Astera Labs Q3 2026: Scorpio Switch Drives 49% Revenue Surge
As seen on the 24/7 Wall St. homepage on November 3, 2026.
Scorpio fabric switches just became Astera Labs' biggest product family, powering a 49% sequential revenue jump and a ninth straight EPS beat. Management guided Q4 revenue to $730 million to $750 million, far above the quarter it just reported, yet shares still slipped minutes after the filing.
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Astera Labs posted adjusted EPS of $1.32, beating expectations, with revenue also coming in above estimates. That marks the ninth consecutive quarter the company has topped earnings-per-share expectations, a streak that stretches back to Q4 2024.
The Scorpio X-Series 320-lane switch moved into high-volume production during the quarter and in doing so became Astera Labs' largest product line by revenue. CEO Jitendra Mohan described the quarter as delivering 'record quarterly revenue of $584.9 million, up 49% sequentially and up 154% year-over-year, with broad-based growth led by Scorpio.' Non-GAAP operating margin also expanded, reaching 44.7% compared with 41.7% a year earlier.
Management projected Q4 revenue of $730 million to $750 million, well above what the company just reported, alongside non-GAAP diluted EPS of $1.62 to $1.66. That implies yet another sharp sequential acceleration if the company executes.
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Despite the beat and the bullish outlook, shares slipped in the minutes after the filing. That kind of initial sell-the-news reaction is worth monitoring, since investors will be weighing how much of the guidance was already reflected in the price.
Looking further out, Astera Labs flagged several pipeline items that extend its growth runway. Aries 7, the company's next-generation PCIe 7 signal conditioning portfolio, is expected to begin sampling in Q4 2026. The Orion rack-scale reference architecture is on track for availability through OEM and ODM partners in Q1 2027. The company also cited risks including customer concentration, tariffs and trade barriers, and geopolitical tensions around Taiwan as factors investors should weigh alongside the momentum.
Mentioned: ALAB