Astera Labs Q3 FY2026: revenue up 154% to $584.9 million, margin slips
Astera Labs beat its own revenue guide again, posting $584.9 million, up 49.0% from the prior quarter, but the margin trend is the real story: gross margin fell to 72.3% from 76.2% a year ago and management guides 72% again for Q4. Read this quarter as a volume story, not a pricing story. The scorecard below separates the growth from the give-back, and the cash-flow and working-capital lines show what it costs to grow this fast.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS came in at $0.99 and non-GAAP at $1.32, against a single consensus figure of $1.2149 that does not say which basis it uses. On a non-GAAP basis that is roughly an 8.7% beat; on a GAAP basis it is roughly an 18.5% miss, so the headline depends entirely on the comparison you pick. Operating income of $179.1 million, a 30.6% GAAP margin, carried the quarter, with $13.0 million of interest and other income helping below the line.
Revenue of $584.9 million rose 49.0% from Q2's $392.4 million and 154.0% from $230.6 million a year earlier, the steepest sequential step-up in the quarters shown. Scorpio fabric switches are now the largest product family, so the growth is concentrated in one line rather than spread evenly across the portfolio. Nothing in the release suggests the ramp is finished.
Management guides Q4 revenue to a $730 million to $750 million range, a midpoint of $740.0 million, which is 26.5% above the quarter just reported. Gross margin is guided to approximately 72%, below the 72.3% just delivered and well under the 76.2% of a year ago. Non-GAAP EPS guidance of $1.62 to $1.66 assumes 187 million diluted shares, versus 184.1 million actually used this quarter.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
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 2026-11-04
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.