Astera Labs (NASDAQ:ALAB) Posts Earnings Results, Beats Estimates By $0.07 EPS

Astera Labs (NASDAQ:ALAB) posted its quarterly earnings results on Tuesday. The company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.51 by $0.07, FiscalAI reports. Astera Labs had a return on equity of 13.48% and a net margin of 27.50%.The company had revenue of $270.58 million during the quarter, compared to the consensus estimate of $249.46 million. During the same quarter in the prior year, the company earned $0.37 EPS. The firm’s quarterly revenue was up 91.8% compared to the same quarter last year. Astera Labs updated its Q1 2026 guidance to 0.530-0.540 EPS.

Here are the key takeaways from Astera Labs’ conference call:

• Astera reported strong financials with $270.6M in Q4 revenue (+17% QoQ, +92% YoY), FY2025 revenue of $852.5M (+115% YoY), and Q1 guidance of $286M–$297M with ~74% non‑GAAP gross margin and EPS of $0.53–$0.54.
• Multiple product ramps and design wins are driving growth: Scorpio P is in volume at lead customers, Scorpio X shipped pre‑prod and targets H2 2026 ramps, Aries PCIe‑6 retimers and Taurus 400G modules saw large YoY growth, and Leo CXL has a Microsoft/Intel/SAP program targeting production H2 2026.
• Astera filed a warrant agreement with Amazon issuing 3.3M warrants that could convert into up to $6.5B of product purchases if milestones are met, a strong commercial endorsement (the company warns vesting warrants will create a non‑cash accounting charge estimated to lower gross margins by ~2 pts/quarter once recognized).
• Management is significantly increasing R&D and headcount (including the Xscale acquisition, an acqui‑hire, and a new Israel design center) with Q1 non‑GAAP OpEx guided to $112M–$118M, indicating near‑term margin pressure to fund long‑term growth.
• Management says the addressable opportunity expanded markedly — estimating a company SAM of $25B (merchant scale‑up switching ~$20B by 2030) with public endorsements for UALink from AWS and AMD for 2027 and optical scale‑up deployments targeted around 2028.

Astera Labs Stock Performance

Shares of ALAB stock opened at $182.86 on Wednesday. The company has a market capitalization of $30.89 billion, a PE ratio of 164.74, a price-to-earnings-growth ratio of 2.56 and a beta of 1.50. Astera Labs has a 52-week low of $47.13 and a 52-week high of $262.90. The business’s fifty day moving average is $165.43 and its 200 day moving average is $174.63.

Astera Labs News Roundup

Here are the key news stories impacting Astera Labs this week:

• Positive Sentiment: Q4 results beat consensus — Astera reported $0.58 EPS (vs. ~$0.51 consensus) and record quarterly revenue of $270.6M, up sharply year-over-year with strong margins, showing accelerating top-line growth. Astera Labs Reports Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Raised Q1 guidance well above Street — management gave Q1 EPS guidance (~$0.53–$0.54) and revenue guidance ($286M–$297M) that are materially above consensus, signaling continued demand for scale-up AI connectivity. Astera Labs ALAB Q4 2025 Earnings Call Transcript
• Positive Sentiment: Strategic R&D expansion — the company opened an Israel design center to accelerate AI fabric and ASIC work, adding senior hires to support long‑term product roadmaps (positive for execution on next‑gen connectivity). Astera Labs opens Israel R&D centers
• Neutral Sentiment: Management tone and industry backdrop — CEO emphasized that “AI is still in its early innings,” reinforcing the company’s TAM thesis; broader analyst notes highlight strong AI infrastructure capex as a tailwind. These reinforce the long‑term bull case but don’t remove near‑term volatility. Astera Labs shares sink 10% as revenue comes up short of some expectations
• Negative Sentiment: Investor reaction and mixed expectations — despite beats and strong guidance, the stock sold off as some investors said revenue or other details fell short of higher street hopes and sentiment turned risk‑off into the close. Media coverage highlights the post‑print slide. Astera Labs stock drops despite solid Q4 results, guidance
• Negative Sentiment: CFO transition and insider selling — the company named a new CFO (Desmond Lynch) while the prior CFO moves to advisor; sizable recent insider sales and highlighted insider activity have likely added to near‑term investor caution. Astera Labs Reports Fourth Quarter and Full-Year 2025 Financial Results

Analyst Ratings Changes

A number of brokerages have weighed in on ALAB. BNP Paribas Exane initiated coverage on shares of Astera Labs in a research report on Thursday, November 20th. They set an “outperform” rating for the company. Stifel Nicolaus upped their price target on shares of Astera Labs from $185.00 to $200.00 and gave the company a “buy” rating in a research note on Wednesday, November 5th. Morgan Stanley reaffirmed an “overweight” rating and issued a $210.00 price objective on shares of Astera Labs in a report on Wednesday, December 3rd. JPMorgan Chase & Co. boosted their target price on shares of Astera Labs from $180.00 to $215.00 and gave the company an “overweight” rating in a report on Wednesday, November 5th. Finally, Roth Mkm raised their price target on Astera Labs from $200.00 to $225.00 and gave the stock a “buy” rating in a report on Wednesday, November 5th. Fourteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $194.28.

Insiders Place Their Bets

In other Astera Labs news, CEO Jitendra Mohan sold 90,459 shares of the firm’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $144.69, for a total value of $13,088,512.71. Following the sale, the chief executive officer owned 2,080,418 shares of the company’s stock, valued at $301,015,680.42. This trade represents a 4.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Sanjay Gajendra sold 90,459 shares of Astera Labs stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $144.69, for a total value of $13,088,512.71. Following the sale, the chief operating officer owned 1,599,750 shares of the company’s stock, valued at approximately $231,467,827.50. This trade represents a 5.35% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 576,936 shares of company stock worth $87,409,540. 12.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Astera Labs

A number of institutional investors have recently made changes to their positions in the stock. Vise Technologies Inc. lifted its holdings in shares of Astera Labs by 41.2% during the 4th quarter. Vise Technologies Inc. now owns 2,705 shares of the company’s stock worth $450,000 after acquiring an additional 789 shares during the last quarter. State of Wyoming raised its position in Astera Labs by 29.1% during the fourth quarter. State of Wyoming now owns 826 shares of the company’s stock valued at $137,000 after purchasing an additional 186 shares in the last quarter. TD Asset Management Inc lifted its stake in Astera Labs by 116.8% during the fourth quarter. TD Asset Management Inc now owns 24,534 shares of the company’s stock worth $4,081,000 after purchasing an additional 13,218 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Astera Labs by 81.8% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 600 shares of the company’s stock worth $100,000 after purchasing an additional 270 shares in the last quarter. Finally, CIBC Bancorp USA Inc. purchased a new position in shares of Astera Labs in the 3rd quarter worth about $1,819,000. Institutional investors own 60.47% of the company’s stock.

About Astera Labs

Astera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company’s product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.