Astera Labs Earnings: Guidance and CFO Change

Astera Labs reported fourth-quarter results on Feb. 10, 2026, beating forecasts and issuing first-quarter guidance. The company also announced a CFO transition and disclosed an Amazon warrant agreement that could pressure near-term margins.

Quarter Results and Guidance

Astera Labs posted fourth-quarter 2025 revenue of $270.6 million, up 17% sequentially and 92% year-over-year, surpassing the consensus estimate of $240 million. This lifted full-year 2025 revenue to $852.5 million, a 115% increase from 2024. Non-GAAP diluted earnings per share reached $0.58 on 181.2 million diluted shares, beating the estimate of $0.43.

Non-GAAP gross margin declined 70 basis points sequentially to 75.7%, reflecting a shift in hardware mix. Non-GAAP operating margin fell 150 basis points to 40.2%. Operating expenses rose $16 million sequentially to $96 million, driven by research and development expansion, the Xscale acquisition, and an acqui-hire in Israel.

The company ended the quarter with $1.19 billion in cash, cash equivalents, and marketable securities, and generated $95.3 million in operating cash flow.

For the first quarter of fiscal 2026, Astera Labs forecast revenue between $286 million and $297 million, non-GAAP gross margin around 74%, operating expenses of $112 million to $118 million, and non-GAAP diluted EPS of $0.53 to $0.54 on approximately 184 million diluted shares.

CFO Transition and Amazon Warrants

Astera Labs disclosed an Amazon warrant agreement granting 3.3 million warrants with a seven-year term. These warrants are tied to tranche-based purchases of up to $6.5 billion in future products across smart fabric, signal conditioning, and optical categories. The company said the arrangement will cause a roughly two-point quarterly non-cash gross-margin impact as tranches are met, starting around the second quarter of 2026.

Chief Financial Officer Mike Tate will transition to a strategic-advisor role, and Desmond Lynch will become CFO effective March 2, 2026.

Product momentum supported the quarter’s upside. The Scorpio P-Series accounted for more than 10% of 2025 revenue and is shipping in volume. The Aries portfolio grew about 70% year-over-year, and Taurus expanded more than fourfold. Scorpio X-Series is scheduled for initial volumes in the first quarter of 2026, with a high-volume ramp in the second half of the year. Shipments to two additional U.S. hyperscalers are planned late in 2026, with meaningful revenue expected in 2027.

The company highlighted progress on Leo CXL, including a Microsoft-Intel-SAP partnership tied to Azure M-Series production in the second half of 2026. Management described a self-addressable market of about $25 billion over five years and outlined UALink ramps targeted for 2027, with optical scale-up around 2028.

The quarter’s results and guidance indicate accelerating revenue and earnings growth. However, the Amazon warrant arrangement and CFO transition introduce near-term margin and governance considerations that investors will weigh against the company’s longer-term product roadmap.