Arista Networks Reports 58.5% YoY Revenue Growth in Q3, Highest Since IPO; Guides Q4 to $3.9B-$4.0B
Arista Networks reported Q3 revenue of $3.66 billion, up 58.5% year-over-year, marking its highest growth since IPO. The company guided Q4 revenue to $3.9-$4.0 billion, indicating strong demand for AI networking infrastructure.
U.S. networking equipment manufacturer Arista Networks released its financial results for the third quarter ended September 30, 2026, on November 3. The report showed total revenue of approximately $3.66 billion, representing a 20.5% increase from the second quarter and a 58.5% increase from the same period last year. This growth rate significantly exceeded the previous guidance of $3.3 billion and marks the highest year-over-year revenue growth since the company's initial public offering (IPO).
In terms of profitability, Arista Networks' GAAP operating margin was 44.9%, and non-GAAP operating margin was 49.1%, both higher than the 42.4% and 48.6% recorded in the same quarter last year. Diluted earnings per share (EPS) were $1.22 on a GAAP basis and $1.20 on a non-GAAP basis, compared to $0.67 and $0.77 respectively in the prior year. CEO Jayshree Ullal stated that this momentum highlights the company's increased relevance in the generative and agentic AI era.
Looking ahead, Arista Networks expects fourth-quarter revenue to range between $3.9 billion and $4.0 billion, with a non-GAAP operating margin of 48-49% and non-GAAP diluted EPS of $1.26 to $1.30. This guidance suggests continued optimism regarding the capital expenditure cycle in the sector.