$ANET · Arista Networks, Inc.
Arista Networks reported Q3 2026 revenue of $3.658B, up 58.5% YoY and well above its $3.3B guidance. GAAP diluted EPS was $1.22; non-GAAP diluted EPS was $1.20. The company guided Q4 2026 revenue to $3.9-$4.0B with non-GAAP EPS of $1.26-$1.30.
- Revenue of $3.658B beat guidance of $3.3B by ~$360M and grew 58.5% YoY — the highest since IPO.
- GAAP diluted EPS of $1.22 vs. $0.67 in Q3 2025; non-GAAP diluted EPS of $1.20 vs. $0.77 a year ago.
- GAAP operating margin expanded to 44.9% from 42.4% YoY; non-GAAP operating margin reached 49.1%.
- Q4 2026 guidance: revenue $3.9-$4.0B, non-GAAP operating margin 48-49%, non-GAAP EPS $1.26-$1.30.
- Net income hit a record $1.56B for the quarter; nine-month operating cash flow reached $3.98B.
Extended-hours trading shows ANET at $184.96, up 8.86% from the regular close of $169.91, reflecting strong positive reaction to the massive revenue beat and raised guidance.
Arista's highest post-IPO revenue growth rate, a $360M guidance beat, and a Q4 guide implying ~$4B quarterly run-rate cement its position as a core AI-infrastructure winner.
Arista's 58.5% YoY growth and open Ethernet AI rack-scale architecture launch with AMD, Broadcom, Meta, and Microsoft partners positions it as a primary beneficiary of hyperscale AI infrastructure buildout, rivaling traditional InfiniBand ecosystems.
Forward-looking risks flagged include reliance on a predominant merchant silicon vendor, key component supply constraints, large customer concentration, and escalating U.S. tariffs with retaliatory countermeasures.