Astera Labs Reports Second Quarter 2026 Financial Results

Record quarterly revenue of $392.4 million, up 27% QoQ and up 104% year-over-year
Q2 revenue strength reflects diversified growth across AI fabrics and signal conditioning
Q3 revenue inflection to be driven by Scorpio™ X-Series 320-lane fabric switch production ramp

SAN JOSE, Calif., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Astera Labs, Inc. (Nasdaq: ALAB), a leader in semiconductor-based connectivity solutions for rack-scale AI infrastructure, today announced preliminary financial results for the second quarter of fiscal year 2026, ended June 30, 2026.

“Astera Labs delivered outstanding Q2 2026 results, with record revenue of $392.4 million, up 27% sequentially and 104% year-over-year, driven by broad-based strength across our portfolio, including record quarterly revenue for our Aries product line,” said Jitendra Mohan, Astera Labs’ Chief Executive Officer. “We expect momentum to accelerate in Q3 as Scorpio fabric switches become our largest product family, one quarter ahead of our prior expectations. This milestone will mark our evolution into a complete AI fabric infrastructure provider. New design wins across a broadening set of customers coupled with our expansion into optical interconnects and custom solutions further expand our growth opportunity in 2027 and beyond.”

Second Quarter of Fiscal 2026 Financial Highlights
GAAP Financial Results:

Revenue of $392.4 million, up 27% sequentially and up 104% year-over-year
GAAP gross margin of 73.3%
GAAP operating income of $89.2 million
GAAP operating margin of 22.7%
GAAP net income of $153.1 million
GAAP diluted net income per share of $0.83

Non-GAAP Financial Results ⁽¹⁾:

Non-GAAP gross margin of 73.7%
Non-GAAP operating income of $153.5 million
Non-GAAP operating margin of 39.1%
Non-GAAP net income of $145.8 million
Non-GAAP diluted net income per share of $0.80

____________________
(1) See “Reconciliation of GAAP to Non-GAAP Financial Measures” table included below.

Q2 2026 and Recent Business Highlights

Expanded Taurus signal conditioning portfolio to include 3.2T Smart Retimers and Smart Redrivers for 224G Ethernet and UALink connectivity, purpose-built for AI infrastructure. The new Taurus Smart Signal Conditioners are the industry’s first OCP standard footprint compatible design to enable Smart Swap, which will give architects the flexibility to choose between low-power Smart Redrivers and long-reach Smart Retimers without board re-design. The expanded portfolio leverages Astera Labs’ Unified COSMOS software capabilities and will integrate telemetry, diagnostics, and intelligent link management to deliver advanced observability across high-speed interconnects.
Showcased comprehensive portfolio updates at Computex 2026 in Taiwan highlighting current AI rack-scale connectivity strategy and the first public demonstration of the Scorpio X-Series 320 Lane Smart Fabric Switch. Additional demonstrations included ultra-low latency optical connectivity, NVIDIA MGX-based reference designs, 200G/lane technology with SerDes diagnostics, COSMOS-enabled rack-level validation, and production ready systems from Astera Labs and ecosystem partners.
Demonstrated ecosystem partnership and compatibility at AMD Advancing AI 2026 with multiple exhibits highlighting Astera Labs’ solutions to resolve data movement bottlenecks across PCIe, CXL, and Ethernet. Joint architectures included AMD Instinct platforms operating with Scorpio P-Series 320L for fabric optimization, Leo CXL memory controller for smart memory tiering, and Taurus 1.6T Smart Ethernet Retimers for scale-out connectivity, all with full-stack interop validated from end to end.
Announced significant expansion of Astera Labs’ Taiwan operations and Cloud-Scale Interop Lab, deepening the company’s presence within one of the world’s most important semiconductor ecosystems. Astera Labs’ expanded Taiwan footprint positions the company to bring together broader engineering, cross-functional support, and closer business coordination with key AI platform providers including AMD, Arm, Intel, and NVIDIA.

