Arista Networks Q3 2026 earnings review

Revenue rose 58.5% and beat consensus by 10.5%, and Q4 guidance topped estimates.

Arista Networks · Q3 2026 · Published Nov 4, 2026 · By DeepCell AI · Sources

Arista Networks Q3 2026 earnings review

Quarter ended September 30, 2026

For information only, not investment advice. No rating or price target.

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1 · Arista Networks (ANET) Q3 2026 earnings review

Revenue rose 58.5% and beat consensus by 10.5%, and Q4 guidance topped estimates

  1. 1.Total revenue rose 58.5% to $3,657.6M, above the Zacks consensus of $3,310M
  2. 2.Non-GAAP diluted EPS of $1.20 beat the Zacks consensus of $1.08; GAAP diluted EPS was $1.22
  3. 3.Q4 revenue guidance midpoint of $3,950M is 9.7% above the LSEG consensus
  4. 4.Non-GAAP operating margin rose 49 bps to 49.1%
  5. 5.Shares rose 12.4% in Nov 4 extended hours vs. the Nov 3 close; CNBC cited Q4 guidance

Note: Non-GAAP figures follow the company reconciliation. The extended-hours price (CNBC, 6:15 AM ET) is not a regular-session close.Source: Arista Networks Form 8-K, Nov 3, 2026; Zacks via AP and Yahoo Finance, Nov 3, 2026; LSEG via CNBC, Nov 3, 2026; CNBC quote, Nov 4, 2026; analysis of company data

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2 · Executive summary

Q3 revenue beat the Zacks consensus by 10.5%, and non-GAAP EPS beat by 11.1%

Q3 2026 results vs. Zacks consensus

MetricActualConsensusVarianceResult
Total revenue$3,657.6M$3,310.0M+$347.6M / +10.5%Beat
Non-GAAP diluted EPS$1.20$1.08+$0.12 / +11.1%Beat

Share price, Nov 3 to Nov 4, 2026

MeasureNov 3 closeNov 4 extended hoursChange
Arista Networks (NYSE)$169.91$191.05+12.4%

Note: Zacks revenue consensus is $3.31B as published (8 analysts); EPS is 10 analysts. Extended-hours price is CNBC last at 6:15 AM ET on Nov 4. The Nov 4 close is not yet available.Source: Arista Networks Form 8-K, Nov 3, 2026; Zacks via AP and Yahoo Finance, Nov 3, 2026; CNBC quote, Nov 4, 2026; analysis of company data

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3 · Q3 results vs. consensus

Q4 revenue guidance sits 9.7% above the LSEG consensus, and EPS guidance 11.3% above

Q4 2026 guidance midpoint vs. LSEG consensus

MetricGuidanceConsensusVariancevs. Street
Q4 2026 revenue$3,950M$3,600M+$350.0M / +9.7%Above
Q4 non-GAAP diluted EPS$1.28$1.15+$0.13 / +11.3%Above

Q4 2026 guidance ranges, Nov 3

MetricLowHighMidpoint vs. Q3
Revenue$3,900M$4,000M+8.0%
Non-GAAP operating margin48%49%-60 bps
Non-GAAP diluted EPS$1.26$1.30+6.7%

Note: Variance is guidance midpoint less consensus. Midpoint vs. Q3 compares with Q3 actuals.Source: Arista Networks Form 8-K, Nov 3, 2026; LSEG via CNBC, Nov 3, 2026; analysis of company data

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4 · Q4 guidance vs. consensus

Revenue rose 58.5%, and net income rose 82.9% with a gain on strategic investments

  1. Revenue grew fast both YoY and QoQTotal revenue rose 20.5% from Q2 2026.
  2. Non-GAAP EPS grew slower than GAAPNon-GAAP diluted EPS rose 55.8% to $1.20.
  3. Other income included a one-off gainThe company excluded a $134.5M gain on strategic investments from non-GAAP results.

