Astera Labs Reports Q3 2026 Revenue Jump 154% to $584.9 million, EPS $1.32

ALAB reported record third-quarter 2026 revenue of $584.9 million on Tuesday, Nov. 3, up 154% from a year earlier and 49% from the second quarter, according to the company's release. Diluted EPS was $1.32 on a non-GAAP basis and $0.99 on a GAAP basis. Zacks said earnings beat consensus by 10.92% and revenue beat by 6.27%.

Margins moved lower. GAAP gross margin was 72.3%, versus 76.2% a year earlier and 73.3% in the second quarter; non-GAAP gross margin was 72.4%. Even so, GAAP operating income was $179.1 million, a 30.6% margin, and non-GAAP operating income was $261.6 million, a 44.7% margin. The company said Scorpio fabric switches became its largest product family, and it announced Aries 7, which is sampling in the fourth quarter of 2026.

For the fourth quarter, the company guided revenue of $730 million to $750 million and GAAP gross margin of approximately 72%. It guided diluted EPS of $1.13 to $1.17 on a GAAP basis and $1.62 to $1.66 on a non-GAAP basis, on about 187 million diluted shares.

Zacks noted the stock has gained 38.1% year to date and carries a Zacks Rank of #3 (Hold). Investors may watch whether fourth-quarter revenue lands inside the guided range, whether gross margin holds near the guided 72% after the year-over-year decline, and how the company's customer mix develops, which the release did not quantify.