Third Quarter of Fiscal 2026 Financial Outlook
Based on current business trends and conditions, Astera Labs estimates the following:

GAAP Financial Outlook:

Revenue within a range of $540 million to $560 million
GAAP gross margin of approximately 72%
GAAP operating expenses within a range of approximately $232 million to $236 million
GAAP tax rate of approximately 4%
GAAP diluted net income per share of approximately $0.87 to $0.92 on weighted-average diluted shares outstanding of approximately 185 million

Non-GAAP Financial Outlook⁽²⁾:

Non-GAAP gross margin of approximately 72%
Non-GAAP operating expenses within a range of approximately $156 million to $160 million
Non-GAAP tax rate of approximately 12%
Non-GAAP diluted net income per share of approximately $1.16 to $1.21 on weighted-average diluted shares outstanding of approximately 185 million

____________________
(2) See “Reconciliation of GAAP to Non-GAAP Outlook” table included below.

Earnings Webcast and Conference Call
Astera Labs will host a conference call to review its financial results for the second quarter of 2026 and to discuss our financial outlook today at 1:30 p.m. Pacific Time. Interested parties may join the conference call by dialing 1-833-461-5787 and using conference ID 622 676 657. The call will also be webcast and can be accessed at the Astera Labs website at https://ir.asteralabs.com/. The webcast will be recorded and available for replay on the company’s website for the next six months.

Discussion of Non-GAAP Financial Measures
We use certain non-GAAP financial measures, including those concerning our financial outlook, to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the closest GAAP measure can be found later in this release. The timing and impact of any adjustments to arrive at the corresponding GAAP financial measures concerning our financial outlook are inherently dependent on future events that are typically uncertain or that may be outside of our control. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income, and non-GAAP diluted net income per share. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons. By excluding certain items that may not be indicative of our recurring core operating results, we believe that, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income, and non-GAAP diluted net income per share provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense
We exclude non-cash stock-based compensation expense from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate non-cash stock-based compensation expense using a variety of valuation methodologies and subjective assumptions. Moreover, stock-based compensation expense is a non-cash charge that can vary significantly from period to period for reasons that are unrelated to our core operating performance, and therefore excluding this item provides investors and other users of our financial information with information that allows meaningful comparisons of our business performance across periods.

Acquisition-related costs
We exclude acquisition-related costs incurred in connection with our acquisitions, which we generally would have not otherwise incurred in the periods presented as part of our continuing operations. Acquisition-related costs include certain incremental expenses incurred to effect a business combination such as third-party costs: advisory, legal, accounting, valuation, and other professional fees. We believe that providing the non-GAAP measures excluding these costs assists our investors because such costs are not reflective of our ongoing operating results.

Income tax effect
This represents the impact of the non-GAAP adjustments on an after-tax basis and one-off discrete tax adjustments that are unrelated to our core operating performance in connection with the presentation of non-GAAP net income and non-GAAP net income per diluted share. This approach is designed to enhance investors’ ability to understand the impact of our non-GAAP tax expense on our current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments.

