Arista Networks stock gets boost from record Q3 and higher outlook
Published on 11/10/2026 at 13:00 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSGrowth and outlook strengthen
- Third-quarter revenue reached 3.66 billion US dollars, up 58.5% from a year earlier.
- Fourth-quarter revenue guidance stands at 3.9 billion to 4.0 billion US dollars.
- AI networking, enterprise demand and new rack-scale architectures remain central to the growth story.
Arista Networks reported record third-quarter growth on November 3, with revenue and profitability advancing sharply as demand for artificial intelligence infrastructure and enterprise networking remained strong. The company also lifted its near-term outlook, keeping execution against customer demand at the center of the investment case.
According to the company's third-quarter financial release, revenue for the period ended September 30 reached 3.66 billion US dollars. That was 20.5% above the second quarter and 58.5% above the year-earlier period, exceeding the company's prior guidance of 3.3 billion US dollars.
Margins and earnings advance
Arista's GAAP operating margin increased to 44.9% from 42.4% a year earlier. The non-GAAP operating margin rose to 49.1% from 48.6%. GAAP diluted earnings per share climbed to 1.22 US dollars from 0.67 US dollars, while non-GAAP diluted earnings per share reached 1.20 US dollars compared with 0.77 US dollars in the prior-year quarter.
Net income nearly doubled to 1.56 billion US dollars from 853.0 million US dollars. The company said the quarter set new records for revenue growth, net income and earnings per share. Chief Executive Officer Jayshree Ullal linked the performance to stronger relevance across customer sectors in the generative and agentic artificial intelligence market.
AI portfolio expands
Arista highlighted new open Ethernet rack-scale architectures for scale-up and scale-out AI fabrics, developed with partners including AMD, Arm, Broadcom, Meta, Microsoft and Qualcomm. The liquid-cooled portfolio includes an Etherlink SU-144 architecture designed to support up to 144 accelerators per rack in a single hop and to scale through cross-rack topologies.
The company also detailed its scale-across strategy for distributed AI fabrics. Its Arista 7800 AI Spine and EOS operating system are designed to support high-radix networks across geographically distributed data centers. The release further pointed to AI-driven software security work with Anthropic, Google and OpenAI, broadening the product story beyond switching hardware.
Higher fourth-quarter target
For the fourth quarter of 2026, Arista expects revenue of 3.9 billion to 4.0 billion US dollars. The company forecasts a non-GAAP operating margin of 48% to 49% and non-GAAP diluted earnings per share of 1.26 to 1.30 US dollars. The guidance excludes stock-based compensation, intangible asset amortization and other specified adjustments, so the non-GAAP figures are not directly interchangeable with GAAP results.
Arista Networks stock traded at 165.89 euros on Lang & Schwarz at 12:53 CET on Tuesday, November 10.
Arista Networks at a glance
- Company: Arista Networks, Inc.
- Ticker: ANET
- Primary exchange: New York Stock Exchange
- Latest quote: 165.89 euros on Lang & Schwarz, Tuesday, November 10, 2026, 12:53 CET
- Third-quarter revenue: 3.66 billion US dollars for the period ended September 30, 2026
- Fourth-quarter revenue outlook: 3.9 billion to 4.0 billion US dollars
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