Astera Labs (ALAB.US) Q3 earnings and guidance exceed expectations; Scorpio rises to become the top revenue-generating product line

According to Golden Ten Data, semiconductor company Astera Labs (ALAB.US) released its Q3 2026 financial report after the US stock market closed on November 3rd: revenue reached $584.9 million, setting a single-quarter record, up 154% year-on-year and 49% quarter-on-quarter, exceeding market expectations of about $550 million and also surpassing the company’s previous guidance range upper limit of $540 million to $560 million. Non-GAAP earnings per share were $1.32, higher than the market expectation of about $1.19; GAAP earnings per share were $0.99. Non-GAAP gross margin was 72.4%, and the non-GAAP operating margin was 44.7%.

A significant change occurred in the product structure: this quarter, the Scorpio intelligent switch became the company's largest product line by revenue, mainly driven by the production ramp-up of the Scorpio X-Series 320-lane switch. During the same period, the company also released the Aries 7 PCIe 7 signal conditioning product suite (samples expected to be delivered to designated customers in Q4), Leo 2 and Leo X-Series memory expansion products, as well as the Orion reference architecture aimed at rack-level AI inference. CEO Jitendra Mohan stated that accelerated design activities and new design orders will enable the company to increase the chip value assigned to a single accelerator.

Strong guidance for Q4: the company expects revenue to be between $730 million and $750 million, with the midpoint representing approximately 26% quarter-on-quarter growth, higher than the market consensus of $655.7 million. The company expects non-GAAP earnings per share to be $1.62 to $1.66, well above analysts’ forecast of $1.43; GAAP earnings per share are expected to be $1.13 to $1.17, with a gross margin of about 72%.

Although both results and guidance exceeded expectations, the company’s share price fell after hours. As of press time, Astera Labs was down 1.6% in after-hours trading.