Other
We exclude other adjustments, including non-cash fair value adjustments related to equity investments without readily determinable fair values. These investments are measured at cost and adjusted for observable price changes or impairment on a nonrecurring basis only upon the occurrence of certain events. Accordingly, these adjustments are not indicative of our core operating performance.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements based on Astera Labs' current expectations. The words “accelerating,” “advance,” “ahead,” “aim,” “anticipate,” “beginning,” “believe," “capabilities,” “coming,” “commence,” “committed,” “confidence,” “continue,” “could,” “deliver,” “designed,” “drive,” “early stages,” “enable,” “estimates," “expanding,” “expect," “forecasting,” “forthcoming,” “forward,” “future,” “goal,” “going forward,” “growth,” “guidance,” “intend," “interest,” “long-term,” “look,” “may,” “mission,” “momentum,” “multi-year,” “next,” “on track,” “opportunity,” “outlook,” “paths,” “planning,” “poised,” “positions,” “potential,” “progressing,” “project,” “proliferate,” “proposed,” “prospects,” “provide,” “pursuing,” “ramp,” “represent,” “roadmap,” “should,” “strategy,” “targeted,” “track,” “trajectory,” “trends,” “upcoming,” “upside,” “ultimately,” “vision,” “well positioned,” “will,” “would,” and similar phrases as they relate to Astera Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Astera Labs as of August 4, 2026, and are subject to various assumptions, beliefs, risks and uncertainties that could cause actual results to differ materially from expectations. These forward-looking statements include, but are not limited to, statements regarding market trends, dynamics and expectations (including cloud and AI infrastructure and connectivity market trends and the industry’s build out); our and our ultimate customers’ future demand, product purchases, deployment of systems incorporating our products, business, operating results, cash flow, financial position, outlook and guidance (and any underlying drivers), including for the third quarter of fiscal 2026; our business strategy, plans and market, revenue or other forms of opportunities, our absolute or relative market share or growth profile or rate and our timing and ability to further build upon our revenue base, expand our product offerings, portfolio and features or performance, increase and service our market opportunity (including the timing and extent of such market opportunities), remain at the forefront of an AI infrastructure transformation, and scale or expand our connectivity platform; our objectives or strategies for future operations (such as our optical and custom solutions businesses), organizational investments and changes, and the drivers, timing and impacts associated therewith; our production, development, shipping/shipments and delivery of (including timing and customers), activity, applications and demand for, availability of, as well as absolute and relative revenue, growth (including the drivers), ramping and roadmap (e.g., optical) for, existing, new, growing or enhanced (whether technologically or otherwise) products or software, including the high volume deployment of Scorpio X-Series solutions, production volume deployment of Scorpio X-Series 320-L, additional growth catalysts across our Scorpio P-Series, Aries, Taurus and Leo portfolios, and the comparative capabilities, performance and results of those products or software for our customers; the benefits, timing, impact, proliferation and customer adoption of different connectivity standards and demands; the design wins at and diversification, activity, engagements and expectations of our customers; the plans and potential success of our announced and ongoing collaborations, partnerships and strategic relationships, including our warrant agreement with Amazon; the ability of UALink 2.0 to provide for a purpose-built AI compute fabric capable of scaling with industry needs over time and the timing of any initial programs; our competitive positioning and the impacts thereof; our R&D, technology and strategic IP plans; our expanded global footprint with our new Israel Design Center, and the anticipated effects and benefits associated with the design center; the strategies associated with, investments in and size of our team, as well as the associated impacts; and maximize and future industry and macroeconomic conditions, events and trends such as in cloud and AI infrastructure as well as our preparedness and solutions for them. A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation: the competitive and cyclical nature of the semiconductor industry; the concentration of our customer base; the changes in demand for AI; the macroeconomic and/or geopolitical environment, including economic uncertainty and volatility in the capital markets; risks that demand for our products and the supply chain may be adversely affected, including by the imposition of tariffs by the United States or any other jurisdiction and any corresponding retaliatory tariffs, changes in political policies, military conflict (such as between Russia/Ukraine and in Israel, Iran and the Middle East), terrorism, sanctions or other geopolitical events globally (including conflict between Taiwan and China); quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with managing international activities (including trade barriers, particularly with respect to China); our ability to successfully complete acquisitions and to integrate newly acquired businesses and offerings; absence of long-term commitments from customers; risks that Astera Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; stock price volatility; information technology risks, including cyber-attacks against Astera Labs' products and its networks; and other risks and uncertainties that are detailed under the caption “Risk Factors” and elsewhere in our Annual Report on 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”) on February 20, 2026, and in subsequent Quarterly Reports on Form 10-Q filed with the SEC and the other SEC filings and reports Astera Labs may make from time to time. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not unduly rely on any of the forward-looking statements. Astera Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

About Astera Labs
Astera Labs (Nasdaq: ALAB) provides rack-scale AI infrastructure through purpose-built connectivity solutions. By collaborating with hyperscalers and ecosystem partners, Astera Labs enables organizations to unlock the full potential of modern AI. Astera Labs' Intelligent Connectivity Platform integrates CXL^®, Ethernet, NVLink Fusion, PCIe^®, and UALink™ semiconductor-based technologies with the company's COSMOS software suite to unify diverse components into cohesive, flexible systems that deliver end-to-end scale-up and scale-out connectivity. The company's custom connectivity solutions business complements its standards-based portfolio, enabling customers to deploy tailored architectures to meet their unique infrastructure requirements. Discover more at www.asteralabs.com.


