Astera Labs' first-quarter guidance drags down strong Q4 performance, stock price declines

LootboxPhobia · 2026-02-14T04:36:20+00:00

Astera Labs reports Q4 earnings surpass expectations, with earnings of $0.58 per share and revenue reaching a record $270.6 million, but the stock fell 4.8% due to guidance for the first quarter being below expectations. The company expects first quarter revenue to be between $286 million and $297 million and announced leadership changes.

LootboxPhobia

2026-02-14 04:36:20

Abstract generation in progress

Investing.com – Semiconductor connectivity solutions provider Astera Labs, Inc. (NASDAQ: ALAB), specializing in artificial intelligence infrastructure, announced better-than-expected Q4 results, but its stock fell 4.8% in after-hours trading on Tuesday as investors reacted negatively to the company’s guidance.

The company reported adjusted earnings of $0.58 per share for the fourth quarter, surpassing analysts’ expectations of $0.51. Revenue reached a record $270.6 million, up 17% quarter-over-quarter and 92% year-over-year.

Despite strong performance, Astera Labs’ first-quarter earnings guidance was $0.53-$0.54 per share, slightly above the consensus estimate of $0.52, but it apparently failed to impress investors who may have been expecting a more robust forecast given the company’s recent growth trajectory.

CEO Jitendra Mohan stated, “Astera Labs delivered strong financial results in the fourth quarter, with revenue increasing 17% quarter-over-quarter to a new record of $270.6 million, highlighting an excellent performance for fiscal 2025, with full-year revenue up 115% year-over-year.”

For fiscal 2025, Astera Labs reported revenue of $852.5 million, up 115% year-over-year, with adjusted earnings per share of $1.84. The company maintained strong profitability, with non-GAAP gross margin at 75.7% in the fourth quarter.

Astera Labs also announced leadership changes, with Desmond Lynch set to become Chief Financial Officer on March 2, 2026, replacing Mike Tate, who will transition to the role of Chief Executive Officer Strategic Advisor.

The company is expanding its product portfolio, launching the new Scorpio X series intelligent architecture solutions, and opening a new design center in Israel to accelerate the development of next-generation AI architectures. Astera Labs expects first-quarter revenue between $286 million and $297 million, with non-GAAP gross margin around 74%.

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