Astera Labs stock enters Scorpio-led growth phase after record Q3

Astera Labs reported record third-quarter results on Tuesday, November 3, 2026, as demand for its AI connectivity products accelerated. In its financial release, the company said revenue for the quarter ended September 30 reached 584.9 million US dollars, a 49 percent increase from the second quarter and a 154 percent increase from the year-earlier period.

Scorpio fabric switches became Astera Labs' largest product family by revenue, led by volume production of the Scorpio X-Series 320-lane fabric switch. The company said its portfolio also benefited from broader demand across AI fabric and signal-conditioning products. Scorpio X-Series revenue surpassed P-Series revenue during the quarter, marking a significant shift in the product mix.

Record quarter raises execution stakes

Astera Labs reported GAAP gross margin of 72.3 percent, operating income of 179.1 million US dollars and net income of 182.9 million US dollars. Diluted GAAP earnings were 0.99 US dollars per share. On a non-GAAP basis, gross margin was 72.4 percent, operating margin was 44.7 percent and diluted earnings were 1.32 US dollars per share.

The difference between the GAAP and non-GAAP figures reflects adjustments that include stock-based compensation and the related tax effect. Astera Labs presents the adjusted figures as supplemental measures, while the GAAP results remain the company's reported accounting figures.

Management guided to fourth-quarter revenue of 730 million to 750 million US dollars for the period ending December 31. The outlook includes GAAP diluted earnings of 1.13 to 1.17 US dollars per share and non-GAAP diluted earnings of 1.62 to 1.66 US dollars per share. Astera Labs expects gross margin of about 72 percent under both measures.

Product expansion supports next phase

Chief Executive Officer Jitendra Mohan said design activity accelerated across a broad set of programs and customers. The company expects growth to remain tied to the expansion of Scorpio X-Series and P-Series platforms, while Aries, Taurus and the Leo memory connectivity products add further routes for expansion.

Astera Labs also introduced Aries 7 for optical and copper signal conditioning, expanded the Leo Smart Memory Controller family and unveiled Orion, a rack-scale reference architecture. Aries 7 products are expected to begin sampling to selected customers in the fourth quarter of 2026, while Orion reference and system designs are planned to become available through OEM and ODM partners from the first quarter of 2027.

Astera Labs stock traded at 174.25 euros on Lang & Schwarz at 14:07 CET on Friday, November 6, 2026. The real-time quote of Astera Labs stock provides the latest trading indication.

The broader market context is available in current market reports.

More news and analyses on Astera Labs stock cover the company's product ramps, earnings and AI infrastructure exposure.