Astera Labs (ALAB) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $584.9M, up 49% QoQ and 154% YoY, driven by demand for Scorpio, Aries and Taurus products.

• Scorpio became the largest product family; Scorpio revenue exceeded a $1B annualized run rate, with X-Series revenue surpassing P-Series.

• New design wins and portfolio expansion across memory, signal conditioning and rack-scale platforms support plans to increase content per accelerator.

Financial highlights

• Q3 GAAP net income was $182.9M, up 101% YoY; non-GAAP net income was $243.4M.

• GAAP diluted EPS was $0.99; non-GAAP diluted EPS was $1.32, up $0.52 or 65% QoQ.

• GAAP gross profit was $422.8M; GAAP gross margin was 72.3%, down 390 bps YoY. Non-GAAP gross margin was 72.4%.

• GAAP operating income was $179.1M; non-GAAP operating income was $261.6M, with a 44.7% non-GAAP operating margin.

• Nine-month revenue was $1.286B and net income was $416.3M; non-GAAP net income was $499.3M.

Outlook and guidance

• Q4 revenue guidance is $730M–$750M, with ~27% sequential growth at the midpoint; drivers include Scorpio expansion and Aries PCIe Gen 6 and Taurus 800G ramps.

• Q4 GAAP and non-GAAP gross margin guidance is ~72%; non-GAAP operating margin is expected at ~45%.

• Q4 GAAP operating expenses are guided to $273M–$279M; non-GAAP operating expenses to $194M–$200M.

• Q4 GAAP diluted EPS guidance is $1.13–$1.17; non-GAAP diluted EPS is $1.62–$1.66, based on ~187M diluted shares.

• Q4 GAAP tax-rate guidance is ~20% and non-GAAP tax-rate guidance is ~12%; Scorpio X, Aries, Leo and optical products are expected to support 2027 growth.