Key figures in $M and YoY % for Q3 2026 vs. Q3 2025

$M unless notedQ3 2025Q3 2026YoY
Total revenue$2,308.3M$3,657.6M58.5%
Gross profit$1,490.2M$2,325.7M56.1%
Income from operations$978.2M$1,642.4M67.9%
Net income$853.0M$1,560.4M82.9%
Diluted EPS$0.67$1.2282.1%

Note: Figures are as reported (GAAP). Q3 2025 non-GAAP EPS is recast by the company for its new tax method.Source: Arista Networks Form 8-K, Nov 3, 2026; analysis of company data

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5 · Q3 key financials

Product revenue rose 66.9% and made up 87.2% of revenue

Revenue by line

$M unless noted, Q3 2025 vs. Q3 2026

LineQ3 2025Q3 2026YoY
Product$1,911.7M$3,190.0M66.9%
Service$396.6M$467.6M17.9%
Total revenue$2,308.3M$3,657.6M58.5%
Arista launched open Ethernet rack-scale architectures for AI scale-up and scale-out networks“Arista registered another momentous quarter with the highest year-over-year revenue growth since our IPO and record profitability.” Jayshree Ullal, CEO

Note: Arista reports one segment. Product is switching and routing; service is mainly support contracts (PCS, post-contract customer support).Source: Arista Networks Form 8-K, Nov 3, 2026; Arista Networks Form 10-Q, Nov 4, 2026; analysis of company data

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6 · Revenue by product and service

7 · Revenue bridge

Americas revenue rose 61.7% and reached 81.3% of total revenue

Revenue YoY growth by region

% change YoY, Q3 2026

YoY growth · Americas: 61.7%YoY growth · EMEA region: 59.6%YoY growth · Asia-Pacific: 31.3%YoY growth · Total: 58.5%AmericasEMEA regionAsia-PacificTotal0.0%25.0%50.0%80.0%61.7%59.6%31.3%58.5%
Americas revenue reached $2,975.1M, up from $1,840.0M

Note: Regions follow customer shipping addresses. EMEA is Europe, Middle East and Africa.Source: Arista Networks Form 10-Q, Nov 4, 2026; analysis of company data

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8 · Revenue by region

Net income rose 82.9% to $1,560.4M as gross profit rose $835.5M

Net income bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: $853.0M$M · Gross profit: $835.5M$M · Opex: -$171.3M$M · Other income: $174.2M$M · Taxes: -$131.0M$M · Q3 2026: $1,560.4MQ3 2025Gross profitOpexOther incomeTaxesQ3 2026$0M$500M$1,000M$1,500M$2,000M$853.0M$835.5M-$171.3M$174.2M-$131.0M$1,560.4M
Other income rose $174.2M, including a $134.5M investment gain

Note: Steps are YoY changes. Higher opex and taxes are reductions. Other income is other income (expense), net.Source: Arista Networks Form 8-K, Nov 3, 2026; Arista Networks Form 10-Q, Nov 4, 2026; analysis of company data

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9 · Net income bridge

Operating margin rose 253 bps to 44.9%, while gross margin fell 97 bps

Gross, operating and non-GAAP operating margins

% of revenue, Q3 2025 vs. Q3 2026

Gross margin · Q3 2025: 64.6%Gross margin · Q3 2026: 63.6%Operating margin · Q3 2025: 42.4%Operating margin · Q3 2026: 44.9%Non-GAAP operating margin · Q3 2025: 48.6%Non-GAAP operating margin · Q3 2026: 49.1%Q3 2025Q3 20260.0%25.0%50.0%80.0%64.6%63.6%42.4%44.9%48.6%49.1%

Gross marginOperating marginNon-GAAP operating margin

Opex fell to 18.7% of revenue from 22.2%

Note: SBC is stock-based compensation. Margins are profit divided by total revenue. Non-GAAP excludes SBC and intangible amortization.Source: Arista Networks Form 8-K, Nov 3, 2026; analysis of company data

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10 · Margin analysis

Free cash flow fell 11.1% to $1,100.2M as inventories and capex rose

Operating cash flow to free cash flow

$M, Q3 2026

$M · Operating CF: $1,200.9M$M · Capex: $100.7M$M · FCF: $1,100.2MOperating CFCapexFCF$0.0M$500.0M$1,000.0M$1,500.0M$1,200.9M$100.7M$1,100.2M
FCF margin was 30.1%, down from 53.6%

Note: FCF is operating cash flow less purchases of PP&E. Q3 is nine months less six months.Source: Arista Networks Form 8-K, Nov 3, 2026; Arista Networks Form 8-K, Aug 4, 2026 (prior guidance, six-month cash flow); analysis of company data

