Astera Labs Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Fall

Astera Labs ALAB reported fourth-quarter 2025 non-GAAP earnings of 58 cents per share, surpassing the Zacks Consensus Estimate by 12.75%. The company reported earnings of 37 cents per share in the year-ago quarter.

Net revenues surged 91.8% year over year to $270.6 million, surpassing the Zacks Consensus Estimate by 8.33%. Growth was driven by new AI platform ramps featuring multiple product families.

ALAB shares plunged 11.85% in pre-market trading.

ALAB’s Operating Details

The non-GAAP gross margin was 75.7%, contracting 160 basis points year over year.

Astera Labs, Inc. Price, Consensus and EPS Surprise

Astera Labs, Inc. price-consensus-eps-surprise-chart | Astera Labs, Inc. Quote

Research and development expenses surged 65.9% year over year to $93.8 million. 

Sales and marketing expenses decreased 11.9% year over year to $20.1 million. General and administrative expenses increased 6.8% year over year to $23.6 million.

The non-GAAP operating margin was 40.2% compared with 34.3% in the year-ago quarter.

ALAB’s Balance Sheet Details

As of Dec. 31, 2025, cash and cash equivalents and marketable securities were $1.18 billion compared with $1.13 billion as of Sept. 30, 2025.

ALAB’s Q1 Guidance

Astera Labs expects first-quarter 2026 revenues between $286 million and $297 million. 

Non-GAAP gross margin is expected to be roughly 74%. Non-GAAP operating expenses are expected to be between $112 million and $118 million.

Earnings are expected to be between 53 cents and 54 cents per share for the first quarter.

ALAB’s 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, Applied Materials AMAT, and MKS MKSI. While MKSI sports a Zacks Rank #1 (Strong Buy), Analog Devices and Applied Materials carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices’ shares have gained 60.3% in the past 12-month period. Analog Devices is scheduled to release first-quarter 2026 results on Feb. 18, 2026.

Applied Materials shares have returned 79.8% in the past 12-month period. AMAT is scheduled to release its first-quarter 2026 results on Feb. 12, 2026. 

MKS shares have gained 127.7% in the past 12-month period. MKS is set to report its fourth-quarter 2025 results on Feb. 17, 2026.

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This article originally published on Zacks Investment Research (zacks.com).

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