Arista Revenue Surges 58.5% to $3.66B, Topping Its Own Guide, as Q4 Outlook Points to $3.9B-$4.0B
Non-GAAP operating margin reached 49.1% and Arista holds about $14.4B in cash and securities, but non-GAAP gross margin slipped 1.2 points to 64.0%.
Arista Networks (ANET) reported third-quarter 2026 revenue of $3.66 billion, up 58.5% from a year earlier and 20.5% from the second quarter, with non-GAAP earnings of $1.20 per share. Both figures topped the guidance Arista gave in August, which called for revenue of about $3.3 billion and EPS of $1.06 to $1.08. The networking company guided fourth-quarter revenue to $3.9 billion to $4.0 billion. Shares were up about 10.2% in after-hours trading.
Third-quarter results
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $3,657.6M | $2,308.3M | +58.5% |
| Non-GAAP diluted EPS | $1.20 | $0.77 | +$0.43 |
| GAAP diluted EPS | $1.22 | $0.67 | +$0.55 |
| Non-GAAP gross margin | 64.0% | 65.2% | -1.2 pts |
| Non-GAAP operating margin | 49.1% | n/a | Guide was 48% to 49% |
| Non-GAAP operating income | $1,795.8M | n/a | n/a |
By our calculation, revenue ran about 10.8% above the roughly $3.3 billion guide and non-GAAP EPS about 12% above the $1.07 midpoint of its range. GAAP earnings include $134.5 million of gains on strategic investments. Chief Executive Jayshree Ullal described the quarter as Arista's highest year-over-year revenue growth since its IPO, with record profitability.
Fourth-quarter outlook
| Item | Q4 2026 guidance |
|---|---|
| Revenue | $3.9B to $4.0B |
| Non-GAAP operating margin | 48% to 49% |
| Non-GAAP diluted EPS | $1.26 to $1.30 |
By our calculation, the $3.95 billion revenue midpoint is about 8.0% above Q3 revenue, and the $1.28 EPS midpoint is about 6.7% above Q3's $1.20.
Cash and capital return
Arista ended September with about $14.4 billion of cash and marketable securities. It repurchased no common stock in the first nine months of 2026, compared with $983.0 million in the same period of 2025. Operating cash flow for the nine months was $3.98 billion against $184.9 million of property and equipment purchases, which by our calculation leaves roughly $3.79 billion of free cash flow. Arista joined the S&P 100 in September.
What to watch
- Conference call. Management commentary on what drove the revenue jump and how much of the Q4 guide is already visible.
- Gross margin. Whether non-GAAP gross margin, down 1.2 points from a year ago, stabilizes near 64%.
- Buybacks. Whether Arista resumes repurchases after a nine-month pause.
- Related coverage. See our reports on AMD, Fabrinet and Palantir.
Sources: Arista's third-quarter 2026 results and its second-quarter 2026 release on SEC EDGAR, which contains the prior guidance. The after-hours move comes from market data and may differ by source. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.
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