Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 4, 2026 · Beat 7 of last 7 quarters
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Astera Labs' record quarter and strong guidance underscore the accelerating AI infrastructure buildout, with hyperscaler spending projected to reach trillion-dollar levels by 2027. The rapid ramp of Scorpio X-Series scale-up switches and PCIe 6 adoption highlight the critical role of intelligent connectivity in enabling larger XPU clusters and higher bandwidth, directly supporting the expansion of AI data centers.
Astera Labs delivered record Q2 revenue of $392.4M, up 27% sequentially and 104% YoY, with broad-based strength across Aries, Taurus, and Scorpio. PCIe 6 products exceeded 50% of revenue, and Scorpio X-Series entered volume production, driving strong growth. Aries set a new quarterly record, Taurus grew on 800G pre-production shipments, and the company closed a new Leo CXL design win with a U.S. hyperscaler. Non-GAAP gross margin came in at 73.7%, and operating margin expanded to 39.1%, with EPS of $0.80.
Management guided Q3 revenue to $540-$560M, representing ~40% sequential growth at the midpoint, driven by Scorpio X-Series volume production, continued Aries PCIe 6 strength, and initial Taurus 800G shipments. They expect Scorpio to become the largest product line in Q3, one quarter ahead of plan. Q3 non-GAAP gross margin is guided to ~72%, with operating margin expanding to ~43% (up 400 bps sequentially). The company reiterated confidence in sustained growth into 2027, with Scorpio X-Series expanding to additional customers by year-end, UALink-enabled Scorpio X Series scale-up switches on track for 2027, and NPO chipsets targeted for 2027 production. Management also highlighted a growing content opportunity per XPU, with Scorpio X alone expected to exceed $1,000 per XPU in future generations.
“We expect Scorpio to become our largest product family in Q3, which is one quarter ahead of our prior expectations, marking an important strategic milestone.”
on Scorpio ramp
“We are now shipping multiple configurations of Scorpio X-Series into scale-up applications to our initial customers, we remain on track to ship Scorpio X-Series to additional customers by year-end.”
on Scorpio X customer expansion
“We expect the content opportunity for Scorpio X series solutions alone to grow well beyond $1,000 per XPU in future generations of AI platforms.”
on Content per XPU
With Scorpio X ramping in Q3, is Scorpio X revenue going to exceed Scorpio P this quarter, and do you have another hyperscaler ramping lower-rate X products?
Sanjay confirmed Q3 will see the lead customer ramp to high-volume production, with Scorpio X surpassing Scorpio P revenue. Additional customers are shipping pre-production now, with revenue expected by year-end.
What drove the record Aries revenue, and what is the design traction for retimer attach in next-gen AI servers?
Sanjay cited continued Gen 5 growth from inference applications and strong Gen 6 adoption with higher attach rates and new platforms. Jitendra added that Gen 6 platforms are still being developed, and the cycle will continue into Gen 7.
Can you talk about the UALink roadmap and the transition from PCIe to UALink?
Jitendra noted strong ecosystem interest in UALink for scale-up, driven by throughput and latency benefits, especially for inference. They plan to intercept 2027 XPUs with a full portfolio of UALink switches and signal conditioning, expecting higher dollar content per XPU.