Arista Networks posts 58.5% revenue growth as AI networking demand accelerates
Arista Networks reported third-quarter revenue of $3.66 billion, up 58.5% from a year earlier, beating its own forecast and recording its fastest growth since its IPO.
The company had guided for $3.3 billion in Q3 revenue but delivered $3.66 billion instead. Product sales climbed to $3.19 billion, compared with $1.91 billion in Q3 2025, while services added another $468 million. GAAP net income reached $1.56 billion, or $1.22 per share.
Record Quarter
CFO Chantelle Breithaupt described the quarter with a single word: "Trifecta." She was referring to record revenue growth, record net income, and record EPS all landing in the same report.
Trifecta
AI-Driven Growth
CEO Jayshree Ullal framed the results as evidence of Arista's growing footprint in AI. The nine-month revenue for 2026 totaled $9.40 billion, up from $6.52 billion in the same period of 2025. The company projects Q4 revenue between $3.9 billion and $4.0 billion.
Investment Implications
Services revenue of $468 million, though smaller than product sales, represents recurring support revenue tied to an expanding installed base. The unusual arrangement where GAAP EPS ($1.22) exceeded non-GAAP EPS ($1.20) this quarter warrants monitoring in future reports.
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