Arista Networks Beats Estimates With $3.66 Billion Revenue, Up 58.5%

Arista Networks (NYSE: ANET) reported third-quarter revenue of $3.66 billion, above the $3.33 billion analysts expected, and adjusted diluted EPS of $1.20 against the $1.08 consensus estimate, in an 8-K filed Tuesday, Nov. 3.

Revenue growth and profit

Revenue rose 58.5% from the third quarter of 2025 and 20.5% from the second quarter of 2026. Product revenue was $3.19 billion and service revenue was $467.6 million. Non-GAAP operating margin was 49.1%, compared with 48.6% a year earlier.

GAAP net income was $1.56 billion, or $1.22 per diluted share, compared with $853.0 million, or $0.67, a year earlier. Chief Financial Officer Chantelle Breithaupt said the quarter set new record highs in revenue growth, net income and EPS.

Fourth-quarter guidance

For the fourth quarter of 2026, Arista expects revenue of $3.9 billion to $4.0 billion, against the $3.60 billion average analyst estimate for the period. The company guided to non-GAAP operating margin of 48% to 49% and non-GAAP diluted EPS of $1.26 to $1.30, compared with the $1.15 consensus estimate.

For the full year, analysts expected revenue of $12.68 billion and adjusted EPS of $4.12. Revenue for the first nine months of 2026 totaled $9.40 billion.

Product and company updates

Arista announced open Ethernet rack-scale architectures for scale-up and scale-out AI fabrics, including the Etherlink SU-144 architecture, and detailed a scale-across strategy built around the Arista 7800 AI Spine. The company was added to the S&P 100 in September 2026.

The cash flow statement shows no repurchases of common stock in the first nine months of 2026, compared with $983.0 million a year earlier.