Astera Labs (ALAB.US) Q3 results and guidance beat expectations; Scorpio jumps to become the largest product line by revenue

Semiconductor company Astera Labs (ALAB.US) released its Q3 2026 report after the U.S. market close on November 3: revenue was US$584.9 million, a record for a single quarter, up 154% year-over-year and 49% quarter-over-quarter, above the market expectation of about US$550 million and also above the upper end of the company's prior guidance range of US$540 million to US$560 million; non-GAAP earnings per share were US$1.32, above the market expectation of about US$1.19; GAAP earnings per share were US$0.99. Non-GAAP gross margin was 72.4%, and non-GAAP operating margin was 44.7%. A landmark change occurred in the product mix: Scorpio smart switches jumped this quarter to become the company's largest product line by revenue, driven mainly by the Scorpio X-Series 320-lane switch entering volume ramp. During the same period, the company also launched the Aries 7 PCIe 7 signal conditioning product portfolio (expected to sample to designated customers in the fourth quarter), the Leo 2 and Leo X-Series memory expansion products, and the Orion reference architecture for rack-level AI inference. Chief Executive Officer Jitendra Mohan said that accelerating design activity and new design wins position the company to increase the chip value per accelerator. Fourth-quarter guidance was strong: the company expects revenue of US$730 million to US$750 million, with the midpoint up about 26% quarter-over-quarter, above the consensus expectation of US$655.7 million; the company expects non-GAAP earnings per share of US$1.62 to US$1.66, far above analysts' forecast of US$1.43; the company also expects GAAP earnings per share of US$1.13 to US$1.17 and gross margin of about 72%. Although both results and guidance beat expectations, the company's shares fell after hours. As of publication, Astera Labs was down 1.6% after hours.