Arista Networks stock weighs record AI quarter and new outlook

Arista Networks reported its third-quarter results on Tuesday, November 3, 2026, with revenue growth accelerating as demand for artificial-intelligence and data-center networking remained strong. In its financial-results release, the company said revenue reached 3.66 billion US dollars for the quarter ended September 30.

Revenue increased 20.5 percent from the second quarter and 58.5 percent from the year-earlier period. Arista described the year-over-year rate as its highest since the company went public. CEO Jayshree Ullal said the performance reflected stronger relevance across customer sectors during the generative and agentic AI expansion.

AI networking expands the growth case

Arista also used the results announcement to outline new open, standards-based rack-scale architectures for scale-up and scale-out AI fabrics. The company said the liquid-cooled portfolio can support up to 144 accelerators per rack in a single hop and scale to 1,024 XPUs through cross-rack topologies.

The product push gives investors a clearer view of how Arista is targeting larger AI clusters rather than relying only on traditional data-center switching. The company also highlighted its 7800 AI Spine, unified EOS operating system and software-security work with technology companies including Anthropic, Google and OpenAI.

Margins remain central to valuation

GAAP operating margin was 44.9 percent, up from 42.4 percent in the year-earlier quarter. Non-GAAP operating margin reached 49.1 percent, compared with 48.6 percent a year earlier. Diluted GAAP earnings per share rose to 1.22 US dollars from 0.67 US dollars, while non-GAAP diluted earnings per share increased to 1.20 US dollars from 0.77 US dollars.

Arista cautioned that its adjusted measures exclude items such as stock-based compensation, intangible-asset amortization and certain tax effects. That distinction matters for shareholders because the company expects these exclusions to have a significant effect on reported GAAP margins and earnings.

Arista Networks stock traded at 153.00 euros on Lang & Schwarz at 14:00 CET on Thursday, November 5. Investors can follow the real-time quote of Arista Networks stock during the market session.

Fourth-quarter targets set next test

For the fourth quarter, management expects revenue of 3.9 billion to 4.0 billion US dollars, non-GAAP operating margin of 48 percent to 49 percent and non-GAAP diluted earnings per share of 1.26 to 1.30 US dollars. The range keeps execution, component availability and AI customer spending at the center of the next reporting cycle.

The S&P 500 remains the relevant broad market backdrop for this US-listed networking company; see current market developments.

Further results, product updates and investor analysis are available in more news and analyses on Arista Networks stock.