Astera Labs, Inc. (ALAB.US) released its third-quarter 2026 earnings report after the U.S. market close on November 3: revenue reached $584.9 million, a single-quarter record, up 154% year-over-year and up 49% quarter-over-quarter, surpassing the market expectation of approximately $550 million and also exceeding the upper end of the company's previous guidance range of $540 million to $560 million; non-GAAP earnings per share was $1.32, above the market expectation of approximately $1.19; GAAP earnings per share was $0.99. Non-GAAP gross margin was 72.4%, and non-GAAP operating margin was 44.7%.

A landmark shift occurred in the product mix: the Scorpio smart switch this quarter rose to become the company's largest product line by revenue, primarily driven by the Scorpio X-Series 320-lane switch entering volume ramp-up. The company also unveiled the Aries 7 PCIe 7 signal conditioning portfolio (expected to sample to designated customers in the fourth quarter), the Leo 2 and Leo X-Series memory expansion products, and the Orion reference architecture for rack-level AI inference.

Chief Executive Officer Jitendra Mohan said that accelerating design activity and new design wins position the company to increase the chip value per accelerator. Fourth-quarter guidance is strong: the company expects revenue of $730 million to $750 million, representing approximately 26% quarter-over-quarter growth at the midpoint, above the consensus expectation of $655.7 million; the company expects non-GAAP earnings per share of $1.62 to $1.66, well above analyst forecasts of $1.43; the company also expects GAAP earnings per share of $1.13 to $1.17, with gross margin of approximately 72%.

Despite both results and guidance beating expectations, the company's stock traded lower after hours. As of press time, Astera Labs was down 1.6% in after-hours trading.