Astera Labs stock enters a Scorpio-led growth phase

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

The result was accompanied by strong profitability. GAAP gross margin was 72.3 percent, operating income was 179.1 million US dollars and net income was 182.9 million US dollars. Diluted GAAP earnings per share came to 0.99 US dollars. On a non-GAAP basis, gross margin was 72.4 percent, operating margin was 44.7 percent and diluted earnings per share reached 1.32 US dollars.

Scorpio Becomes The Main Growth Engine

Scorpio fabric switches became Astera Labs' largest product family by revenue during the quarter. The company linked the change to volume production of the Scorpio X-Series 320-lane fabric switch, which is designed for scale-up networks in AI systems. Chief Executive Officer Jitendra Mohan said growth was broad-based and that Scorpio had ramped to high-volume production.

The shift raises the importance of execution as Astera Labs expands deployments across customers and platforms. The company is also building a wider connectivity platform around the switch business, with products for memory expansion, optical and copper signal conditioning, and rack-scale systems.

Fourth-Quarter Outlook Sets A Higher Bar

For the fourth quarter of fiscal 2026, Astera Labs guided to revenue of 730 million to 750 million US dollars. At the midpoint, the range represents sequential growth of 27 percent. GAAP diluted earnings per share are expected at 1.13 to 1.17 US dollars, while non-GAAP diluted earnings per share are forecast at 1.62 to 1.66 US dollars.

Management expects non-GAAP gross margin of approximately 72 percent and non-GAAP operating expenses of 194 million to 200 million US dollars. The company said Scorpio X-Series and P-Series expansion should drive the connectivity business, while PCIe Gen 6 retimer adoption in Aries and the ramp of Taurus 800-gigabit solutions should support signal-conditioning growth.

The outlook also highlights the next development areas. Astera Labs introduced Aries 7 for PCIe 7 optical and copper signal conditioning, expanded its 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, while Orion rack and system designs are targeted for availability through OEM and ODM partners beginning in the first quarter of 2027.

What The Stock Quote Shows

Astera Labs stock traded at 191.00 euros on Lang & Schwarz at 13:01 CET on Tuesday, November 10, 2026. The quote followed the company's earnings release and guidance update, but the available figures do not establish a causal link between the report and the intraday price.

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