Arista Expects $3.3 Billion in Revenue as Shares Rise 5.61% Ahead of Results
Key Facts
Arista Networks shares rose 5.61% to $187.19 at 11:40 a.m. Eastern time on October 27, according to a Yahoo Finance report, in trading ahead of the company's third-quarter results. The move comes before the company's next financial test, with revenue expected to reach about $3.3 billion for the quarter. It also guided to an adjusted operating margin of 48% to 49% and diluted earnings per share of $1.06 to $1.08. The coming results will show how closely actual performance matches those expectations. The stock closed at $177.24 on October 26, according to EL7 data.
The company distinguishes between the intraday price recorded during the October 27 session and the closing price in the previous session: $187.19 was the price at 11:40 a.m. Eastern time, not a daily close. The October 26 close of $177.24 is the previous available comparison point. The shares rose as the market awaited the third-quarter disclosure, but the available trading report does not identify a reason for the gain. In the context of the company's business, Chief Executive Jayshree Ullal described networks as the “central nervous system” of infrastructure, from client devices and campuses to data centers and artificial intelligence. The statement provides context for the company's strategy and areas of operation without linking that day's share move to a specific cause.
The latest outlook builds on a revenue base that expanded in the second quarter of 2026: revenue reached $3.036 billion, up 12.1% from the first quarter and 37.7% from the second quarter of 2025. Chief Financial Officer Chantelle Breithaupt said revenue rose 37.7% and earnings per share 39.7% year over year in the second quarter. That puts the third-quarter revenue guidance of about $3.3 billion after a period of strong annual growth. The guidance also includes an adjusted operating margin of 48% to 49%, making profitability a key part of the figures the company will report. It also expects diluted earnings per share of $1.06 to $1.08, compared with $1.02 in the second quarter of 2026.
Second-quarter results showed a non-GAAP operating margin of 49.9%, compared with 48.8% in the second quarter of 2025. The third-quarter margin outlook, at 48% to 49%, is below the reported second-quarter level, although still close to it. Adjusted diluted earnings per share rose to $1.02 in the second quarter of 2026 from $0.73 in the same period a year earlier. Third-quarter guidance of $1.06 to $1.08 indicates the level the company is targeting for the following period. The actual result will be reported in November.
The growth record the company has presented extends to before its 2026 results: in 2025, Arista said it had cumulatively shipped 150 million ports and generated $9 billion in revenue. The company said the year saw it exceed its targets in AI networking and campus expansion. Fourth-quarter 2025 revenue was $2.488 billion, up 28.9% from the same quarter in 2024. The operating margin that quarter was 47.5%, while quarterly net income exceeded $1 billion, according to the chief financial officer. In August 2026, the company announced AI networking platforms with a capacity of 1.6 terabits per second, including liquid-cooling options.
Arista will report results for the third quarter, which ended on September 30, 2026, after the U.S. market closes on Tuesday, November 3. The company scheduled a results discussion call for the same day at 1:30 p.m. Pacific time, or 4:30 p.m. Eastern time. The reported figures will provide a direct comparison with the company's third-quarter guidance for revenue, margin and earnings per share. They will also put the period's results alongside second-quarter growth, when revenue rose 37.7% and earnings per share rose 39.7% year over year. The announcement follows the stock's rise during trading on October 27.