Arista Networks grows revenue 58.5%, its fastest pace since its IPO
Arista Networks grew revenue 58.5% to $3.66 billion in the quarter ended September 30, 2026, 7.7% above analysts' forecasts. Adjusted earnings per share of $1.20 beat the $1.10 expected. The CEO credited strong momentum across customer sectors in the AI era.
The results
Q3 2026
+9.3%
Adj. earnings
+7.7%
Revenue
+5.0%
The stock
Adjusted earnings per share
Expected $1.10
$1.20
Revenue
Expected $3.4B
$3.66B
What the company expects
For the fourth quarter of 2026, Arista expects revenue of $3.9 to $4.0 billion, a non-GAAP operating margin of 48% to 49%, and non-GAAP earnings per share of $1.26 to $1.30.
Results for Q3 2026, released on November 3, after the close. Expected: average of analysts' forecasts. Earnings per share under GAAP accounting rules: $1.22.
Who holds it
AI analysis
Nov 3
What drove the quarter
Fastest revenue growth since the IPO
Revenue grew 58.5% from a year earlier to $3.66 billion in the quarter ended September 30, 2026. The company had guided to $3.3 billion, and analysts expected about $3.4 billion, so it beat both.
Operating margin up, gross margin down
The non-GAAP operating margin, the share of revenue left after running costs, rose to 49.1% from 48.6% a year earlier. The GAAP gross margin, what remains after the cost of making its products, slipped to 63.6% from 64.6%.
What it changes
Guidance points higher again
Arista expects fourth-quarter revenue of $3.9 to $4.0 billion and non-GAAP earnings per share of $1.26 to $1.30, above the $1.20 of this quarter. That would mean another quarter of growth, if the company delivers it.
What it does not say
One good session after a hard month
The stock rose 5% to $178.48 on November 4, 2026, but it had fallen 20.8% in the month before in a selloff of AI stocks. On November 2 it traded at 51.1 times earnings, so investors already expect a lot of growth.
Risks the release itself names
The release warns that a limited number of large customers make up a substantial part of revenue and that some key parts come from sole or limited suppliers. One strong quarter does not remove those risks.
Analysis written by an AI from public data. It is not investment advice.