W.008Astera Labs guides to $740M, a quarter worth nearly twice its 2024
Astera Labs’ third-quarter revenue rose 154% to $584.9M, and it guides to $730–750M for the fourth: at the midpoint, 1.9 times its revenue for all of 2024. Its Scorpio switches became the largest product line, at more than $1B annualized. The cost is margin: non-GAAP gross margin has fallen 4 points this year, to 72.4%, and the guide holds it near 72%.
One quarter added more than all of 2024’s first half
Revenue by quarter, $M, from Astera Labs’ releases. The outlined bar is the midpoint of the fourth-quarter guidance, $730–750M.
Data
| Quarter | Revenue | Guidance | Above the top | Non-GAAP GM | Revenue, q/q |
|---|---|---|---|---|---|
| Q1 ’24 | $65.3M | – | – | 78.2% | – |
| Q2 ’24 | $76.9M | $71.8M–$73.1M | $3.8M | 78.0% | +18% |
| Q3 ’24 | $113.1M | $95.0M–$100.0M | $13.1M | 77.8% | +47% |
| Q4 ’24 | $141.1M | $126.0M–$130.0M | $11.1M | 74.1% | +25% |
| Q1 ’25 | $159.4M | $151.0M–$155.0M | $4.4M | 74.9% | +13% |
| Q2 ’25 | $191.9M | $170.0M–$175.0M | $16.9M | 76.0% | +20% |
| Q3 ’25 | $230.6M | $203.0M–$210.0M | $20.6M | 76.4% | +20% |
| Q4 ’25 | $270.6M | $245.0M–$253.0M | $17.6M | 75.7% | +17% |
| Q1 ’26 | $308.4M | $286.0M–$297.0M | $11.4M | 76.4% | +14% |
| Q2 ’26 | $392.4M | $355.0M–$365.0M | $27.4M | 73.7% | +27% |
| Q3 ’26 | $584.9M | $540.0M–$560.0M | $24.9M | 72.4% | +49% |
| Q4 ’26 guide | $730M–$750M | non-GAAP gross margin about 72%; non-GAAP EPS $1.62–1.66 | |||
What the quarter says
Revenue rose $192.5M in one quarter, more than Astera’s total for the first half of 2024. It was $24.9M above the top of the $540–560M range it gave in August, 6.3% above the midpoint, and 6.2% above the $550.8M consensus reported by Investing.com, which doesn’t name its provider. Non-GAAP earnings were $1.32 a share, against $1.19 expected; GAAP net income was $182.9M. The non-GAAP operating margin was 44.7%.
The growth came from switches. The release says Scorpio became Astera’s largest product family by revenue, led by volume production of the Scorpio X-Series, a 320-lane fabric switch for scale-up AI racks. According to the call transcript published by Investing.com, Scorpio passed $1B in annualized revenue; X-Series shipped to two customers, and Astera is engaged with more than ten on it. The company gave no 2027 guidance; according to the transcript and MarketBeat’s account, initial shipments of custom products start in late 2027 and ramp to volume in 2028.
Astera has come in above the top of its guidance in every quarter since it listed in March 2024. The margin by which it did so was largest in the last two quarters, $27.4M and $24.9M.
Every quarter above the top of the range
Reported revenue less the top of the guidance range Astera gave a quarter earlier, $M. Q2 2024’s range was given as growth of 10–12% on Q1 and is converted to dollars here.
The margin has given up four points this year
Non-GAAP gross margin by quarter, %, from Astera’s releases; the axis starts at 68%. The outlined bar is the fourth-quarter guidance, about 72%.
Gross margin fell from 76.4% in the first quarter to 72.4% in the third, while revenue nearly doubled. Astera had guided to about 72% for the third quarter; the CFO said on the call the result was above that, and the company expects its Orion rack-scale reference design to add to margin when it ships through partners in 2027.
The year in one line
Nine months of 2026 brought $1285.7M of revenue; with the fourth-quarter midpoint the year comes to about $2.03B, 2.4 times 2025’s $852.5M. The balance sheet shows the ramp: inventory was $200.9M and receivables $284.3M at September 30, with $1.38B of cash and marketable securities. Stock-based compensation was $82.6M, 14.1% of revenue. On the call the CEO said wafer capacity, grid power and memory supply “remain tightly constrained.”
