Astera Labs (ALAB) earnings report Q4 2025
Astera Laboratories reported in the fourth quarter earning it ranked both at the top and bottom, but shares fell as much as 10% as revenue fell short of some analysts’ expectations.
Here’s how the AI infrastructure and semiconductor company is performing compared to LSEG consensus estimates:
- Earnings per share: 51 cents expected versus 58 cents
- Revenues: 271 million dollars, while the expectation was 250 million dollars
Revenue increased 92% year over year in the fourth quarter. However, some analysts expected the company to report revenue of more than $280 million for the period.
Astera Labs reported net income of $45 million for the quarter; this was up 82% from $24.7 million the previous year. The company said it expects first-quarter revenue to be between $286 million and $297 million, above Wall Street expectations of $259 million.
“We founded the company eight years ago to really serve the cloud and AI infrastructure space,” Astera Labs CEO Jitendra Mohan told CNBC on Tuesday. he said. “And fortunately for us, the field is on fire.”
Mohan attributed the decline in earnings to growth in Scorpio fabric switch and Taurus ethernet cables, which collectively accounted for 30% of total revenue.
“Increasingly, the bottleneck is shifting from compute to connectivity, and connectivity is where we play,” Mohan said. “So this gives us a lot of opportunity to continue to grow and exceed the overall market growth rate in the AI space.”
Alongside its earnings reporting, the company also announced that finance chief Mike Tate would resign. Desmond Lynch, currently chief financial officer at semiconductor company RambusHe will replace Tate from March 2. Tate will remain at Astera Labs as strategic advisor to the CEO.
Additionally, Astera Labs said it issued a new order on Tuesday. Amazon It will purchase approximately $466 million of the chip company’s shares. Amazon owned $43 million worth of Astera Labs stock as of Dec. 31, according to a regulatory filing.
Astera Laboratories also announced A research and development center in Israel on Monday.
“We are really in a bottleneck due to availability of resources more than anything else,” Mohan said. “Therefore, opening a design center in Israel is a step towards accessing the existing talent pool.”
Astera Labs was founded in 2017 by former executives at Texas Instruments. The company went public in 2024 and signed deals with the following companies: Nvidia, AMD, Intel And Amazon as customers of its chips.
— CNBC’s Jordan Novet contributed to this report
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