Arista (ANET) Earnings Show Revenue Up 58.5%, Fastest Since Its IPO
Arista Networks (ANET) said its revenue rose 58.5% to about $3.66 billion in the third quarter of 2026, its fastest growth since it went public. Sales beat Arista's own forecast by about $358 million, the widest gap in at least ten quarters, and growth has now sped up four quarters in a row.
The short answer. Arista makes the switches that link computers inside big data centers, and its sales are growing faster each quarter. Anyone who uses an AI chatbot or a cloud app relies on networks like these, so Arista shows how hard the companies behind them keep building. Products made up about 95% of the extra sales from a year earlier, and Arista expects $3.9 billion to $4.0 billion of sales in the fourth quarter.
Show the data
| Category | Revenue growth from a year earlier | Note |
|---|---|---|
| Q1 2022 | 31.4% | |
| Q2 2022 | 48.7% | |
| Q3 2022 | 57.2% | 57.2%, the earlier peak |
| Q4 2022 | 54.7% | |
| Q1 2023 | 54.1% | |
| Q2 2023 | 38.7% | |
| Q3 2023 | 28.3% | |
| Q4 2023 | 20.8% | |
| Q1 2024 | 16.3% | |
| Q2 2024 | 15.9% | |
| Q3 2024 | 20.0% | |
| Q4 2024 | 25.3% | |
| Q1 2025 | 27.6% | |
| Q2 2025 | 30.4% | |
| Q3 2025 | 27.5% | |
| Q4 2025 | 28.9% | |
| Q1 2026 | 35.1% | |
| Q2 2026 | 37.7% | |
| Q3 2026 | 58.5% | 58.5%, the fastest in the series |
Arista Networks third quarter 2026 results at a glance
On this page
- Arista (ANET) earnings for the third quarter of 2026
- ANET stock after the earnings release
- Arista revenue growth by quarter since 2022
- Arista revenue against its own forecast
- Arista profit and gross margin
- Arista's AI networking business and its biggest customers
- Arista guidance for the fourth quarter
- Arista inventory and deferred revenue
- Does Arista pay dividends or buy back shares?
- Frequently asked questions
Every company reporting the same week, with its date and time, is in StockTitan's Earnings Calendar for the Week of November 2, 2026.
Arista (ANET) earnings for the third quarter of 2026
Arista sold about $3.66 billion of network gear and services from July to September 2026. That is 58.5% more than a year earlier, and the company says it is its best growth rate since its IPO.
In August, the company had forecast about $3.3 billion for the quarter. It came in well above its own forecast, and sales also grew 20.5% from the second quarter of 2026.
Chief executive Jayshree Ullal said the quarter brought "the highest year-over-year revenue growth since our IPO and record profitability, surpassing even my high expectations." She tied the momentum to what she called Arista's "increased relevance for the generative and agentic AI era."
About 95% of the extra sales came from products, the switches and routers themselves. Product revenue was $3.19 billion, against $1.91 billion a year earlier.
Service revenue, which covers support contracts, rose more slowly, to $467.6 million. In the same quarter, Arista and partners such as Meta and Microsoft launched new rack designs for AI networks, covered in the section on its AI business below.
The figures come from the results release, which Arista also filed with the SEC on the same day.
| Revenue | Q3 2026 | Q3 2025 | First nine months 2026 | First nine months 2025 |
|---|---|---|---|---|
| Product | $3,190.0 million | $1,911.7 million | $8,106.5 million | $5,481.2 million |
| Service | $467.6 million | $396.6 million | $1,295.8 million | $1,036.7 million |
| Total revenue | $3,657.6 million | $2,308.3 million | $9,402.3 million | $6,517.9 million |
Source: Arista Networks third quarter 2026 results release, condensed consolidated income statements, unaudited, November 3, 2026.
ANET stock after the earnings release
Arista shares jumped in after-hours trading. They traded at $184.50 at 4:32 p.m. ET on November 3, 2026, about 8.7% above the price at the bell.
The shares had changed hands at $169.73 in the last minute before the 4:00 p.m. close. After the release came out at 4:05 p.m., they reached as high as $185.90.
After-hours trading is thinner than the regular session, so prices can swing more. The next regular session opens at 9:30 a.m. ET on November 4. These prices come from StockTitan real-time Nasdaq data.
Arista revenue growth by quarter since 2022
Arista's growth has sped up for four quarters in a row. It went from 27.5% a year ago to 58.5% now, the fastest of any quarter in its releases back to 2022.
