Arista Q3 revenue jumps 58.5% to $3.66 billion, guides Q4 to $3.9 billion

What Arista reported

Arista Networks (NYSE: ANET) reported third-quarter 2026 revenue of $3.66 billion on Nov. 3, 2026, up 58.5% from $2.31 billion in the third quarter of 2025. The company had guided to about $3.3 billion for the quarter. Chief executive Jayshree Ullal said it was the highest year-over-year revenue growth since Arista's initial public offering.^[1]

Product revenue rose 66.9% to $3.19 billion, and service revenue rose 17.9% to $467.6 million, based on the income statement in Arista's filing. Revenue was 20.5% higher than in the second quarter of 2026, the company said.^[1]

Non-GAAP diluted earnings per share were $1.20, compared with $0.77 a year earlier. Yahoo Finance consensus, as cited by AskTraders, was $1.08 from 26 analysts, which puts the result about 11% above expectations. Revenue was about 9.8% above the $3.33 billion consensus from 23 analysts.^[1][2]

GAAP diluted earnings per share were $1.22, higher than the non-GAAP figure because GAAP results include a $134.5 million gain on strategic investments that Arista excludes from non-GAAP results. GAAP net income was $1.56 billion, up 82.9% from $853.0 million.^[1][3]

Margins and the balance sheet

Non-GAAP operating margin was 49.1%, compared with 48.6% a year earlier. Non-GAAP gross margin fell to 64.0% from 65.2%, and GAAP gross margin fell to 63.6% from 64.6%, according to the filing's reconciliation tables.^[1]

Inventories were $3.21 billion on Sept. 30, 2026, up 42.8% from $2.25 billion on Dec. 31, 2025. Total deferred revenue, current and non-current combined, was $6.84 billion, up 27.3% from $5.37 billion. Both figures are computed from the balance sheet in the filing.^[1]

Arista held $2.29 billion in cash and $12.07 billion in marketable securities. Operating cash flow for the first nine months of 2026 was $3.98 billion, compared with $3.11 billion in the same period of 2025.^[1]

Fourth-quarter guidance and full-year outlook

Arista guided fourth-quarter revenue to $3.9 billion to $4.0 billion, non-GAAP operating margin to 48% to 49%, and non-GAAP diluted earnings per share to $1.26 to $1.30. The midpoint of the revenue range is 8.0% above third-quarter revenue.^[1]

AskTraders, citing Yahoo Finance, put the fourth-quarter consensus at $3.6 billion in revenue and $1.15 in earnings per share. The low end of Arista's ranges sits above the highest analyst estimates it cited, $3.8 billion and $1.22. The midpoint of Arista's revenue range is about 9.7% above the consensus. The Motley Fool described the guidance as a slowdown in sequential growth, from 20.5% in the third quarter to 7% to 9% in the fourth.^[1][2][3]

According to a transcript of the earnings call published by Investing.com, the chief financial officer said Arista raised its 2026 revenue guidance to $13.3 billion, the fourth increase this year. That figure is consistent with the filing: $9.40 billion in revenue for the first nine months plus the fourth-quarter range gives $13.3 billion to $13.4 billion.^[1][4]

Share price reaction

Arista shares closed at $169.91 on Nov. 3, up 3.5%, before the results were released, according to The Motley Fool. After-hours reports differ. AskTraders reported a gain of 6.7%, The Motley Fool about 8%, and Investing.com 12.1% to $190.46. The regular-session close and the reported after-hours prices will set the starting point for trading on Nov. 4.^[2][3][4]

What happens next

The release names AI networking as the main driver. Arista said it launched open Ethernet rack-scale architectures with AMD, Arm, Broadcom, d-Matrix, Meta, Microsoft and Qualcomm, including an Etherlink SU-144 design that supports up to 144 accelerators per rack. The Motley Fool flagged customer concentration as a risk. Arista has not yet announced the date of its fourth-quarter report, which will test the $3.9 billion to $4.0 billion forecast.^[1][3]