Analysts expect Astera Labs to report Q1 2026 revenue of $292.5 million and adjusted EPS of $0.54, while the stock currently trades around $203.10, slightly above the average analyst price target of $199.74.
The primary story for this report is the anticipated compression of non-GAAP gross margins to roughly 74% as the product mix shifts toward higher-volume hardware solutions.
Investors are also closely monitoring the production ramp of the Scorpio X-Series switches and the continued momentum of the Aries retimer portfolio in AI data centers.
Despite recent top-line growth deceleration, the company remains a critical 'picks and shovels' play in the expanding AI infrastructure market, supported by strong hyperscaler relationships.