Astera Labs (ALAB) Earnings Show Revenue Up 154%, Led by AI Switch Chips
Astera Labs said its revenue rose 154% from a year earlier to a record $584.9 million in the third quarter of 2026, above the top of its own forecast. Its Scorpio switch chips, which connect the processors inside AI server racks, became its biggest product line, and the company expects even more sales in the fourth quarter.
The short answer. Astera Labs makes the chips that let the parts of an AI computer talk to each other quickly. It sold more of them from July to September 2026 than it had predicted in August, and it expects to sell even more by December. It has now beaten its own sales forecast in each of the last five quarters, and this quarter brought its biggest jump in sales yet. Many AI chatbots and cloud services run on racks of machines like these, so its sales show how hard the companies behind them keep building.
Show the data
| Part of the picture | What it shows |
|---|---|
| AI processor | The chips that do the AI work, eight of them in this simplified rack |
| Scorpio switch | Astera Labs' switch chip in the middle, linked to every processor |
| Orange path | Data leaving one processor and reaching another through the switch |
| Scorpio in the third quarter of 2026 | Astera Labs' biggest product family by revenue from July to September 2026 |
Astera Labs third quarter 2026 results at a glance
On this page
- Astera Labs earnings show revenue up 154% in a year
- Why Astera Labs revenue grew so fast
- Astera Labs beat its own forecast again
- How much profit Astera Labs made
- Astera Labs guidance for the fourth quarter
- How Astera Labs stock moved after the results
- Astera Labs cash, inventory and money owed by customers
- Frequently asked questions
Every company reporting the same week, with its date and time, is in StockTitan's Earnings Calendar for the Week of November 2, 2026.
Astera Labs earnings show revenue up 154% in a year
Astera Labs sold $584.9 million of chips and related products from July to September 2026, its best quarter so far. That is 154% more than a year earlier.
Sales also grew 49% from the second quarter of 2026, when revenue was $392.4 million. A year earlier, in the third quarter of 2025, it was $230.6 million.
That jump of $192.5 million was the biggest in the company's history. It was more than all of its sales in the second quarter of 2025, a record at the time. In the four quarters before this one, revenue grew by $38 million to $84 million each quarter.
Show the data
| Category | Value |
|---|---|
| Q2 2025 | $191.9M |
| Q3 2025 | $230.6M |
| Q4 2025 | $270.6M |
| Q1 2026 | $308.4M |
| Q2 2026 | $392.4M |
| Q3 2026 | $584.9M |
Chief executive Jitendra Mohan called the results "outstanding." He said growth was "broad-based" and led by Scorpio, the company's switch chips.
Over the first nine months of 2026, revenue reached $1.29 billion, against $581.9 million in the same months of 2025.
Why Astera Labs revenue grew so fast
The company says Scorpio, its family of switch chips, drove the growth. Scorpio moved into high-volume production and became Astera Labs' largest product family by revenue.
A switch chip works like a traffic hub. It lets many AI processors, and the memory beside them, pass data to each other inside a rack of servers. The faster they share data, the more work the rack can do.
The quarter's leader was the Scorpio X-Series, a fabric switch with 320 lanes, or data paths, now in volume production. In August, the company had said this chip would drive a jump in third quarter revenue. The release does not split revenue by product or by customer.
Mohan said new design wins, products customers chose to build into their coming machines, position the company "to strongly grow our dollar content per accelerator." In plain words, it wants each AI processor a customer installs to come with more Astera Labs chips around it.
The company also added new products in the quarter:
- Aries 7, chips that keep signals clean over copper and optical cables, from a few centimeters up to more than 50 meters. Samples go to select customers in the fourth quarter of 2026.
- Orion, a ready-made design for a whole AI server rack that lets buyers pick their own processors. Partners plan to offer it from the first quarter of 2027.
- Leo X-Series and Leo 2, chips that add more memory to AI and regular servers.
Astera Labs beat its own forecast again
Astera Labs sold more than it had predicted. In August, it said third quarter revenue would be at most $560 million. It reported $584.9 million.
The company gave its full forecast, $540 million to $560 million, with its second quarter results on August 4, 2026. Revenue landed $24.9 million above the top of that range.
Profit also beat the plan. Earnings per share came to $0.99 under standard accounting rules, above the top of the company's forecast. Adjusted earnings per share, which leave out stock pay for employees and some other items, also beat the forecast. The table below has each range.
Gross margin, the share of sales left after the cost of making the chips, landed where the company said it would. It had forecast about 72%, and it reported 72.3%.
This has happened before. In each of the last five quarters, revenue came in above the top of the range Astera Labs gave three months earlier.
