Arista Networks, US0404132054

Arista Networks stock gets fresh AI lift from record Q3

Published on 11/06/2026 at 13:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Arista Networks stock follows a record quarter as revenue jumps 58.5%. Management raised its fourth-quarter outlook on strong AI demand.

AI demand lifts Arista outlook

Third-quarter revenue rose 58.5% year over year to $3.66 billion, exceeding the company's $3.3 billion guidance.
Arista raised fourth-quarter revenue guidance to $3.9 billion to $4.0 billion and expects non-GAAP diluted earnings per share of $1.26 to $1.30.
The company linked the quarter's momentum to demand from AI and enterprise customers.

Arista Networks, US0404132054, Illustration mit AI erstellt.

Arista Networks reported record third-quarter growth on November 3, with revenue of $3.66 billion for the period ended September 30. The result exceeded the company's $3.3 billion guidance and marked the highest year-over-year revenue growth since its initial public offering, according to the Arista Networks release.

Arista Networks stock traded at 151.20 euros on Lang & Schwarz at 13:05 CET on Friday, November 6. The available quote does not establish a comparison with a dated Xetra close, so the price is presented without a percentage direction.

Record growth meets stronger guidance

Revenue increased 20.5% from the second quarter and 58.5% from the third quarter of 2025. GAAP operating margin reached 44.9%, compared with 42.4% a year earlier, while non-GAAP operating margin rose to 49.1% from 48.6%.

GAAP diluted earnings per share came to $1.22, up from $0.67 in the prior-year quarter. Non-GAAP diluted earnings per share reached $1.20, compared with $0.77 a year earlier. The non-GAAP figures exclude items including stock-based compensation, intangible asset amortization and related tax effects.

Chief Executive Jayshree Ullal said the company had delivered its strongest year-over-year revenue growth since its IPO and record profitability. She attributed the momentum to increased relevance in generative and agentic AI, while the company said strength extended across AI and enterprise customers.

AI networking remains the next test

Arista outlined new Ethernet rack-scale architectures for scale-up and scale-out AI networks with partners including AMD, Arm, Broadcom, Meta, Microsoft and Qualcomm. The company also described a distributed AI fabric strategy built around its 7800 AI Spine and EOS operating system.

For the fourth quarter, management expects revenue of $3.9 billion to $4.0 billion, non-GAAP operating margin of 48% to 49% and non-GAAP diluted earnings per share of $1.26 to $1.30. The outlook keeps execution, component availability and the pace of AI infrastructure spending central to the investment case.

For investors, the report combines faster growth with a modestly lower quarterly GAAP margin than the comparable non-GAAP measure. Arista also warned in its release that supply constraints, reliance on key vendors, export restrictions, customer concentration and changes in information-technology spending could affect future results.

Arista Networks stock remains tied to the wider direction of the S&P 500 and the market's assessment of AI infrastructure investment.

View the real-time quote of Arista Networks stock for the latest trading information.