Astera Labs Reports Third Quarter 2026 Financial Results

• Record quarterly income of $584.9 million, up 49% QoQ and up 154% year-over-year

• Scorpio™ cloth switches turned the corporate’s largest product household, led by quantity manufacturing of the Scorpio X-Series 320-lane cloth swap

• Portfolio expanded throughout reminiscence, optical and copper sign conditioning, and rack-scale AI platforms with Leo 2 and Leo X-Series, Aries 7 and Orion

SAN JOSE, Calif., Nov. 03, 2026 (GLOBE NEWSWIRE) — Astera Labs, Inc. (Nasdaq: ALAB), a frontrunner in semiconductor-based connectivity options for rack-scale AI infrastructure, at present introduced monetary outcomes for the third quarter of fiscal yr 2026, ended September 30, 2026.

“Astera Labs delivered outstanding Q3 2026 results, with record quarterly revenue of $584.9 million, up 49% sequentially and up 154% year-over-year, with broad-based growth led by Scorpio, which ramped to high-volume production and became our largest product family by revenue,” stated Jitendra Mohan, Astera Labs’ Chief Executive Officer. “Design activity accelerated with wins across a broad set of programs and applications at multiple customers. We expanded our portfolio with the introduction of Aries 7 for optical and copper signal conditioning, Leo 2 and Leo X-Series for AI and general-purpose memory expansion, and Orion rack-scale reference architecture. The expansion of our intelligent connectivity platform and new design wins position us to strongly grow our dollar content per accelerator and further increase our total market opportunity.”

Third Quarter of Fiscal 2026 Financial Highlights
GAAP Financial Results:

• Revenue of $584.9 million, up 49% sequentially and up 154% year-over-year

• GAAP gross margin of 72.3%

• GAAP working earnings of $179.1 million

• GAAP working margin of 30.6%

• GAAP internet earnings of $182.9 million

• GAAP diluted internet earnings per share of $0.99

Non-GAAP Financial Results (1):

• Non-GAAP gross margin of 72.4%

• Non-GAAP working earnings of $261.6 million

• Non-GAAP working margin of 44.7%

• Non-GAAP internet earnings of $243.4 million

• Non-GAAP diluted internet earnings per share of $1.32

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(1) See “Reconciliation of GAAP to Non-GAAP Financial Measures” desk included beneath.

Q3 2026 and Recent Business Highlights

• Announced Aries 7, the trade’s first and broadest PCIe® 7 sign conditioning portfolio, spanning Smart Retimers, Smart Redrivers, Smart Cable Modules, Smart Optical Drivers, and Smart Optical Transimpedance Amplifiers (TIAs). The expanded portfolio extends attain from centimeters of PCB hint to 50+ meters over optical cables spanning a number of racks and contains optical connectivity options purpose-built for near-packaged optics (NPO) and linear pluggable optics (LPO) functions. Aries 7 Smart Retimers and Smart Redrivers assist the OCP Signal Conditioner Standard Footprint, permitting clients to pick out totally different sign conditioners with out redesigning the board. Aries 7 merchandise are anticipated to start sampling in This autumn 2026 to pick out hyperscale, OEM, and NPO clients.

• Unveiled Orion, a compute-agnostic rack-scale reference structure that enables clients to decide on their very own GPU and CPU. Orion includes six production-grade reference designs—spanning rack, compute tray, cloth tray, reminiscence tray, hyperlink board, and compute board—and its high-radix 320-lane PCIe swap cloth is designed to scale from 8 to 160 accelerators per pod whereas serving to the identical accelerator extract extra tokens per second throughout AI inference workloads. All designs are built-in with COSMOS Rack Manager and COSMOS Fabric Manager orchestration software program for administration, fleet-wide telemetry and diagnostics. Orion is designed primarily for neocloud and enterprise clients constructing AI inference capability, and rack reference and system designs are on monitor for availability by Astera Labs’ OEM and ODM companions starting in Q1 2027.

• Expanded the Leo Smart Memory Controller™ household with three new reminiscence connectivity options—Leo X-Series and the Leo 2 E-Series and P-Series—extending the portfolio throughout direct fabric-attached GPU reminiscence, CPU-attached enlargement, and pooled reminiscence architectures. Paired with Scorpio X-Series Fabric Switches, Leo X-Series allows fabric-attached reminiscence for long-context, KV-cache-intensive workloads, bettering inference efficiency with as much as 62% sooner time-to-first-token and as much as 22% extra tokens per second (as measured by the corporate’s inner testing). The new Leo 2 E-Series and P-Series assist CPU-attached DDR4 and DDR5 reminiscence enlargement with PCIe® 6 and CXL® 3.2 assist, and double reminiscence bandwidth and capability versus the earlier technology.