Show the data
| Item | Top of forecast | Actual revenue | Change |
|---|---|---|---|
| Q3 2025 | $210.0M | $230.6M | +$20.6M |
| Q4 2025 | $253.0M | $270.6M | +$17.6M |
| Q1 2026 | $297.0M | $308.4M | +$11.4M |
| Q2 2026 | $365.0M | $392.4M | +$27.4M |
| Q3 2026 | $560.0M | $584.9M | +$24.9M |
| Third quarter 2026 | Company forecast, August 4, 2026 | Reported, November 3, 2026 |
|---|---|---|
| Revenue | $540 million to $560 million | $584.9 million |
| Gross margin (GAAP) | About 72% | 72.3% |
| Diluted earnings per share (GAAP) | About $0.87 to $0.92 | $0.99 |
| Diluted earnings per share (non-GAAP) | About $1.16 to $1.21 | $1.32 |
Source: Astera Labs second quarter 2026 results, third quarter of fiscal 2026 financial outlook (Form 8-K exhibit 99.1, August 4, 2026); Astera Labs third quarter 2026 results (Form 8-K exhibit 99.1, November 3, 2026).
How much profit Astera Labs made
Astera Labs earned $182.9 million in the quarter, against $91.1 million a year earlier. That is a profit under standard accounting rules.
Earnings per share rose to $0.99 from $0.50 under standard accounting rules (GAAP). On the adjusted basis, they rose to $1.32 from $0.49.
Operating income, the profit from running the business, was $179.1 million. That is 30.6% of revenue, up from 24.0% a year earlier.
One measure moved the other way. Gross margin, what is left after the cost of making the chips, slipped to 72.3% from 76.2% a year earlier. It was 73.3% in the second quarter.
The release gives no reason for the third quarter. For the second quarter, the company's quarterly report said the margin fell mainly because it sold more lower-margin hardware modules. It also named warrants it gave a customer.
That customer is Amazon. A warrant is a right to buy shares later at a set price. Astera Labs' filing of February 2026 says a new warrant lets Amazon buy up to 3,262,299 of its shares at $142.82 each.
The filing says Amazon earns the right to those shares in steps. Each step unlocks as Amazon and its affiliates reach set levels of payments, up to a total of $6.5 billion, for Astera Labs' switch, signal conditioning and optical products. Signal conditioning chips keep data signals clean over long wires. So the more Amazon buys, the more shares it can claim. Amazon also holds an older warrant from October 2022.
Astera Labs takes the value of these warrants off its revenue as those sales happen. The cut reached $30.4 million in the first nine months of 2026, against $4.0 million a year earlier. About $18.1 million of it came in the third quarter alone.
A few big buyers bring in most of the sales. In the second quarter of 2026, four customers each made up 10% or more of revenue, the largest 29%, according to the company's report for that quarter. The report does not name them, and some are manufacturers that buy for other companies.
Taxes also weighed on the comparison. Astera Labs booked a tax expense of $9.1 million this quarter, after a tax benefit of $24.3 million a year earlier that had lifted that quarter's profit.
Stock pay for employees came to $82.6 million in the quarter, against $40.7 million a year earlier. Most of it went to research and development.
| Measure | Q3 2026 | Q2 2026 | Q3 2025 |
|---|---|---|---|
| Gross margin (GAAP) | 72.3% | 73.3% | 76.2% |
| Gross margin (non-GAAP) | 72.4% | 73.7% | 76.4% |
| Operating income (GAAP) | $179.1 million | $89.2 million | $55.4 million |
| Operating margin (GAAP) | 30.6% | 22.7% | 24.0% |
| Operating income (non-GAAP) | $261.6 million | $153.5 million | $96.1 million |
| Operating margin (non-GAAP) | 44.7% | 39.1% | 41.7% |
| Net income (GAAP) | $182.9 million | $153.1 million | $91.1 million |
| Net income (non-GAAP) | $243.4 million | $145.8 million | $88.2 million |
| Diluted earnings per share (GAAP) | $0.99 | $0.83 | $0.50 |
| Diluted earnings per share (non-GAAP) | $1.32 | $0.80 | $0.49 |
Source: Astera Labs third quarter 2026 results release, statements of operations and reconciliation of GAAP to non-GAAP financial measures, unaudited.
Astera Labs guidance for the fourth quarter
Astera Labs expects $730 million to $750 million of revenue from October to December 2026. That would be more than the record quarter it just reported.
The middle of that range, $740 million, would be about 26.5% more than the third quarter.
It expects gross margin of about 72%, close to the third quarter's level.
On its adjusted basis, the company expects earnings of about $1.62 to $1.66 a share. That compares with $1.32 in the third quarter.
Under standard rules, it expects about $1.13 to $1.17 a share. The gap between the two is mostly stock pay for employees, which the adjusted figure leaves out.
| Fourth quarter 2026 forecast | GAAP | Non-GAAP |
|---|---|---|
| Revenue | $730 million to $750 million | $730 million to $750 million |
| Gross margin | About 72% | About 72% |
| Operating expenses | About $273 million to $279 million | About $194 million to $200 million |
| Tax rate | About 20% | About 12% |
| Diluted earnings per share | About $1.13 to $1.17 | About $1.62 to $1.66 |
| Diluted shares | About 187 million | About 187 million |
Source: Astera Labs third quarter 2026 results release, fourth quarter of fiscal 2026 financial outlook and reconciliation of GAAP to non-GAAP outlook, November 3, 2026.
How Astera Labs stock moved after the results
At 4:58 p.m. ET on November 3, Astera Labs shares traded at $239.00 after hours. That was 2.3% above the day's regular close.
