Astera Labs Q2 FY2026: revenue up 104.0%, gross margin slips to 73.3%
Astera Labs beat on both revenue and EPS, and guided Q3 revenue 40.2% above the quarter just reported — growth is not the problem. The problem is quality: gross margin fell 3.0 points sequentially to 73.3%, and a $50.3 million tax benefit pushed net income above pretax income. Read this as a fast-growing business whose next quarter depends on one product ramp and whose profit is getting thinner.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS was $0.83 and non-GAAP diluted EPS was $0.80, against a consensus estimate of $0.7054 — a 13.4% beat on the comparable non-GAAP number. The catch is where the profit came from: pretax income was $102.8 million, and a $50.3 million income tax benefit is what lifted net income to $153.1 million. Treat the headline EPS as flattered by a tax item rather than a pure operating result.
Revenue of $392.4 million rose 27.0% sequentially and 104.0% year-over-year, with management citing broad-based strength and a record quarter for the Aries product line. Growth is accelerating, not fading, and there is no volume warning sign in the quarter. The strain shows up lower down, in margin, not in the top line.
Management guided Q3 revenue to a range of $540 million to $560 million, a $550 million midpoint that is 40.2% above Q2 and 138.5% above the $230.6 million reported in the year-ago quarter. Gross margin is guided to approximately 72%, below the 73.3% just posted, with non-GAAP EPS of $1.16 to $1.21. In the two prior guide-versus-actual pairs in the filing data, revenue beat the guided midpoint by 5.8% and 9.0%.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-24
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