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11 · Free cash flow

Q3 revenue beat company guidance by 10.8%, and non-GAAP EPS beat by 12.1%

Q3 2026 results vs. company guidance of Aug 4, 2026

$M unless noted, Q3 2026

MetricGuidanceActualVariance
Total revenue$3,300M$3,657.6M+10.8%
Non-GAAP operating margin48.5%49.1%+60 bps
Non-GAAP diluted EPS$1.070$1.20+12.1%
Revenue was $357.6M above the company’s Aug 4 guidance of about $3,300M

Note: Guidance is from the Q2 2026 release of Aug 4, 2026; margin and EPS use range midpoints.Source: Arista Networks Form 8-K, Nov 3, 2026; Arista Networks Form 8-K, Aug 4, 2026 (prior guidance, six-month cash flow); analysis of company data

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12 · Q3 vs. company guidance

Cash and marketable securities rose to $14,359.0M, with no debt

Cash, marketable securities and inventories

$M, Dec 31, 2025 vs. Sep 30, 2026

$MDec 31, 2025Sep 30, 2026
Cash and cash equivalents$1,963.9M$2,288.1M
Marketable securities$8,779.1M$12,070.9M
Cash and marketable securities$10,743.0M$14,359.0M
Inventories$2,247.1M$3,209.8M
Inventories rose 42.8% since Dec 31 to $3,209.8M

Note: The balance sheet shows no debt. Deferred revenue detail is in the appendix.Source: Arista Networks Form 8-K, Nov 3, 2026; analysis of company data

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13 · Balance sheet and net cash

Q4 guidance assumes non-GAAP operating margin of 48.5%, below Q3 at 49.1%

Indicator
What to watch
Implication
Q3 reading
Gross margin
Higher product costs
Product margin pressure
Q3 gross margin 63.6%
Supply commitments
Memory and silicon supply
Working capital rises
Commitments $11,400M
Customer concentration
Large cloud customers
Order timing swings
Americas 81.3% of revenue
Q4 revenue
Guidance midpoint
Growth of 8.0% QoQ
Q3 revenue $3,657.6M

Note: These are analytical watch points, not company targets. Risk themes follow the 10-Q risk discussion.Source: Arista Networks Form 8-K, Nov 3, 2026; Arista Networks Form 10-Q, Nov 4, 2026; analysis of company data

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14 · Key risks to guidance

Appendix: revenue by line and region

ClaimEvidenceCalculation
Service revenue grew slower than productService revenue 17.9% YoY; product 66.9%Income statement
Revenue grew fast from Q2Total revenue 20.5% QoQ from $3,035.7MQ3 2026 divided by Q2 2026
Asia-Pacific grew slowestAsia-Pacific revenue 31.3% YoY to $301.3M10-Q geographic note
Non-Americas share fellNon-Americas share 20.3% to 18.7%EMEA and Asia-Pacific divided by revenue

EMEA is Europe, Middle East and Africa. Source: Arista Networks Form 8-K, Nov 3, 2026; Arista Networks Form 10-Q, Nov 4, 2026; analysis of company data

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15 · Appendix: Revenue detail

Appendix: profit and margin detail

ClaimEvidenceCalculation
R&D rose faster than revenueR&D $486.9M, up 49.4% YoYIncome statement
Product gross margin fellProduct gross margin 61.0% to 60.7%Product revenue less product cost, over product revenue
Non-GAAP net income roseNon-GAAP net income $1,530.8M, up 56.3%Company reconciliation
Effective tax rate fellEffective tax rate 20.8% to 18.5%Tax provision divided by pretax income

Source: Arista Networks Form 8-K, Nov 3, 2026; analysis of company data

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16 · Appendix: Profit and margins

Appendix: guidance and cash detail

ClaimEvidenceCalculation
Q4 EPS guidance midpoint rose from Q3Midpoint $1.28, +6.7% vs. Q3 non-GAAP EPSRange midpoint
Operating cash flow fell YoYQ3 operating cash flow $1,200.9M vs. $1,268.2MNine months less six months
Capex rosePurchases of PP&E $100.7M vs. $30.1MNine months less six months
No buybacks in 2026 to date$817.9M left under the $1,500M program10-Q stock repurchase note