ASTERA LABS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands)

	As of
	June 30, 2026			December 31, 2025
Assets
Current assets
Cash and cash equivalents	$	111,453		$	167,611
Marketable securities		1,141,505			1,021,205
Accounts receivable, net		192,469			83,202
Inventory		113,781			58,979
Prepaid expenses and other current assets		92,687			31,033
Total current assets		1,651,895			1,362,030
Property and equipment, net		119,284			92,038
Goodwill		91,557			19,015
Other assets		68,765			58,740
Total assets	$	1,931,501		$	1,531,823

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	53,930		$	42,362
Accrued expenses and other current liabilities		110,377			90,680
Total current liabilities		164,307			133,042
Other liabilities		41,490			35,147
Total liabilities		205,797			168,189

Stockholders’ equity
Common stock		17			17
Additional paid-in capital		1,485,320			1,348,969
Accumulated other comprehensive (loss) income		(3,369	)		4,310
Retained earnings		243,736			10,338
Total stockholders’ equity		1,725,704			1,363,634
Total liabilities and stockholders’ equity	$	1,931,501		$	1,531,823

ASTERA LABS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30, 2026		March 31, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Revenue	$	392,400	$	308,361	$	191,925	$	700,761	$	351,367
Cost of revenue		104,833		73,220		46,362		178,053		86,393
Gross profit		287,567		235,141		145,563		522,708		264,974

Operating expenses
Research and development		135,898		125,634		66,724		261,532		131,278
Sales and marketing		26,372		21,899		18,609		48,271		40,311
General and administrative		36,049		25,775		20,456		61,824		42,326
Total operating expenses		198,319		173,308		105,789		371,627		213,915
Operating income		89,248		61,833		39,774		151,081		51,059
Interest and other income		13,577		11,581		10,885		25,158		21,317
Income before income taxes		102,825		73,414		50,659		176,239		72,376
Income tax benefit		50,263		6,896		560		57,159		10,662
Net income	$	153,088	$	80,310	$	51,219	$	233,398	$	83,038

Net income per share attributable to common stockholders:
Basic	$	0.89	$	0.47	$	0.31	$	1.36	$	0.51
Diluted	$	0.83	$	0.44	$	0.29	$	1.28	$	0.47
Weighted-average shares used in calculating net income per share attributable to common stockholders:
Basic		172,378		170,726		165,428		171,557		164,316
Diluted		183,340		181,157		178,100		182,254		178,281

ASTERA LABS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)

	Six Months Ended June 30,
		2026			2025
Cash flows from operating activities
Net income	$	233,398		$	83,038
Adjustments to reconcile net income to net cash provided by operating activities
Stock-based compensation		112,905			77,920
Depreciation and amortization		7,639			2,517
Non-cash operating lease expense		2,718			1,522
Warrants contra revenue		12,313			2,136
Accretion of discounts on marketable securities		(2,180	)		(4,489	)
Other, net		(2,961	)		734
Changes in operating assets and liabilities:
Accounts receivable, net		(109,461	)		14,491
Inventory		(53,127	)		(14,577	)
Prepaid expenses and other assets		(41,422	)		(18,474	)
Accounts payable		2,811			4,607
Accrued expenses and other liabilities		(357	)		(3,555	)
Net cash provided by operating activities		162,276			145,870
Cash flows from investing activities
Purchases of property and equipment		(28,054	)		(6,562	)
Purchases of marketable securities		(359,732	)		(404,682	)
Sales and maturities of marketable securities		233,933			343,611
Payments for business combinations, net of cash acquired		(69,214	)		—
Other investing activities		(2,500	)		—
Net cash used in investing activities		(225,567	)		(67,633	)
Cash flows from financing activities
Proceeds from exercises of stock options		836			778
Proceeds from employee stock purchase plan		6,294			4,345
Net cash provided by financing activities		7,130			5,123
Net (decrease) increase in cash, cash equivalents, and restricted cash		(56,161	)		83,360
Cash, cash equivalents, and restricted cash
Beginning of the period		167,684			80,044
End of the period	$	111,523		$	163,404

ASTERA LABS, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (In thousands, except percentages and per share amounts)

	Three Months Ended									Six Months Ended
	June 30, 2026			March 31, 2026			June 30, 2025			June 30, 2026			June 30, 2025
GAAP gross profit	$	287,567		$	235,141		$	145,563		$	522,708		$	264,974
Stock-based compensation expense		1,692			499			353			2,191			315
Non-GAAP gross profit	$	289,259		$	235,640		$	145,916		$	524,899		$	265,289