Trading right after the release was choppy. The shares closed the regular session at $233.62. In the minutes after the 4:05 p.m. release, the price swung between $215.00 and $253.87, according to StockTitan price data.
After-hours trading is thin, so prices can move a lot on few trades.
Astera Labs cash, inventory and money owed by customers
Astera Labs held $209.4 million in cash and $1.17 billion in marketable securities at the end of September 2026. It also holds far more chips waiting to be sold.
Inventory, chips made or bought and not yet sold, rose to $200.9 million from $59.0 million at the end of 2025.
Money customers owed the company also climbed. Accounts receivable reached $284.3 million, up from $83.2 million at the end of 2025.
Cash from operations was $341.5 million in the first nine months of 2026, against $224.0 million a year earlier. The balance sheet shows no debt line.
Its earnings per share were based on about 184.1 million diluted shares in the quarter, an average that also counts stock options and similar rights. Amazon's new warrant covers up to 3,262,299 more. The release announces no dividend and no share buyback.
| Balance sheet item | September 30, 2026 | December 31, 2025 |
|---|---|---|
| Cash and cash equivalents | $209.4 million | $167.6 million |
| Marketable securities | $1,168.8 million | $1,021.2 million |
| Accounts receivable, net | $284.3 million | $83.2 million |
| Inventory | $200.9 million | $59.0 million |
| Total assets | $2,300.3 million | $1,531.8 million |
| Total liabilities | $300.9 million | $168.2 million |
| Total stockholders' equity | $1,999.5 million | $1,363.6 million |
Source: Astera Labs third quarter 2026 results release, condensed consolidated balance sheets and statements of cash flows, unaudited.
What to watch
- The share of revenue from each large customer, and any reason for the lower gross margin: in Astera Labs' Form 10-Q for the quarter ended September 30, 2026, when it is filed with the SEC.
- How many warrant shares Amazon has earned so far: in the same Form 10-Q, in its note on warrants.
- Whether revenue lands in the $730 million to $750 million range: in Astera Labs' fourth quarter 2026 results.
Our numbers
These figures are our calculations from the sources linked in this article.
- $24.9 million above the forecast: third quarter revenue of $584.9 million minus $560 million, the top of the range given on August 4, 2026.
- Above its forecast in each of the last five quarters: each quarter's revenue from the third quarter of 2025 to the third quarter of 2026 against the top of the range in the previous quarter's results release.
- A jump of $192.5 million: third quarter 2026 revenue of $584.9 million minus $392.4 million in the second quarter.
- The biggest jump in its history: $192.5 million is more than the $191.9 million record revenue of the second quarter of 2025, so no rise before then could be as large, and the rises since were smaller.
- Growth of $38 million to $84 million a quarter: the change in revenue from each quarter to the next, from the second quarter of 2025 to the second quarter of 2026, using each quarter's results release.
- About 26.5% more: the $740 million middle of the fourth quarter forecast minus third quarter revenue of $584.9 million, divided by $584.9 million.
- About $18.1 million in the third quarter: $30.4 million of warrant deductions in the first nine months of 2026 minus $12.3 million in the first six months, from the second quarter Form 10-Q.
Frequently asked questions
What did Astera Labs report for the third quarter of 2026?
Record revenue of $584.9 million, up 154% from a year earlier and 49% from the second quarter. Net income was $182.9 million, and earnings were $0.99 a share under GAAP, or $1.32 on the company's adjusted basis.
Did Astera Labs beat its guidance?
Yes. In August it forecast third quarter revenue of $540 million to $560 million, and it reported $584.9 million. Earnings per share also came in above its forecast, under both GAAP and its adjusted basis.
What is Astera Labs guidance for the fourth quarter of 2026?
Revenue of $730 million to $750 million, gross margin of about 72% and adjusted earnings of about $1.62 to $1.66 a share, or about $1.13 to $1.17 under GAAP.
How did Astera Labs stock react to earnings?
The shares swung between $215.00 and $253.87 in the minutes after the release. At 4:58 p.m. ET on November 3 they traded at $239.00, 2.3% above the regular close of $233.62.
Who are Astera Labs' biggest customers?
Its quarterly report does not name its largest customers. A February 2026 filing shows Amazon is a customer and holds warrants tied to its purchases. In the second quarter of 2026, four customers each made up 10% or more of revenue, the largest 29%. Some of them are manufacturers that buy for other companies, according to that quarterly report.
What does Astera Labs make?
Chips and software that connect processors, memory and other parts inside AI server racks, including the Scorpio switches, Aries signal chips and Leo memory chips.
Sources
- Astera Labs third quarter 2026 results, Form 8-K exhibit 99.1, SEC, November 3, 2026
- Astera Labs Reports Third Quarter 2026 Financial Results, StockTitan
- Astera Labs second quarter 2026 results and third quarter outlook, Form 8-K exhibit 99.1, SEC, August 4, 2026
- Astera Labs Form 10-Q for the quarter ended June 30, 2026, SEC
- Astera Labs Form 8-K on the Amazon warrant, SEC, February 10, 2026
- Astera Labs investor relations
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