$ANET · Arista Networks, Inc.
Arista Networks filed its Q3 FY2026 10-Q, reporting revenue of $3.658B, up 58.5% YoY from $2.308B, driven by product revenue of $3.19B (+66.9%). Net income rose to $1.56B from $853M, with diluted EPS of $1.22 versus $0.67. Gross margin declined to 63.6% from 64.6%, while operating margin reached 44.9%. Nine-month revenue hit $9.40B (+44.3%) and net income $3.80B.
- Q3 revenue $3.658B, up 58.5% YoY; product revenue +66.9% to $3.19B.
- Net income $1.56B vs $853M; diluted EPS $1.22 vs $0.67.
- Gross margin fell to 63.6% from 64.6% on supply-chain and memory/silicon cost pressure.
- Operating margin 44.9%; nine-month revenue $9.40B, up 44.3%.
- No share repurchases in 2026; $817.9M remaining under the $1.5B buyback authorization.
Shares jumped 12.54% in extended trading to $191.22 after the report, signaling strong investor approval of the revenue acceleration despite the margin dip.
Arista delivered explosive 58.5% revenue growth with EPS nearly doubling, confirming AI networking demand while flagging margin pressure.
Arista's 58.5% growth underscores AI-driven networking demand, outpacing peers as hyperscaler capex flows into Ethernet switching and routing.
Supply-chain inflation and material scarcity in memory and silicon are compressing gross margin; tariff escalation or inability to pass costs to customers could further pressure margins.