The shares closed at $233.62 on Tuesday, up 1.7% before the report. After-hours readings conflicted: Investing.com had them down 0.3%, Benzinga between 2.8% and 6.2% lower.
What this changes on 06.ai
- Series lead: scale-up switch revenue (Astera Scorpio, with Broadcom and Nvidia NVLink switch disclosures where they exist). Astera’s “over $1B annualized” is, as far as we know, the first public revenue figure for a third-party scale-up switch line; it matters for the racks behind custom accelerators as well as GPUs.
- Pack lead (009, AI compute demand): Astera’s fourth-quarter guidance, +173% on a year earlier, and Arista’s (W.006) are two networking-side checks on accelerator volumes; they belong beside AMD’s (W.004) and Nvidia’s when Nvidia reports.
Sources and method
| Item | Figure | Source |
|---|---|---|
| Q3 2026 results | Revenue $584.9M, up 49% on Q2 and 154% on Q3 2025; gross margin 72.3% GAAP, 72.4% non-GAAP; operating income $179.1M GAAP, $261.6M non-GAAP; net income $182.9M; EPS $0.99 GAAP, $1.32 non-GAAP; stock-based compensation $82.6M; inventory $200.9M; receivables $284.3M; cash $209.4M and marketable securities $1,168.8M; Q4 guidance $730–750M, gross margin about 72%, non-GAAP EPS $1.62–1.66; Scorpio the largest product family by revenue | Astera Labs 8-K, exhibit 99.1, Nov 3 |
| Q2 2026 | Revenue $392.4M; non-GAAP gross margin 73.7%; Q3 guidance $540–560M | Astera Labs, Aug 4 |
| Q1 2026 | Revenue $308.4M; 76.4%; Q2 guidance $355–365M | Astera Labs |
| Q4 2025 | Revenue $270.6M; 75.7%; Q1 2026 guidance $286–297M; full-year 2025 | Astera Labs |
| Q3 2025 | Revenue $230.6M; 76.4%; Q4 guidance $245–253M | Astera Labs |
| Q2 2025 | Revenue $191.9M; 76.0%; Q3 guidance $203–210M | Astera Labs |
| Q1 2025 | Revenue $159.4M; 74.9%; Q2 guidance $170–175M | Astera Labs |
| Q4 2024 | Revenue $141.1M; 74.1%; Q1 2025 guidance $151–155M; full-year 2024 $396.3M | Astera Labs |
| Q3 2024 | Revenue $113.1M; 77.8%; Q4 guidance $126–130M | Astera Labs |
| Q2 2024 | Revenue $76.9M; 78.0%; Q3 guidance $95–100M | Astera Labs |
| Q1 2024 | Revenue $65.3M; 78.2%; Q2 guidance up 10–12% on Q1 | Astera Labs |
| Call and consensus | Q3 consensus revenue $550.8M and EPS $1.19 (provider not named); Scorpio over $1B annualized; X-Series at two customers; more than 10 customers engaged on Scorpio X; supply constraints | Investing.com transcript, Nov 3 |
| Call | Summary of the call; custom shipments from late 2027 | MarketBeat, Nov 3 |
| Prices | Nov 3 close $233.62, up 1.72%; after-hours moves | Benzinga via TradingView |
Revenue, guidance and gross margin are as Astera reported them each quarter. Growth divides by the previous quarter or the same quarter a year earlier. The fourth-quarter midpoint is ($730M + $750M) ÷ 2 = $740M: +26.5% on Q3 ($584.9M) and +173.5% on Q4 2025 ($270.6M); 1.87 times 2024’s $396.3M. The amount above guidance is revenue less the top of the range given a quarter earlier; Q2 2024’s range is $65.3M × 1.10 to × 1.12 = $71.8M–$73.1M.
The 2026 estimate adds the first three quarters ($308.4M + $392.4M + $584.9M = $1285.7M) to the guidance midpoint. 2025 is the sum of its four quarters, $852.5M. The first half of 2024 is $65.3M + $76.9M = $142.2M, against the third quarter’s rise of $192.5M. Scorpio’s figure, customer counts and the supply comment are from the call as transcribed by Investing.com, not from the release.
Wire reports are written within hours of the news, on a six-hour schedule. Each lists its sources and shows the arithmetic behind its figures. Not investment advice.