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

Astera Labs reported record third-quarter revenue after the quarter ended September 30, 2026, as Scorpio fabric switches moved into high-volume production. In its November 3 newsroom release, the semiconductor company said revenue rose 49 percent from the previous quarter and 154 percent from a year earlier.

Revenue reached 584.9 million US dollars. GAAP net income was 182.9 million US dollars, while diluted earnings per share came to 0.99 US dollars. On Astera Labs' adjusted basis, net income was 243.4 million US dollars and diluted earnings per share was 1.32 US dollars.

Scorpio becomes the revenue leader

Scorpio became Astera Labs' largest product family by revenue during the quarter. The company said the change was led by volume production of the Scorpio X-Series 320-lane fabric switch, which is designed for scale-up networks in AI infrastructure. Scorpio X-Series revenue also exceeded revenue from the P-Series during the quarter.

Management said growth was broad-based across the company's AI fabric and signal-conditioning portfolios. The release also highlighted Aries 7 for optical and copper signal conditioning, expanded Leo memory connectivity products and Orion, a rack-scale reference architecture for AI inference deployments. Aries 7 products are expected to begin sampling to selected customers in the fourth quarter of 2026, while Orion rack reference and system designs are on track for availability through partners from the first quarter of 2027.

Fourth-quarter outlook sets higher bar

Astera Labs expects fourth-quarter revenue of 730 million to 750 million US dollars. At the midpoint, that would represent another sequential increase of about 27 percent based on management's outlook. The company expects continued expansion of Scorpio X-Series and P-Series products across customers and platforms, alongside growth in Aries PCIe Gen 6 retimers and Taurus 800G solutions.

Astera Labs forecasts a GAAP gross margin of approximately 72 percent and GAAP diluted earnings per share of 1.13 to 1.17 US dollars for the fourth quarter. Its non-GAAP diluted earnings-per-share outlook is 1.62 to 1.66 US dollars. Investors will therefore track whether the Scorpio ramp can sustain rapid sales growth while margins remain close to the third-quarter level.

Market context for investors

Astera Labs stock traded at 191.75 euros on Lang & Schwarz at 13:09 CET on Thursday, November 5, 2026.

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Follow more news and analyses on Astera Labs stock for further developments in AI connectivity and the Scorpio product ramp.