Show the data
| Category | Value |
|---|---|
| Q4 2022 | $1.28B |
| Q1 2023 | $1.35B |
| Q2 2023 | $1.46B |
| Q3 2023 | $1.51B |
| Q4 2023 | $1.54B |
| Q1 2024 | $1.57B |
| Q2 2024 | $1.69B |
| Q3 2024 | $1.81B |
| Q4 2024 | $1.93B |
| Q1 2025 | $2.01B |
| Q2 2025 | $2.21B |
| Q3 2025 | $2.31B |
| Q4 2025 | $2.49B |
| Q1 2026 | $2.71B |
| Q2 2026 | $3.04B |
| Q3 2026 | $3.66B |
A year ago, in the third quarter of 2025, sales grew 27.5%. Growth then rose in each of the next three quarters before this quarter's jump to 58.5%.
The company's own releases back to 2022 show how rare that is. The closest was 57.2% in the third quarter of 2022, when sales were $1.18 billion. Quarterly sales are about three times that size now.
Arista added about $1.35 billion of quarterly sales in a year, more than it sold in any quarter of 2022.
Show the data
| Quarter | Revenue | Growth from a year earlier |
|---|---|---|
| Q3 2022 | $1.177 billion | 57.2% |
| Q3 2023 | $1.509 billion | 28.3% |
| Q3 2024 | $1.811 billion | 20.0% |
| Q3 2025 | $2.308 billion | 27.5% |
| Q4 2025 | $2.488 billion | 28.9% |
| Q1 2026 | $2.709 billion | 35.1% |
| Q2 2026 | $3.036 billion | 37.7% |
| Q3 2026 | $3.66 billion | 58.5% |
Source: Arista Networks quarterly results releases, Q3 2022 to Q3 2026, revenue and growth as each release states them; the full quarterly series is in the charts.
Arista revenue against its own forecast
Arista beat its own sales forecast by about $358 million, or 10.8%. That is the widest gap in the ten quarters since the second quarter of 2024.
Show the data
| Item | Forecast, top of range | Actual revenue | Change |
|---|---|---|---|
| Q2 2024 | $1.650B | $1.690B | +$0.040B |
| Q3 2024 | $1.750B | $1.811B | +$0.061B |
| Q4 2024 | $1.900B | $1.930B | +$0.030B |
| Q1 2025 | $1.970B | $2.005B | +$0.035B |
| Q2 2025 | $2.100B | $2.205B | +$0.105B |
| Q3 2025 | $2.250B | $2.308B | +$0.058B |
| Q4 2025 | $2.400B | $2.488B | +$0.088B |
| Q1 2026 | $2.600B | $2.709B | +$0.109B |
| Q2 2026 | $2.800B | $3.036B | +$0.236B |
| Q3 2026 | $3.300B | $3.658B | +$0.358B |
Each quarter, Arista says how much it expects to sell in the next one. In August 2026 it said about $3.3 billion for the third quarter, in its second quarter release.
It has topped that number in each of the last ten quarters. From mid-2024 through 2025 the gap was small, between $30 million and $105 million.
The gap has grown each quarter since. It reached $109 million in the first quarter of 2026 and $236 million in the second.
Profit beat the forecast too. On its adjusted basis, which leaves out stock pay and some other items, Arista expected earnings of up to $1.08 a share and reported $1.20.
Arista profit and gross margin
Arista earned a record $1.56 billion in the quarter, against $853.0 million a year earlier. Its gross margin was lower than a year ago but rose for a second quarter in a row.
Earnings per share rose to $1.22 from $0.67 under standard accounting rules (GAAP). On the company's adjusted basis, which leaves out stock pay for employees and some other items, they rose to $1.20 from $0.77.
The adjusted figure is lower than the standard one this time. Part of the reason is a $134.5 million gain on its stakes in other companies, which Arista calls strategic investments. The gain counts in the standard figure and is removed from the adjusted one.
Running costs grew about 33%, much less than sales. So operating margin, the share of revenue left after those costs, rose to 44.9% from 42.4%. Spending on research and development rose to $486.9 million from $326.0 million.
Gross margin, the share left after the cost of making the gear, was 63.6%, down from 64.6% a year earlier. It had fallen to 61.9% in the first quarter of 2026 and has climbed since.
The release gives no reason for the third quarter margin. In its quarterly report for the second quarter, Arista tied its lower margin mainly to more sales to large customers, who "generally receive higher discounts." It also named rising costs for memory and silicon parts.
