Astera Labs Stock Earnings Reports

Astera Labs reported a strong Q1 FY2026 with revenue of $308.4M, up 14% sequentially and 93% year-over-year, and non-GAAP EPS of $0.61. Growth was broad-based across signal conditioning (Aries, Taurus) and the Scorpio fabric switch family, with PCIe Gen6 products contributing over one-third of revenue. The company is ramping initial volume shipments of Scorpio X-Series (including a newly introduced 320-lane high-radix model) with full production expected in H2 2026, and expects Scorpio to become its largest product line by year-end. Astera is expanding its optical roadmap after acquiring aiXscale Photonics, targeting NPO and CPO deployments and volume connector shipments beginning in 2027. The Leo CXL controller is tracking for early ramp with Microsoft Azure M-Series and the company secured a custom KV Cache design expected to ship in 2027. Financially, Q1 non-GAAP gross margin was 76.4%; operating expenses reflect continued R&D investments (including aiXscale integration and a new Israel design center). Cash and equivalents were $1.18B. Q2 guidance: revenue $355M–$365M (up 15%-18% sequentially), non-GAAP EPS $0.68–$0.70, non-GAAP gross margin ~73% (including a ~200bp noncash warrant impact), and operating expenses $128M–$131M. Management emphasized secular tailwinds from accelerated AI infrastructure spending, expansion into higher-value and custom solutions (NVLink Fusion, KV Cache, UALink), and continued strategic investments to drive growth above market rates.