Astera Labs, Inc. Common Stock

Astera Labs reported Q2 non-GAAP revenue of $392.4 million, up 27% sequentially and up 104% year over year. Non-GAAP gross margin was 73.7% versus guidance of 73%, non-GAAP operating expenses were $135.8 million, and non-GAAP operating margin was 39.1%, up 290 basis points from Q1. Non-GAAP net income was $145.8 million and non-GAAP diluted EPS was $0.80, more than 30% above Q1. Cash, cash equivalents and marketable securities totaled $1.25 billion. For Q3, the company guided revenue to $540 million-$560 million, non-GAAP gross margin to approximately 72%, operating expenses to $156 million-$160 million, operating margin to approximately 43%, and non-GAAP diluted EPS to $1.16-$1.21.

Jitendra Mohan emphasized that AI infrastructure spending is accelerating and that Astera’s role in intelligent connectivity is expanding with it. He highlighted Scorpio X volume production, saying the Scorpio family is expected to become the company’s largest product category in Q3, one quarter earlier than previously expected. He also framed recent design wins in Taurus, Leo, and optical/custom solutions as evidence of a broader platform strategy called “AI Your Way,” with more customer architectures and protocols opening up over time.

Desmond Lynch focused on broad-based revenue strength, led by Scorpio X production ramp and strong PCIe 6.0 adoption. He noted Q2 non-GAAP gross margin of 73.7%, operating expenses of $135.8 million, operating margin of 39.1%, and EPS of $0.80, while cash and marketable securities ended at $1.25 billion. For Q3, he guided to approximately 72% gross margin, $156 million-$160 million in operating expenses, about 43% operating margin, and EPS of $1.16-$1.21, and said long-term gross margins should trend toward 70% as the portfolio diversifies.

Analysts pressed on the timing and breadth of Scorpio X ramps, including whether the lead hyperscaler would be joined by additional customers and when Scorpio X revenue would overtake Scorpio P. Management said multiple customers are already in pre-production, the lead customer should ramp to high-volume production in Q3, and more customers should convert by year-end. Questions also focused on Aries growth, UALink adoption, CXL opportunity, optics, and China exposure; management said Aries demand is being supported by PCIe 6.0 and new inference use cases, UALink interest is strong, CXL is seeing renewed traction, optical deployment should start with NPO in 2027, and China remains a single-digit percentage of revenue.