second quarter of fiscal year 2026
Filed Aug 4, 2026Record quarterly revenue of $392.4 million, up 27% QoQ and up 104% year-over-year, with Q3 revenue outlook of $540 million to $560 million.
Revenue reached a record $392.4 million, grew 27% sequentially and 104% year-over-year, and Q3 revenue guidance calls for $540 million to $560 million as Scorpio X-Series fabric switches enter production ramp.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $392.4 million | up 27% sequentially | up 104% year-over-year |
| Gross marginGAAP | 73.3% | – | – |
| Operating incomeGAAP | $89.2 million | – | – |
| Operating marginGAAP | 22.7% | – | – |
| Net incomeGAAP | $153.1 million | – | – |
| Diluted net income per shareGAAP | $0.83 | – | – |
| Gross marginnon-GAAP | 73.7% | – | – |
| Operating incomenon-GAAP | $153.5 million | – | – |
| Operating marginnon-GAAP | 39.1% | – | – |
| Net incomenon-GAAP | $145.8 million | – | – |
| Diluted net income per sharenon-GAAP | $0.80 | – | – |
Third Quarter of Fiscal 2026 outlook
- Revenue$540 million to $560 million
- Gross marginGAAP gross margin of approximately 72%; Non-GAAP gross margin of approximately 72%
- Operating expensesGAAP operating expenses within a range of approximately $232 million to $236 million; Non-GAAP operating expenses within a range of approximately $156 million to $160 million
- Tax rateGAAP tax rate of approximately 4%; Non-GAAP tax rate of approximately 12%
- NoteGAAP diluted net income per share of approximately $0.87 to $0.92 on weighted-average diluted shares outstanding of approximately 185 million
- NoteNon-GAAP diluted net income per share of approximately $1.16 to $1.21 on weighted-average diluted shares outstanding of approximately 185 million
What drove it
- Q2 revenue strength reflects diversified growth across AI fabrics and signal conditioning.
- Broad-based portfolio strength included record quarterly revenue for the Aries product line.
- Q3 revenue inflection is expected to be driven by the Scorpio™ X-Series 320-lane fabric switch production ramp.
- New design wins across a broadening set of customers, optical interconnect expansion, and custom solutions were identified as additions to the growth opportunity in 2027 and beyond.
- The Taurus signal conditioning portfolio was expanded to include 3.2T Smart Retimers and Smart Redrivers for 224G Ethernet and UALink connectivity.
Concerns
- Q3 outlook is based on current business trends and conditions and depends on execution of the Scorpio X-Series 320-lane fabric switch production ramp.
- The filing states that forward-looking statements are subject to assumptions, beliefs, risks and uncertainties that could cause actual results to differ materially from expectations.
What to watch
- Whether Scorpio fabric switches become the largest product family in Q3, as management expects.
- Execution of the Scorpio X-Series 320-lane fabric switch production ramp.
- Revenue performance relative to the Q3 outlook range of $540 million to $560 million.
- GAAP and non-GAAP gross margin performance relative to approximately 72% Q3 outlook.
- Progress in optical interconnects, custom solutions, and new customer design wins.
Analysis
Astera Labs reported record Q2 revenue of $392.4 million, up 27% sequentially and up 104% year-over-year. Management attributed the growth to diversified strength across AI fabrics and signal conditioning, and specifically cited record quarterly revenue for the Aries product line. The reported growth rates indicate that demand expanded across the portfolio rather than being tied solely to one stated product category.
Profitability remained high in the reported period. GAAP gross margin was 73.3% and non-GAAP gross margin was 73.7%. GAAP operating income was $89.2 million, with a 22.7% operating margin, while non-GAAP operating income was $153.5 million and non-GAAP operating margin was 39.1%. GAAP net income was $153.1 million, or $0.83 per diluted share, and non-GAAP net income was $145.8 million, or $0.80 per diluted share.
The Q3 outlook calls for revenue of $540 million to $560 million, with approximately 72% GAAP and non-GAAP gross margin. Management identified the Scorpio X-Series 320-lane fabric switch production ramp as the driver of the expected Q3 revenue inflection and expects Scorpio fabric switches to become its largest product family. The guide also includes GAAP operating expenses of approximately $232 million to $236 million and non-GAAP operating expenses of approximately $156 million to $160 million.
Portfolio expansion remained a central part of the company narrative. Astera Labs introduced Taurus 3.2T Smart Retimers and Smart Redrivers for 224G Ethernet and UALink connectivity, demonstrated Scorpio X-Series 320 Lane Smart Fabric Switch technology, and highlighted optical connectivity, 200G/lane technology, COSMOS-enabled validation, and ecosystem interoperability. Management also described new design wins, optical interconnects, and custom solutions as contributors to its growth opportunity in 2027 and beyond.
Capital-return activity, cash balances, debt, operating cash flow, free cash flow, and detailed segment revenue were not included in the supplied filing text. The principal reported execution item is the Scorpio production ramp, because the Q3 revenue outlook and management's expectation for Scorpio to become the largest product family are directly linked to that ramp.
Management, verbatim
Astera Labs delivered outstanding Q2 2026 results, with record revenue of $392.4 million, up 27% sequentially and 104% year-over-year, driven by broad-based strength across our portfolio, including record quarterly revenue for our Aries product line.
Jitendra Mohan, Astera Labs’ Chief Executive Officer
We expect momentum to accelerate in Q3 as Scorpio fabric switches become our largest product family, one quarter ahead of our prior expectations.
Jitendra Mohan, Astera Labs’ Chief Executive Officer
Not in the filing
stated, not guessed- Detailed consolidated financial statements and reconciliations referenced as included below but not present in the supplied filing text
- Revenue prior-year dollar amount
- Revenue prior-quarter dollar amount
- Prior-year and prior-quarter values for gross margin, operating income, operating margin, net income, and diluted net income per share
- Segment revenue, segment growth rates, and segment profitability
- GAAP and non-GAAP operating expenses for Q2
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Share repurchases
- Dividends
- Prior-quarter outlook for comparison with actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.