TLDR
- ALAB posted Q1 EPS of $0.61, beating estimates of $0.54 — a 13.66% earnings surprise
- Revenue hit $308.4 million, up 93% year over year and 14% sequentially
- Q2 guidance set at $355–$365 million revenue and EPS of $0.68–$0.70
- PCIe Gen6 products now account for more than one-third of total revenue
- ALAB stock is up ~21% year-to-date, outpacing the S&P 500’s 5.2% gain
Astera Labs (ALAB) reported first-quarter earnings after the bell, topping both revenue and profit estimates. The stock jumped 7.18% on the news.
Astera Labs, Inc. Common Stock, ALAB
EPS came in at $0.61 on a non-GAAP basis, ahead of the $0.54 consensus. That marks a 13.66% earnings surprise — and the fourth consecutive quarter the company has beaten EPS estimates.
Revenue reached $308.4 million for the quarter ended March 2026. That’s up 93% from $159.44 million in the same period last year, and above the consensus estimate by 5.42%.
$ALAB Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $308M (Est. $292M) 🟢; +93% YoY
🔹 EPS: $0.61 (Est. $0.54) 🟢; +85% YoY
🔹 Gross Margin: 76.4% (Est. 74.0%) 🟢
🔹 Operating Margin: 36.2%
🔹 Scorpio X-Series 320-lane AI Fabric Switch: Now shipping, production ramp expected in second… pic.twitter.com/Dt0pUPcLRi— Wall St Engine (@wallstengine) May 5, 2026
Non-GAAP operating margin hit 36.2%, with gross margin at 76.4% — up 70 basis points from the prior quarter.
The company ended Q1 with $1.18 billion in cash and equivalents. Operating cash flow came in at $74.6 million.
PCIe Gen6 and Scorpio Drive Growth
PCIe Gen6 products now make up more than one-third of total revenue, with millions of ports already shipped. Management said this positions the company as an early leader in next-generation interconnects.
The Scorpio fabric switch line is gaining traction. The new Scorpio X 320-lane device — built for in-network compute — has started initial shipments and is expected to become the company’s largest product line by year-end.
On the memory side, the Leo CXL controller is moving from private beta toward general availability on Microsoft Azure M-series virtual machines later this year.
Q2 Guidance and Margin Watch
For Q2, Astera guided revenue of $355–$365 million, implying 15–18% sequential growth. Non-GAAP EPS is forecast at $0.68–$0.70.
Gross margin is expected to dip to around 73% in Q2. Management flagged a one-time non-cash item from a customer agreement as the cause — a roughly 200 basis-point hit.
Operating expenses are also rising. Q2 non-GAAP opex is guided to $128–$131 million, up from $123.9 million in Q1, driven by R&D and integration costs.
The recently acquired XScale Photonics team has been folded into Astera’s design centers. Volume shipments from its optics platform are targeted to ramp around 2027.
Management also flagged “pockets of supply challenges” in the semiconductor industry, with inventory sitting at roughly 75 days. The company said it’s relying on a diversified backend supplier base to manage demand through year-end.
Diluted share count is expected to rise slightly to around 184 million in Q2, from 181.2 million in Q1.
The current consensus EPS estimate for Q2 stands at $0.55 on $309.72 million in revenue, though guidance came in well above those figures. For the full fiscal year, the consensus sits at $2.39 EPS on $1.33 billion in revenue.
ALAB stock is up about 21% year-to-date, compared to a 5.2% gain for the S&P 500.
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