Astera Labs, Inc. (ALAB) experienced a significant after-hours plunge of 9.22% following the release of its fourth-quarter financial results. The semiconductor connectivity firm reported after the market close, triggering substantial volatility in extended trading.
The company posted strong quarterly performance, with adjusted earnings per share of $0.58 beating the IBES estimate of $0.51. Revenue reached $270.6 million, exceeding the $249.5 million consensus estimate and representing a 92% year-over-year increase. For the first quarter of fiscal 2026, Astera Labs projected revenue between $286 million and $297 million, also above analyst expectations.
Despite these positive results, investors sold off the stock in after-hours trading, suggesting potential profit-taking after recent gains or concerns about valuation levels following the earnings announcement. The market reaction highlights how even companies that exceed expectations can face selling pressure in extended sessions as traders digest quarterly results and forward guidance.