Astera Labs earnings: third quarter 2026

Astera Labs had a record third quarter of 2026: sales jumped 154% on a year earlier, profit from running the business grew even faster, and the company expects another big step up in the fourth quarter. The one figure going the wrong way is gross margin, which has slipped for two quarters in a row. ¹

Against what analysts expected

Astera Labs' own adjusted earnings per share were $1.32, about 59% above the $0.83 analysts had expected on average, according to Nasdaq's earnings calendar. ¹²

The strong points

• Sales reached a record $584.9 million, up 154% on the same quarter a year ago. ¹
• Operating profit, the profit from running the business, roughly doubled from the previous quarter, and it rose to 30.6% of sales. ¹
• Sales came in above the top of the $540 million to $560 million range the company had forecast three months earlier. ¹

The weak points

• Gross margin, what is left of each dollar of sales after the direct cost of making the products, slipped to 72.3% from 76.2% a year ago. ¹
• Over nine months the business turned only about 82% of its profit into cash from operations. ¹

What the company expects

• For the fourth quarter the company expects sales of $730 million to $750 million, roughly a quarter above this record quarter. ¹
• It expects adjusted earnings per share of $1.62 to $1.66 in the fourth quarter, with gross margin of about 72%. ¹

Our verdict on the quarter

A strong report. Sales up 154% on a year ago, profit per share far above what analysts expected and a company forecast of another large rise next quarter make this a strong report, held back only by a slowly slipping gross margin.

The results as published

• The results release itself
• The filing it came with (SEC)
• The previous results, for what it forecast then

Notes

1. Astera Labs's results release, 3 November 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 3 November 2026. ↩