Astera 2025 Q3 Earnings Record Net Income Surges 1300% as Profits Return

Astera Labs (ALAB) delivered a stunning turnaround in Q3 2025, reporting net income of $91.11 million—a 1300% increase from the $7.59 million loss in 2024 Q3—while revenue doubled to $230.57 million. The company exceeded earnings estimates and raised Q4 guidance, reflecting strong demand for AI infrastructure solutions.

Revenue

Astera’s total revenue surged 103.9% year-over-year to $230.57 million, driven by robust demand for its AI platform ramps and Scorpio fabric switches. The company also reported significant growth in signal conditioning and smart cable modules (SCM), with PCIe 6 adoption contributing to higher revenue.

Earnings/Net Income

, . . This marks a historic high for Q3 net income in three years, signaling a successful business transformation.

Post-Earnings Price Action Review

, . This outperformed the market significantly, demonstrating the stock’s strong post-earnings momentum. The backtest highlights the effectiveness of leveraging Astera’s earnings-driven rallies, suggesting investors adopt similar strategies to capitalize on its growth potential.

CEO Commentary

CEO highlighted record Q3 revenue driven by new AI platform ramps and Scorpio fabric switch design wins. He emphasized continued PCIe 6 momentum, growth in Taurus Ethernet SCMs, and the strategic acquisition of to advance rack-scale photonics. The CEO expressed optimism about AI infrastructure adoption and collaborative ecosystem efforts.

Guidance

For Q4 2025, , with GAAP and non-GAAP gross margins of ~75%. Operating expenses are expected to range between $85–90 million, . The guidance reflects confidence in sustained growth from AI infrastructure and photonics investments.

Additional News

Astera’s stock received a Zacks Rank #1 (Strong Buy), driven by favorable earnings estimate revisions. Institutional investors, including Sigma Planning Corp and Amalgamated Bank, increased stakes in Q2 2025, with Sigma acquiring 25,525 shares valued at $2.3 million. Meanwhile, , raising questions about ownership alignment. Analysts from Cowen, Needham, and Evercore raised price targets, .

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