Show the data
| Measure | Q3 2026 | Q3 2025 |
|---|---|---|
| Gross profit (GAAP) | $2,325.7 million | $1,490.2 million |
| Gross margin (GAAP) | 63.6% | 64.6% |
| Gross margin (non-GAAP) | 64.0% | 65.2% |
| Income from operations (GAAP) | $1,642.4 million | $978.2 million |
| Operating margin (GAAP) | 44.9% | 42.4% |
| Operating margin (non-GAAP) | 49.1% | 48.6% |
| Net income (GAAP) | $1,560.4 million | $853.0 million |
| Net income (non-GAAP) | $1,530.8 million | $979.4 million |
| Diluted earnings per share (GAAP) | $1.22 | $0.67 |
| Diluted earnings per share (non-GAAP) | $1.20 | $0.77 |
Source: Arista Networks third quarter 2026 results release, income statements and GAAP to non-GAAP reconciliation, unaudited. Prior period non-GAAP figures are as recast by the company for its updated tax method. GAAP gross margin by quarter: 62.9% in Q4 2025, 61.9% in Q1 2026 and 62.9% in Q2 2026, from the fourth quarter 2025, first quarter 2026 and second quarter 2026 releases.
Arista's AI networking business and its biggest customers
Arista builds the networks that link the chips inside AI data centers. Two customers bought 42% of everything it sold in 2025, so a small number of buyers account for a large share of its sales.
Arista describes itself as a leader in networking for "large AI, data center, campus, and routing environments." Its switches and routers bring in most of its product revenue.
Its annual report for 2025 says two customers made up 26% and 16% of revenue that year. It does not name them. It calls its largest buyers "Cloud and AI Titans."
During the quarter, Arista and partners including AMD, Arm, Broadcom, d-Matrix, Meta, Microsoft and Qualcomm launched open designs for whole racks of AI gear. One of them, the Etherlink SU-144, links up to 144 AI chips in one rack.
Arista also laid out how its 7800 AI Spine switches and its EOS operating software can tie together AI clusters spread across several data centers. It said such networks could reach up to one million chips. Arista also said it works with Anthropic, Google and OpenAI on AI tools that find flaws in its own software sooner.
Arista guidance for the fourth quarter
Arista expects $3.9 billion to $4.0 billion of revenue from October to December 2026. That would keep growth close to this quarter's pace.
Arista sold $2.49 billion in the last three months of 2025. Against that, the range means growth of about 57% to 61%.
If Arista lands in its range, 2026 sales would reach about $13.3 billion to $13.4 billion. That would be up about 48% to 49% from 2025, when sales grew 28.6%.
For the fourth quarter, Arista also expects an adjusted operating margin of 48% to 49%. It expects adjusted earnings of $1.26 to $1.30 a share, against $1.20 in the third quarter.
The adjusted figures leave out stock pay, the cost of past acquisitions spread over time and some tax effects. Arista says it cannot give the matching standard figures ahead of time, because those items are hard to predict.
Arista inventory and deferred revenue
Arista's inventory rose by $674.5 million in the third quarter alone, more than twice the rise of the whole first half of 2026. Its deferred revenue barely moved.
Show the data
| Category | Value |
|---|---|
| Dec 31, 2025 | $2.25B |
| Mar 31, 2026 | $2.38B |
| Jun 30, 2026 | $2.54B |
| Sep 30, 2026 | $3.21B |
Inventories reached $3.21 billion at the end of September 2026, up from $2.54 billion at the end of June. Arista said in August that it expects inventory and orders to suppliers to stay high, as supply gets tighter and new products launch.
Deferred revenue is money for products and services Arista has billed but not yet counted as sales. It is mostly multi-year support contracts and gear waiting for the customer's acceptance.
That pile grew fast in the first half of 2026, by about $1.49 billion. In the third quarter it barely moved, at $6.84 billion against $6.87 billion at the end of June. The release does not say how much of the quarter's sales came out of it.
Does Arista pay dividends or buy back shares?
Arista has never paid a dividend, and it bought back no shares in the first nine months of 2026. It has no borrowings and held about $14.36 billion in cash and short-term investments.
Arista held $2.29 billion in cash at the end of September. It also held $12.07 billion in marketable securities, short-term investments it can sell quickly. Its balance sheet shows no borrowings.
Cash from its business reached $3.98 billion in the first nine months of 2026.
Arista bought back no shares in those nine months, after $983.0 million of buybacks a year earlier. Its board approved a $1.5 billion buyback program in May 2025.
Diluted shares averaged 1,278.2 million in the quarter, about the same as the 1,276.6 million of a year earlier. Arista's annual report for 2025 says it has never declared or paid a dividend and does not expect to pay one in the foreseeable future.