GAAP gross margin		73.3	%		76.3	%		75.8	%		74.6	%		75.4	%
Stock-based compensation expense		0.4			0.2			0.2			0.3			0.1
Non-GAAP gross margin⁽¹⁾		73.7	%		76.4	%		76.0	%		74.9	%		75.5	%

GAAP operating income	$	89,248		$	61,833		$	39,774		$	151,081		$	51,059
Stock-based compensation expense		63,992			48,913			35,474			112,905			77,920
Acquisition-related costs⁽²⁾		232			983			—			1,213			—
Non-GAAP operating income	$	153,472		$	111,729		$	75,248		$	265,199		$	128,979

GAAP operating margin		22.7	%		20.1	%		20.7	%		21.6	%		14.5	%
Stock-based compensation expense		16.3			15.9			18.5			16.1			22.2
Acquisition-related costs⁽²⁾		0.1			0.3			—			0.2			—
Non-GAAP operating margin⁽¹⁾		39.1	%		36.2	%		39.2	%		37.8	%		36.7	%

GAAP net income	$	153,088		$	80,310		$	51,219		$	233,398		$	83,038
Stock-based compensation expense		63,992			48,913			35,474			112,905			77,920
Acquisition-related costs⁽²⁾		232			983			—			1,213			—
Other⁽³⁾		(1,500	)		—			—			(1,500	)		—
Income tax effect⁽⁴⁾		(69,996	)		(20,137	)		(8,670	)		(90,133	)		(23,308	)
Non-GAAP net income	$	145,816		$	110,069		$	78,023		$	255,883		$	137,650

Net income per share attributable to common stockholders:
GAAP - basic	$	0.89		$	0.47		$	0.31		$	1.36		$	0.51
GAAP - diluted	$	0.83		$	0.44		$	0.29		$	1.28		$	0.47
Non-GAAP - diluted	$	0.80		$	0.61		$	0.44		$	1.40		$	0.77

Weighted average shares used to compute net income per share attributable to common stockholders:
GAAP - basic		172,378			170,726			165,428			171,557			164,316
GAAP - diluted		183,340			181,157			178,100			182,254			178,281

____________________
(1) Total may not sum due to rounding.
(2) Acquisition-related costs included certain incremental expenses incurred to effect a business combination such as third-party costs: advisory, legal, accounting, valuation, and other professional fees.
(3) Other included non-cash and nonrecurring fair value adjustments on equity investments without readily determinable fair values.
(4) Income tax effect is calculated based on the tax laws in the jurisdictions in which we operate and is calculated to exclude the impact of stock-based compensation expense and one-off discrete tax adjustments that are unrelated to our core operating performance. For the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, the non-GAAP tax expense rate was approximately 12%, 11%, and 9%, respectively. For the six months ended June 30, 2026 and 2025, the non-GAAP tax expense rate was approximately 11% and 8%, respectively.

ASTERA LABS, INC., RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK (Unaudited) (In millions, except percentages and per share amounts)

	Outlook for Three Months Ending September 30, 2026
	Low			High
GAAP gross margin		72	%		72	%
Stock-based compensation expense		—			—
Non-GAAP gross margin		72	%		72	%

GAAP operating expense	$	232		$	236
Stock-based compensation expense		(76	)		(76	)
Non-GAAP operating expense	$	156		$	160

GAAP tax rate		4	%		4	%
Income tax effect		8			8
Non-GAAP tax rate		12	%		12	%

GAAP net income per share - diluted	$	0.87		$	0.92
Stock-based compensation expense		0.40			0.40
Income tax effect		(0.11	)		(0.11	)
Non-GAAP net income per share - diluted	$	1.16		$	1.21

ASTERA LABS, INC. SUPPLEMENTAL FINANCIAL INFORMATION STOCK-BASED COMPENSATION EXPENSE (Unaudited) (In thousands)

	Three Months Ended						Six Months Ended
	June 30, 2026		March 31, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Cost of revenue	$	1,692	$	499	$	353	$	2,191	$	315
Research and development		36,413		29,404		17,852		65,817		37,038
Sales and marketing		11,419		9,892		9,194		21,311		21,513
General and administrative		14,468		9,118		8,075		23,586		19,054
Total stock-based compensation expense	$	63,992	$	48,913	$	35,474	$	112,905	$	77,920

IR CONTACT: Leslie Green
leslie.green@asteralabs.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.