Astera Labs (ALAB) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $392.4M, up 27% sequentially and 104% year-over-year, driven by broad-based strength across AI fabric, signal conditioning, and higher average selling prices.

• Scorpio X-Series high-radix AI fabric switches entered volume production, expected to become the largest product family by revenue in Q3, ahead of schedule.

• Strong customer traction with over 10 customers engaged on Scorpio X, including hyperscalers, neo-clouds, and enterprise deployments.

• Expanded product portfolio and ecosystem partnerships, including Aries, Taurus, Leo, and public demonstrations at Computex 2026.

• Significant expansion of Taiwan operations and Cloud-Scale Interop Lab to strengthen engineering and business coordination.

Financial highlights

• Q2 2026 revenue: $392.4M, up 104% year-over-year; six-month revenue: $700.8M, up 99% year-over-year.

• Q2 2026 GAAP gross margin: 73.3%; non-GAAP gross margin: 73.7%.

• Q2 2026 GAAP net income: $153.1M, up 199% year-over-year; non-GAAP net income: $145.8M.

• Q2 2026 GAAP diluted EPS: $0.83; non-GAAP diluted EPS: $0.80.

• Cash, cash equivalents, and marketable securities totaled $1.25B–$1.3B at quarter end.

Outlook and guidance

• Q3 2026 revenue expected between $540M and $560M, representing 40% sequential growth at the midpoint.

• Q3 non-GAAP gross margin expected at ~72%; operating margin at ~43%; non-GAAP diluted EPS guidance: $1.16–$1.21.

• Management expects current liquidity to be sufficient for at least the next 12 months.