Astera Labs (ALAB) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $392.4M, up 27% sequentially and 104% year-over-year, driven by broad-based strength across AI fabric, signal conditioning, and connectivity portfolios.

• Scorpio X-Series entered volume production, expected to become the largest product family by revenue in Q3, one quarter ahead of prior expectations.

• Strong customer traction with over 10 customers engaged on Scorpio X, including hyperscalers, neo-clouds, and enterprise deployments across both liquid and air-cooled servers.

• Expanded product portfolio and ecosystem partnerships, including new Taurus Smart Signal Conditioners and public demonstrations at Computex 2026.

• Significant expansion of Taiwan operations and Cloud-Scale Interop Lab to strengthen engineering and business coordination.

Financial highlights

• Q2 2026 revenue reached $392.4M, up 27% sequentially and 104% year-over-year.

• Non-GAAP gross margin was 73.7%, above guidance; non-GAAP operating margin was 39.1%.

• GAAP net income for Q2 2026 was $153.1M, a 199% increase year-over-year; non-GAAP net income was $145.8M.

• GAAP diluted EPS was $0.83; non-GAAP diluted EPS was $0.80, up over 30% from Q1.

• Cash, cash equivalents, and marketable securities totaled $1.3B at quarter end.

Outlook and guidance

• Q3 2026 revenue expected between $540M and $560M, representing 40% sequential growth at midpoint.

• Q3 non-GAAP gross margin expected at ~72%; operating margin at ~43%, up 400 basis points sequentially.

• Q3 non-GAAP diluted EPS expected between $1.16 and $1.21; GAAP diluted EPS forecasted at $0.87–$0.92.

• Management expects current liquidity to be sufficient for at least the next 12 months and beyond.

• Future capital requirements will depend on growth rate, R&D, capital expenditures, and potential M&A.