Show the data
| Balance sheet item | September 30, 2026 | June 30, 2026 | December 31, 2025 |
|---|---|---|---|
| Cash and cash equivalents | $2,288.1 million | $2,290.2 million | $1,963.9 million |
| Marketable securities | $12,070.9 million | not shown | $8,779.1 million |
| Inventories | $3,209.8 million | $2,535.3 million | $2,247.1 million |
| Deferred revenue, current | $5,102.2 million | $5,100.7 million | $4,002.6 million |
| Deferred revenue, non-current | $1,737.3 million | $1,765.2 million | $1,369.8 million |
Source: Arista Networks third quarter and second quarter 2026 results releases, condensed consolidated balance sheets and statements of cash flows, unaudited. Inventory and supply outlook and the buyback program: Arista Form 10-Q for the quarter ended June 30, 2026. Dividend policy: Arista Form 10-K for 2025.
What to watch
- Why the gross margin rose and how much of the quarter's sales came out of deferred revenue: in Arista's Form 10-Q for the quarter ended September 30, 2026.
- Whether revenue lands in the $3.9 billion to $4.0 billion range: in Arista's fourth quarter 2026 results.
Our numbers
These figures are our calculations from the sources linked in this article. The growth and forecast comparisons cover Arista's releases from 2022 and from the second quarter of 2024 on.
- About $358 million, or 10.8%, above the forecast: $3,657.6 million of third quarter revenue minus the $3.3 billion Arista forecast in August 2026.
- The widest gap in ten quarters: each quarter's revenue against the prior release's forecast, using the top of any range.
- Four quarters of faster growth, and a rate above the 57.2% of the third quarter of 2022: the growth rates each release states.
- About $14.36 billion of cash and short-term investments: $2,288.1 million of cash plus $12,070.9 million of marketable securities at September 30, 2026.
- Running costs up about 33%: $683.3 million of operating expenses in the third quarter of 2026 against $512.0 million a year earlier.
- About 95% of the extra sales from products: $1,278.3 million more product revenue out of $1,349.3 million more in total.
- About $1.35 billion of added quarterly sales: $3,657.6 million against $2,308.3 million, more than the $1,275.6 million of the best quarter of 2022.
- About three times the size of the third quarter of 2022: $3,657.6 million against $1.177 billion.
- Growth of about 57% to 61% in the fourth quarter: the $3.9 billion to $4.0 billion forecast against $2,487.8 million in the fourth quarter of 2025.
- 2026 sales of about $13.3 billion to $13.4 billion, up about 48% to 49%: $9,402.3 million so far plus the forecast, against $9,005.7 million in 2025.
- Inventory up $674.5 million in the quarter and deferred revenue up about $1.49 billion in the first half: the balance sheets in the releases.
- 42% of 2025 revenue from two customers: the 26% and 16% shares in the annual report, added.
- The after-hours move of about 8.7%: $184.50 at 4:32 p.m. ET against $169.73 in the last minute before the bell.
Frequently asked questions
What did Arista report for the third quarter of 2026?
Revenue of about $3.66 billion, up 58.5% from a year earlier. Net income was $1.56 billion, or $1.22 a share under GAAP and $1.20 on the adjusted basis.
Did Arista beat its revenue guidance?
Yes. Arista had guided to about $3.3 billion and reported about $3.66 billion, its widest beat in at least ten quarters.
What is Arista's guidance for the fourth quarter of 2026?
Revenue of $3.9 billion to $4.0 billion, an adjusted operating margin of 48% to 49% and adjusted earnings of $1.26 to $1.30 a share.
How did ANET stock react to the earnings?
The shares rose in after-hours trading on November 3, 2026, to $184.50 at 4:32 p.m. ET, about 8.7% above the price at the bell.
Who are Arista Networks' biggest customers?
Arista's annual report says two customers made up 26% and 16% of its 2025 revenue. It does not name them there and calls its largest buyers "Cloud and AI Titans."
Does Arista Networks pay dividends?
No. Arista says in its annual report that it has never paid a dividend and does not expect to pay one in the foreseeable future.
Sources
- Arista Networks, Inc. Reports Third Quarter 2026 Financial Results, StockTitan
- Arista Networks, Inc. Reports Second Quarter 2026 Financial Results, StockTitan
- Arista Networks, Inc. Reports First Quarter 2026 Financial Results, StockTitan
- Arista Networks, Inc. Reports Fourth Quarter and Year End 2025 Financial Results, StockTitan
- Arista Networks, Inc. Reports First Quarter 2024 Financial Results, StockTitan
- Arista Networks, Inc. Reports Fourth Quarter and Year End 2022 Financial Results, StockTitan
- Arista Networks, Inc. Reports Third Quarter 2022 Financial Results, StockTitan
- Arista Networks, Inc. Reports First Quarter 2022 Financial Results, StockTitan
- Arista Networks Form 8-K, exhibit 99.1, November 3, 2026, SEC
- Arista Networks Form 10-Q for the quarter ended June 30, 2026, SEC
- Arista Networks Form 10-K for 2025, SEC
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