• Showcased the expanded Aries and Orion households on the 2026 Open Compute Project (OCP) Global Summit in San Jose, together with a powered Orion rack that includes interchangeable, pre-validated compute trays with totally different CPU and accelerator configurations and reside demonstrations of the Scorpio X-Series 320-lane Smart Fabric Switch with Hypercast™ and In-Network Compute, the Leo X-Series Smart Memory Controller, and PCIe 7 copper and optical sign conditioning.

Fourth Quarter of Fiscal 2026 Financial Outlook
Based on present enterprise developments and circumstances, Astera Labs estimates the next:

GAAP Financial Outlook:

• Revenue inside a variety of $730 million to $750 million

• GAAP gross margin of roughly 72%

• GAAP working bills inside a variety of roughly $273 million to $279 million

• GAAP tax charge of roughly 20%

• GAAP diluted internet earnings per share of roughly $1.13 to $1.17 on weighted-average diluted shares excellent of roughly 187 million

Non-GAAP Financial Outlook(2):

• Non-GAAP gross margin of roughly 72%

• Non-GAAP working bills inside a variety of roughly $194 million to $200 million

• Non-GAAP tax charge of roughly 12%

• Non-GAAP diluted internet earnings per share of roughly $1.62 to $1.66 on weighted-average diluted shares excellent of roughly 187 million

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(2) See “Reconciliation of GAAP to Non-GAAP Outlook” desk included beneath.

Earnings Webcast and Conference Call
Astera Labs will host a convention name to overview its monetary outcomes for the third quarter of 2026 and to debate its monetary outlook at present at 1:30 p.m. Pacific Time. Interested events might be part of the convention name by dialing 1-833-461-5787 and utilizing convention ID 751 181 378. The name may even be webcast and could be accessed on the Astera Labs web site at https://ir.asteralabs.com/. The webcast will likely be recorded and out there for replay on the corporate’s web site for the following six months.

Discussion of Non-GAAP Financial Measures
We use sure non-GAAP monetary measures, together with these regarding our monetary outlook, to complement the efficiency measures in our consolidated monetary statements, that are introduced in accordance with GAAP. A reconciliation of those non-GAAP measures to the closest GAAP measures could be discovered later on this launch. The timing and affect of any changes to reach on the corresponding GAAP monetary measures regarding our monetary outlook are inherently depending on future occasions which can be usually unsure or which may be exterior of our management. These non-GAAP monetary measures embody non-GAAP gross revenue, non-GAAP gross margin, non-GAAP working bills, non-GAAP working earnings, non-GAAP working margin, non-GAAP tax charge, non-GAAP internet earnings, and non-GAAP diluted internet earnings per share. We use these non-GAAP monetary measures for monetary and operational decision-making and as a method to help us in evaluating period-to-period comparisons. By excluding sure objects that might not be indicative of our recurring core working outcomes, we consider that non-GAAP gross revenue, non-GAAP gross margin, non-GAAP working bills, non-GAAP working earnings, non-GAAP working margin, non-GAAP tax charge, non-GAAP internet earnings, and non-GAAP diluted internet earnings per share present significant supplemental info concerning our efficiency. Accordingly, we consider these non-GAAP monetary measures are helpful to buyers and others as a result of they permit for extra info with respect to monetary measures utilized by administration in its monetary and operational decision-making they usually could also be utilized by our institutional buyers and the analyst neighborhood to assist them analyze the well being of our enterprise. However, there are a variety of limitations associated to using non-GAAP monetary measures, and these non-GAAP measures ought to be thought-about along with, not as an alternative choice to or in isolation from, our monetary outcomes ready in accordance with GAAP. Other firms, together with firms in our trade, might calculate these non-GAAP monetary measures otherwise or by no means, which reduces their usefulness as comparative measures.

We regulate the next objects from a number of of our non-GAAP monetary measures:

Stock-based compensation expense
We exclude non-cash stock-based compensation expense from sure of our non-GAAP monetary measures as a result of we consider that excluding this merchandise gives significant supplemental info concerning operational efficiency. In explicit, firms calculate non-cash stock-based compensation expense utilizing quite a lot of valuation methodologies and subjective assumptions. Moreover, stock-based compensation expense is a non-cash cost that may fluctuate considerably from interval to interval for causes which can be unrelated to our core working efficiency, and subsequently excluding this merchandise gives buyers and different customers of our monetary info with info that enables significant comparisons of our enterprise efficiency throughout intervals.

