Why Astera Labs Stock Tumbled on Wednesday?

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Why Astera Labs Stock Tumbled on Wednesday?

Nauman Khan

Thu, February 12, 2026 at 10:55 PM GMT+9 1 min read

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ALAB

-21.41%

This article first appeared on GuruFocus.

Astera Labs (NASDAQ:ALAB) shares plunged about 20% on Wednesday even as the chip connectivity company posted stronger fourth-quarter results and capped a year of sharp revenue growth.

Astera Labs stock fell as investors focused on concerns about potential margin pressure and the unexpected transition of its chief financial officer, overshadowing the company’s stronger-than-expected fourth-quarter earnings and revenue results, as fears about profitability and leadership changes triggered a wave of selling despite upbeat guidance.

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Revenue for the fourth quarter of fiscal 2025 rose 17% sequentially to a record $270.6 million. The figure was up 92% from a year earlier.

GAAP gross margin was 75.6% in the quarter. Operating income totaled $67.0 million, with an operating margin of 24.7%. Net income came in at $45.0 million, or $0.25 per diluted share.

On a non-GAAP basis, which excludes items such as stock-based compensation, operating income was $108.9 million. Non-GAAP diluted earnings per share were $0.58.

For the full fiscal year, revenue climbed 115% year over year to $852.5 million. GAAP net income reached $219.1 million, or $1.22 per diluted share.

Astera Labs said customer demand for its intelligent connectivity products continues to expand across multiple applications. The company is increasing research and development spending and plans to open a new design center in Israel.

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