Source: Arista Networks Form 8-K, Nov 3, 2026; Arista Networks Form 10-Q, Nov 4, 2026; Arista Networks Form 8-K, Aug 4, 2026 (prior guidance, six-month cash flow); analysis of company data

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17 · Appendix: Guidance and cash

Appendix: supply commitments and backlog detail

ClaimEvidenceCalculation
Purchase commitments are largeNon-cancellable commitments $11,400M, $9,300M within 12 months10-Q Note 4
Inventories roseInventories up $962.7M since Dec 31Balance sheet
Deferred revenue roseTotal deferred revenue up $1,467.1M to $6,839.5MCurrent plus non-current
RPO reached $8.6BRPO $8,600M; 91% within two years10-Q revenue note

RPO is remaining performance obligations. Source: Arista Networks Form 8-K, Nov 3, 2026; Arista Networks Form 10-Q, Nov 4, 2026; analysis of company data

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18 · Appendix: Supply and backlog

Appendix: operating expense and non-GAAP detail

GAAP operating expenses, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Research and development$326.0M$486.9M49.4%
Sales and marketing$151.2M$156.6M3.6%
General and administrative$34.8M$39.8M14.4%
Total operating expenses$512.0M$683.3M33.5%

Non-GAAP results, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Non-GAAP income from operations$1,121.9M$1,795.8M60.1%
Non-GAAP net income$979.4M$1,530.8M56.3%
Stock-based compensation$127.9M$138.1M8.0%
Non-GAAP diluted EPS ($)$0.77$1.2055.8%

Note: Non-GAAP excludes SBC, intangible amortization, strategic investment gains and related tax effects.Source: Arista Networks Form 8-K, Nov 3, 2026; analysis of company data

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19 · Appendix: Opex and non-GAAP

Appendix: sources

  • Filing: Arista Networks Form 8-K, Nov 3, 2026 — https://www.sec.gov/Archives/edgar/data/1596532/000159653226000252/0001596532-26-000252-index.htm
  • Earnings release, Q3 2026 (Ex. 99.1) — https://www.sec.gov/Archives/edgar/data/1596532/000159653226000252/ex991q326-earningsrelease.htm
  • Form 10-Q, quarter ended Sep 30, 2026, filed Nov 4, 2026 — https://www.sec.gov/Archives/edgar/data/1596532/000159653226000254/anet-20260930.htm
  • Prior guidance and six-month cash flow: Q2 2026 release (Ex. 99.1), Aug 4, 2026 — https://www.sec.gov/Archives/edgar/data/1596532/000159653226000174/ex991q226-earningsrelease.htm
  • Investor relations copy of the release: investors.arista.com
  • Q3 consensus: Zacks via AP and Yahoo Finance, Nov 3, 2026 — https://finance.yahoo.com/markets/stocks/articles/arista-networks-q3-earnings-snapshot-211428220.html; cross-check: Investing.com, Nov 3, 2026 ($3.33B, $1.08)
  • Q4 consensus: LSEG via CNBC, Nov 3, 2026 — https://www.cnbc.com/2026/11/03/stock-market-today-live-updates.html
  • Share price: CNBC ANET quote, Nov 3 close and Nov 4 extended-hours last price at 6:15 AM ET — https://www.cnbc.com/quotes/ANET

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20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from Arista Networks' Form 8-K of November 3, 2026 (Exhibit 99.1), its Form 10-Q for the quarter ended September 30, 2026 and, for prior guidance, its Form 8-K of August 4, 2026. Consensus estimates (Zacks via AP and Yahoo Finance, LSEG via CNBC, Investing.com) and share prices (CNBC) are third-party data, credited on the sources page. We have not independently verified third-party data and make no warranty that any information here is accurate, complete or timely.

Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Past performance. Past results, including those for Q3 2026, are not a reliable indicator of future results.

Non-GAAP measures. Non-GAAP gross profit, operating income, net income, diluted EPS and free cash flow follow Arista Networks' own definitions or our stated formula. They supplement, and do not replace, GAAP results, and they may not be comparable with other companies' measures. The earnings release reconciles them to GAAP.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by Arista Networks, Inc. and does not represent its views. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings and consult a qualified professional adviser before making any investment decision.

Date of analysis. The analysis reflects information available as of the morning of November 4, 2026, US Eastern time, before the regular session. It will not be updated for later events, and views may change without notice.

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