AI Interconnect Chipmaker Astera Labs Reports Record Quarterly Revenue as Scorpio Switches Become Top Product Line
Astera Labs' Q3 revenue hit $584.9 million, up 154% YoY, with its Scorpio series switches emerging as the highest-revenue product family.
U.S.-based semiconductor connectivity solutions provider Astera Labs (Nasdaq: ALAB) reported financial results for the third quarter ended September 30, 2026, on November 3, 2026. The company posted record quarterly revenue of $584.9 million, representing a 49% increase quarter-over-quarter and a 154% increase year-over-year. This strong growth was primarily driven by the volume production ramp-up of its Scorpio™ fabric switches, which have now become Astera Labs' largest product family by revenue.
In terms of profitability, Astera Labs reported a GAAP gross margin of 72.3%, GAAP operating income of $179.1 million, and GAAP net income of $182.9 million for the third quarter, resulting in GAAP diluted net income per share of $0.99. Non-GAAP metrics showed adjusted operating income of $261.6 million and non-GAAP diluted net income per share of $1.32. CEO Jitendra Mohan stated that design activity accelerated with wins across multiple customers, and highlighted new product introductions including Aries 7, Leo 2, and Orion, aiming to expand dollar content per accelerator and total market opportunity.
For the fourth quarter outlook, Astera Labs estimates revenue between $730 million and $750 million, with a GAAP gross margin of approximately 72%. This guidance suggests continued expansion momentum in the AI infrastructure sector, particularly as its rack-scale reference architecture Orion is on track for availability through partners in Q1 2027, and Aries 7 products are expected to begin sampling to select hyperscale customers in Q4 2026.