Acquisition-related prices
We exclude acquisition-related prices incurred in reference to our acquisitions, which we typically wouldn’t have in any other case incurred within the intervals introduced as a part of our persevering with operations. Acquisition-related prices embody sure incremental bills incurred to impact a enterprise mixture resembling third-party prices: advisory, authorized, accounting, valuation, and different skilled charges. We consider that offering the non-GAAP measures excluding these prices assists our buyers as a result of such prices aren’t reflective of our ongoing working outcomes.

Other
We exclude different changes, together with non-cash honest worth changes associated to fairness investments with out readily determinable honest values. These investments are measured at price and adjusted for observable value adjustments or impairment on a nonrecurring foundation solely upon the incidence of sure occasions. Accordingly, these changes aren’t indicative of our core working efficiency.

Income tax impact
This represents the affect of the non-GAAP changes on an after-tax foundation and one-off discrete tax changes which can be unrelated to our core working efficiency in reference to the presentation of non-GAAP internet earnings and non-GAAP diluted internet earnings per share. This strategy is designed to boost buyers’ potential to grasp the affect of our non-GAAP tax expense on our present operations, present improved modeling accuracy, and considerably scale back fluctuations brought on by GAAP to non-GAAP changes.

Cautionary Note Regarding Forward-Looking Statements
This press launch and the accompanying oral presentation include forward-looking statements based mostly on Astera Labs’ present expectations. The phrases “accelerating,” “advance,” “ahead,” “aim,” “anticipate,” “beginning,” “believe,” “built to,” “can,” “capabilities,” “coming,” “commence,” “committed,” “confidence,” “continue,” “could,” “deliver,” “designed,” “drive,” “early stages,” “enable,” “estimates,” “expanding,” “expect,” “forecasting,” “forthcoming,” “forward,” “future,” “goal,” “going forward,” “growth,” “guidance,” “intend,” “interest,” “journey,” “long-term,” “look,” “may,” “mission,” “momentum,” “multi-year,” “next,” “on track,” “opportunity,” “outlook,” “paths,” “plan,” “poised,” “position,” “potential,” “progressing,” “project,” “proliferate,” “proposed,” “prospects,” “provide,” “pursuing,” “ramp,” “represent,” “roadmap,” “should,” “strategy,” “targeted,” “track,” “trajectory,” “trends,” “upcoming,” “upside,” “ultimately,” “vectors,” “vision,” “well positioned,” “will,” “would,” and comparable phrases as they relate to Astera Labs, in addition to any references to future intervals, are supposed to determine such forward-looking statements. These forward-looking statements mirror the present views and assumptions of Astera Labs as of November 3, 2026, and are topic to varied assumptions, beliefs, dangers and uncertainties that might trigger precise outcomes to vary materially from expectations. These forward-looking statements embody, however aren’t restricted to, statements concerning market developments, dynamics and expectations (together with cloud and AI infrastructure and connectivity market developments and the trade’s build-out); our and our final clients’ future demand, product purchases, deployment of programs incorporating our merchandise, enterprise, working outcomes, money circulation, monetary place, outlook and steering (and any underlying drivers), together with for the fourth quarter of fiscal 2026; our enterprise technique, plans and market, income or different types of alternatives, our absolute or relative market share or progress profile or charge and our timing, diversification and talent to additional construct upon our income base, increase our product choices, portfolio and options or efficiency, improve and repair our market alternative (together with the timing and extent of such market alternatives), stay on the forefront of an AI infrastructure transformation, and scale or increase our connectivity platform; our goals or methods for future operations (resembling our optical, customized options and rack-scale platform companies), organizational investments and adjustments, and the drivers, timing and impacts related therewith; our pre-production, manufacturing, growth, delivery/shipments and supply of (together with timing and clients), exercise, functions and demand for, availability of, in addition to absolute and relative income, progress (together with the drivers), pricing, ramping and roadmap (e.g., optical, Leo and Orion) for, current, new, rising or enhanced (whether or not technologically or in any other case) merchandise or software program, together with the excessive quantity deployment of Scorpio X-Series options, the enlargement of our Scorpio P-Series buyer base, the sampling and availability of our Aries 7 portfolio, the supply of Orion rack reference and system designs by our OEM and ODM companions, the adoption of our expanded Leo portfolio, and extra progress catalysts throughout our Scorpio, Aries, Taurus and Leo portfolios, and the comparative capabilities, efficiency and outcomes of these merchandise or software program for our clients; the advantages, timing, affect, proliferation and buyer adoption of various connectivity requirements and calls for; the design wins at and diversification, exercise, engagements and expectations of our clients; the plans and potential success of our introduced and ongoing collaborations, partnerships and strategic relationships, together with our warrant settlement with Amazon and our collaborations with AMD, Intel and NVIDIA; the power of UALink 2.0 to offer for a purpose-built AI compute cloth able to scaling with trade wants over time and the timing of any preliminary packages; our aggressive positioning and the impacts thereof; our analysis and growth, expertise and strategic IP plans; the methods related to, investments in and dimension of our crew, in addition to the related impacts; and future trade and macroeconomic circumstances, occasions and developments resembling in cloud and AI infrastructure in addition to our preparedness and options for them.

