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ALAB beat Q1 estimates with EPS up 84.8% and revenue rising 93.4% year over year.
PCIe 6 products drove over one-third of revenue, with millions of ports already shipped.
Scorpio X-Series shipments began, with growth expected through 2026 alongside AI demand.
Astera Labs (ALAB - Free Report) reported first-quarter 2026 non-GAAP earnings of 61 cents per share, up 84.8% year over year. The results beat the Zacks Consensus Estimate by 13.66%.
Revenues totaled $308 million, up 93.4% from the year-ago quarter and surpassed the Zacks Consensus Estimate by 5.42%. Results reflected robust demand tied to the company’s PCIe 6 connectivity portfolios, which contributed more than one-third of total revenue in the quarter.
ALAB Posts Broad-Based Growth Across Core Portfolios
ALAB’s top line increased 14% sequentially, supported by strength across signal conditioning and switch fabric offerings that enable both scale-up and scale-out connectivity in AI platforms. Management highlighted continued diversification, with multiple customers and product categories contributing to growth.
PCIe Gen 6 momentum remained a central theme. The company noted it has shipped millions of PCIe Gen 6 ports to date, underscoring both portfolio maturity and the pace of adoption as AI infrastructure transitions to higher-speed interconnect standards.
Astera Labs, Inc. Price, Consensus and EPS Surprise
Astera Labs emphasized progress in its Scorpio family, with Scorpio X-Series products beginning to ship in initial production volumes during the quarter. Management expects Scorpio X-Series shipments to rise in the second quarter, alongside initial shipments of the newly announced 320-lane Scorpio X device, before ramping up to full volume production in the second half of 2026.
The company also expanded the Scorpio P-Series PCIe 6 switch family to span 32 to 320 lanes. Leadership positioned the broader Scorpio portfolio as a platform for higher-value AI fabric deployments, citing features such as Hypercast and in-network compute aimed at improving collective operations and reducing networking overhead in large-scale training and inference workloads.
ALAB’s Operating Details
Non-GAAP gross margin was 76.4% in the first quarter, expanding 150 basis points year over year, primarily due to a lower mix of hardware sales within the signal conditioning portfolio. This result points to solid underlying profitability despite the ongoing product ramp and expanding portfolio.
Research and development expenses surged 94.6% year over year to $125.6 million. Sales and marketing expenses increased 0.9% year over year to $21.9 million. General and administrative expenses increased 17.9% year over year to $25.8 million.
The non-GAAP operating margin was 36.2% compared with 33.7% in the year-ago quarter.
Astera Labs Maintains Strong Liquidity and Operating Cash
As of March 31, 2026, cash and cash equivalents and marketable securities were $1.18 billion.
Cash flow from operations was $74.6 million in the first quarter.
ALAB Posts 2Q26 Guidance
For the second quarter of 2026, ALAB expects revenues between $355 million and $365 million, implying 15% to 18% sequential growth. The outlook is driven by the continued adoption of PCIe 6 across AI platforms, rising Taurus volumes for AI scale-out connectivity and a sustained early-stage ramp-up of Scorpio X-Series products for large-scale XPU clustering.
Non-GAAP gross margin is expected to be approximately 73%, including an estimated 200-basis-point noncash impact tied to a recently executed warrant agreement with a customer.
The company expects non-GAAP operating expenses in the range of $128 million-$131 million, with non-GAAP diluted earnings projected to be between 68 cents and 70 cents per share.
ALAB Zacks Rank & Stocks to Consider
Astera Labs currently carries a Zacks Rank #3 (Hold).
Shares of Analog Devices have gained 50.9% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 67% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 25.2% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
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Astera Labs Q1 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
Astera Labs (ALAB - Free Report) reported first-quarter 2026 non-GAAP earnings of 61 cents per share, up 84.8% year over year. The results beat the Zacks Consensus Estimate by 13.66%.
Revenues totaled $308 million, up 93.4% from the year-ago quarter and surpassed the Zacks Consensus Estimate by 5.42%. Results reflected robust demand tied to the company’s PCIe 6 connectivity portfolios, which contributed more than one-third of total revenue in the quarter.
ALAB Posts Broad-Based Growth Across Core Portfolios
ALAB’s top line increased 14% sequentially, supported by strength across signal conditioning and switch fabric offerings that enable both scale-up and scale-out connectivity in AI platforms. Management highlighted continued diversification, with multiple customers and product categories contributing to growth.
PCIe Gen 6 momentum remained a central theme. The company noted it has shipped millions of PCIe Gen 6 ports to date, underscoring both portfolio maturity and the pace of adoption as AI infrastructure transitions to higher-speed interconnect standards.
Astera Labs, Inc. Price, Consensus and EPS Surprise
Astera Labs, Inc. price-consensus-eps-surprise-chart | Astera Labs, Inc. Quote
Astera Labs Deepens Scorpio Lineup for AI Fabrics
Astera Labs emphasized progress in its Scorpio family, with Scorpio X-Series products beginning to ship in initial production volumes during the quarter. Management expects Scorpio X-Series shipments to rise in the second quarter, alongside initial shipments of the newly announced 320-lane Scorpio X device, before ramping up to full volume production in the second half of 2026.
The company also expanded the Scorpio P-Series PCIe 6 switch family to span 32 to 320 lanes. Leadership positioned the broader Scorpio portfolio as a platform for higher-value AI fabric deployments, citing features such as Hypercast and in-network compute aimed at improving collective operations and reducing networking overhead in large-scale training and inference workloads.
ALAB’s Operating Details
Non-GAAP gross margin was 76.4% in the first quarter, expanding 150 basis points year over year, primarily due to a lower mix of hardware sales within the signal conditioning portfolio. This result points to solid underlying profitability despite the ongoing product ramp and expanding portfolio.
Research and development expenses surged 94.6% year over year to $125.6 million. Sales and marketing expenses increased 0.9% year over year to $21.9 million. General and administrative expenses increased 17.9% year over year to $25.8 million.
The non-GAAP operating margin was 36.2% compared with 33.7% in the year-ago quarter.
Astera Labs Maintains Strong Liquidity and Operating Cash
As of March 31, 2026, cash and cash equivalents and marketable securities were $1.18 billion.
Cash flow from operations was $74.6 million in the first quarter.
ALAB Posts 2Q26 Guidance
For the second quarter of 2026, ALAB expects revenues between $355 million and $365 million, implying 15% to 18% sequential growth. The outlook is driven by the continued adoption of PCIe 6 across AI platforms, rising Taurus volumes for AI scale-out connectivity and a sustained early-stage ramp-up of Scorpio X-Series products for large-scale XPU clustering.
Non-GAAP gross margin is expected to be approximately 73%, including an estimated 200-basis-point noncash impact tied to a recently executed warrant agreement with a customer.
The company expects non-GAAP operating expenses in the range of $128 million-$131 million, with non-GAAP diluted earnings projected to be between 68 cents and 70 cents per share.
ALAB Zacks Rank & Stocks to Consider
Astera Labs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices (ADI - Free Report) , Applied Materials (AMAT - Free Report) and Audioeye (AEYE - Free Report) . Each stock currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 50.9% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 67% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 25.2% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.