Astera Labs (NASDAQ:ALAB) Releases Q3 2025 Earnings Guidance

Key Points

• Astera Labs has issued an **earnings guidance** for Q3 2025, estimating EPS between **$0.380 to $0.390** and revenue between **$203.0 million to $210.0 million**, both exceeding consensus estimates.
• The company's stock experienced a **1.7% decline**, trading at **$135.54**, with a substantial volume of nearly **6.8 million shares** exchanged during midday trading.
• Astera Labs' insider CFO **Michael Truett Tate sold 500,000 shares** worth approximately **$45.1 million**, reflecting a **44.68% decrease** in their ownership of the stock.

Astera Labs (NASDAQ:ALAB - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.380-0.390 for the period, compared to the consensus earnings per share estimate of 0.337. The company issued revenue guidance of $203.0 million-$210.0 million, compared to the consensus revenue estimate of $180.7 million.

Astera Labs Trading Up 28.4%

ALAB traded up $38.46 on Wednesday, hitting $174.00. 15,560,949 shares of the stock traded hands, compared to its average volume of 4,920,206. Astera Labs has a 52 week low of $36.22 and a 52 week high of $183.62. The firm has a market capitalization of $28.70 billion, a PE ratio of 797.52, a P/E/G ratio of 6.47 and a beta of 1.39. The business has a fifty day moving average price of $101.12 and a two-hundred day moving average price of $86.12.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.11. Astera Labs had a return on equity of 2.57% and a net margin of 8.44%. The firm had revenue of $191.93 million for the quarter, compared to analyst estimates of $172.46 million. During the same period in the previous year, the company posted $0.13 earnings per share. The company's quarterly revenue was up 149.5% compared to the same quarter last year. On average, equities research analysts forecast that Astera Labs will post 0.34 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Stifel Nicolaus set a $145.00 price target on shares of Astera Labs and gave the stock a "buy" rating in a research note on Monday. Jefferies Financial Group raised their price target on shares of Astera Labs from $95.00 to $130.00 and gave the stock a "buy" rating in a research note on Tuesday, July 22nd. Morgan Stanley raised their price target on shares of Astera Labs from $125.00 to $155.00 and gave the stock an "overweight" rating in a research note on Wednesday. Citigroup cut their price target on shares of Astera Labs from $120.00 to $100.00 and set a "buy" rating for the company in a research note on Monday, April 14th. Finally, William Blair assumed coverage on shares of Astera Labs in a research note on Thursday, May 22nd. They set an "outperform" rating for the company. Four research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $120.80.

Insider Transactions at Astera Labs

In other Astera Labs news, CFO Michael Truett Tate sold 500,000 shares of the business's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $90.23, for a total value of $45,115,000.00. Following the completion of the transaction, the chief financial officer directly owned 618,996 shares of the company's stock, valued at approximately $55,852,009.08. The trade was a 44.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Sanjay Gajendra sold 165,000 shares of the business's stock in a transaction dated Thursday, May 8th. The stock was sold at an average price of $71.76, for a total transaction of $11,840,400.00. Following the completion of the transaction, the insider directly owned 755,000 shares of the company's stock, valued at approximately $54,178,800. This represents a 17.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 2,181,759 shares of company stock valued at $200,883,431 in the last three months.

Hedge Funds Weigh In On Astera Labs

A number of institutional investors have recently modified their holdings of ALAB. Royal Bank of Canada raised its stake in shares of Astera Labs by 167.3% in the first quarter. Royal Bank of Canada now owns 152,453 shares of the company's stock worth $9,097,000 after acquiring an additional 95,409 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of Astera Labs by 213.4% in the first quarter. AQR Capital Management LLC now owns 11,391 shares of the company's stock worth $680,000 after acquiring an additional 7,756 shares during the last quarter. Finally, Empowered Funds LLC raised its stake in shares of Astera Labs by 917.3% in the first quarter. Empowered Funds LLC now owns 4,639 shares of the company's stock worth $277,000 after acquiring an additional 4,183 shares during the last quarter. 60.47% of the stock is owned by institutional investors.

Astera Labs Company Profile

Astera Labs, Inc designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale.