Astera Labs, Inc. Common Stock Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: Record $392.4 million, +27% sequentially from Q1 2026 and +104% year-over-year from Q2 2025. Broad-based growth across AI fabric and signal conditioning portfolios.
  • PCIe 6.0 Contribution: Over 50% of total revenue in Q2 (up from one-third in Q1), driven by Scorpio AI fabric switches and Aries retimers.
  • Non-GAAP Gross Margin: 73.7% (exceeded guidance of 73%).
  • Non-GAAP Operating Expenses: $135.8 million (+10% sequentially), reflecting roadmap investments.
  • Non-GAAP Operating Margin: 39.1% (+290 basis points from Q1).
  • Non-GAAP Net Income: $145.8 million.
  • Non-GAAP Diluted EPS: $0.80 (+30%+ from Q1).
  • Cash & Marketable Securities: $1.25 billion (+$68.5 million from Q1).

Key Business & Product Highlights

  • Scorpio family expected to become largest product line by revenue in Q3 (one quarter ahead of prior expectations). High-radix Scorpio X-Series entered volume production; shipping to multiple customers for scale-up applications. Scorpio P-Series expanding to hyperscalers and AI providers (pre-production ramps expected in 2027).
  • Aries retimers reached record quarterly revenue, fueled by PCIe 6.0 adoption in scale-up/scale-out AI and general-purpose platforms.
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Operator: Good afternoon. My name is Holly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Astera Labs Q2 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After management remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I will now turn the call over to Leslie Green, investor relations for Astera Labs. Leslie, you may begin. Leslie Green: Thank you, Holly, and good afternoon, everyone, and welcome to the Astera Labs second quarter 2026 earnings conference call. Joining us on the call today is Jitendra Mohan, Chief Executive Officer and Co-founder; Sanjay Gajendra, President and Chief Operating Officer and Co-founder; and Desmond Lynch, Chief Financial Officer. Before we get started, I would like to remind everyone that certain comments made in this call today may include forward-looking statements regarding, among other things, expected future financial results, strategies and plans, future operations, and the markets in which we operate. These forward-looking statements reflect management's current beliefs, expectations, and assumptions about future events, which are inherently subject to risks and uncertainties that are discussed in detail in today's earnings release
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