Quite a lot of dangers and elements which can be past our management might trigger precise outcomes to vary materially from these within the forward-looking statements together with, with out limitation: the aggressive and cyclical nature of the semiconductor trade; the focus of our buyer base; the adjustments in demand for AI; the macroeconomic and/or geopolitical setting, together with financial uncertainty and volatility within the capital markets; dangers that demand for our merchandise and the availability chain could also be adversely affected, together with by the imposition of tariffs by the United States or another jurisdiction and any corresponding retaliatory tariffs, adjustments in political insurance policies, army battle (resembling between Russia/Ukraine and in Israel, Iran and the Middle East), terrorism, sanctions or different geopolitical occasions globally (together with battle between Taiwan and China); quarterly fluctuations in revenues and working outcomes; difficulties creating new merchandise that obtain market acceptance; dangers related to managing worldwide actions (together with commerce boundaries, significantly with respect to China); our potential to efficiently full acquisitions and to combine newly acquired companies and choices; absence of long-term commitments from clients; dangers that Astera Labs might not have the ability to handle strains related to its progress; credit score dangers related to its accounts receivable; inventory value volatility; info expertise dangers, together with cybersecurity dangers resembling cyber-attacks towards Astera Labs’ merchandise and its networks; and different dangers and uncertainties which can be detailed underneath the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-Okay, filed with the U.S. Securities and Exchange Commission (“SEC”) on February 20, 2026, and in subsequent Quarterly Reports on Form 10-Q filed with the SEC and the opposite SEC filings and reviews Astera Labs might make every so often. Moreover, we function in a really aggressive and quickly altering setting, and new dangers might emerge every so often. It is just not potential for our administration to foretell all dangers, nor can we assess the affect of all elements on our enterprise or the extent to which any issue(s) might trigger precise outcomes or outcomes to vary materially from these contained in any forward-looking statements we might make. Accordingly, you shouldn’t unduly depend on any of the forward-looking statements. Astera Labs disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not because of new info, future occasions, or in any other case, besides as required by regulation.

About Astera Labs
Astera Labs (Nasdaq: ALAB) gives rack-scale AI infrastructure by purpose-built connectivity options. By collaborating with hyperscalers and ecosystem companions, Astera Labs allows organizations to unlock the total potential of contemporary AI. Astera Labs’ Intelligent Connectivity Platform integrates CXL®, Ethernet, NVLink Fusion, PCIe®, and UALink™ semiconductor-based applied sciences with the corporate’s COSMOS software program suite to unify numerous parts into cohesive, versatile programs that ship end-to-end scale-up and scale-out connectivity. The firm’s customized connectivity options enterprise enhances its standards-based portfolio, enabling clients to deploy tailor-made architectures to fulfill their distinctive infrastructure necessities. Discover extra at www.asteralabs.com.

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(1) Total might not sum as a consequence of rounding.

(2) Acquisition-related prices included sure incremental bills incurred to impact a enterprise mixture resembling third-party prices: advisory, authorized, accounting, valuation, and different skilled charges.

(3) Other included non-cash and nonrecurring honest worth changes on fairness investments with out readily determinable honest values.

(4) Income tax impact is calculated based mostly on the tax legal guidelines within the jurisdictions by which we function and is calculated to exclude the affect of stock-based compensation expense and one-off discrete tax changes which can be unrelated to our core working efficiency. For the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, the non-GAAP tax charge was roughly 11%, 12%, and 18%, respectively. For the 9 months ended September, 2026 and 2025, the non-GAAP tax charge was roughly 11% and 12%, respectively.

IR CONTACT: Leslie Green
leslie.inexperienced@asteralabs.com