Arista expects revenue to exceed $13.3 billion in 2026 after quarterly growth of 58.5%

Key Facts

Arista Networks said on Nov. 3, 2026, that third-quarter revenue reached about $3.66 billion, topping its previous guidance of $3.3 billion, with year-over-year growth of 58.5%, which it described as the highest since its initial public offering. The results came with management’s expectation that fiscal 2026 revenue would exceed $13.3 billion at the midpoint of its fourth-quarter guidance range. That puts the company’s performance in the context of rapidly expanding demand for data center networking as management prepares for a new phase of growth in 2027. The company said quarterly revenue rose 20.5% from the second quarter and 58.5% from the same period a year earlier. Management attributed the expansion to “continued strength in demand from AI and enterprise customers.”

Arista posted a non-GAAP operating margin of 49.1% and non-GAAP diluted earnings per share of $1.20 in the third quarter. Chief Executive Jayshree Ullal said the company delivered “the highest year-over-year revenue growth since our IPO and record profitability,” surpassing even its elevated expectations. That followed fiscal 2025 revenue of about $9.006 billion, up 28.6% from fiscal 2024. International revenue was $682.5 million, equal to 18.6% of total third-quarter revenue. That share was 23% in the second quarter, and management attributed the decline to a change in the geographic sales mix among large global customers.

Arista identifies AI networking and campus networking as its next growth drivers. It expects AI networking revenue to double to about $7 billion in 2027, making it the fastest-growing of its businesses. It also targets campus revenue of about $2 billion that year, with growth of 60%. Management said the company’s momentum across customer segments reflects “its growing relevance in the era of generative and agentic AI.” As an indication of the scale of infrastructure it aims to support, Arista expects to deploy networks exceeding 10 gigawatts across 10 or more types of compute accelerators by the end of 2027.

The company announced the Etherlink SU-144 architecture, designed to support up to 144 accelerators in a single rack in one hop. It can be expanded to 1,024 XPU units through topologies linking racks, according to the earnings statement. Management links these products to the expanding deployment of AI networks, though the timeline for some applications extends beyond the near term. Arista expects to begin trials of in-rack scale-up designs in 2027 and production in 2028, with no significant contribution from them to 2027 revenue expected. That means the near-term growth target relies on existing demand and available products, while some of the newer scale-up applications remain further out.

Arista expects fourth-quarter 2026 revenue of between $3.9 billion and $4 billion, a non-GAAP operating margin of between 48% and 49%, and non-GAAP diluted earnings per share of between $1.26 and $1.30. Management said 2027 gross profit margins are expected to range from 62% to 64%, with an operating margin of about 49%. It also said fourth-quarter guidance puts fiscal 2026 revenue at more than $13.3 billion at the midpoint of the outlook. These indicators provide a financial framework for the company’s operating targets for the following year, with the outlook still dependent on sustained demand and project execution growth.

In trading, a report dated Nov. 3 said Arista shares rose 3.52% during the regular session to $169.91, then climbed 12.1% after the close to $190.46 following the results announcement. The move reflects investors’ response to quarterly performance and the company’s outlook, including its AI networking targets for next year. These prices relate to the announcement session and do not represent a forecast for the stock’s trajectory. On the business side, management links the next phase to expanding customer networks and the diversity of compute accelerators it supports. The most distant operational milestone the company set is the start of production of in-rack scale-up designs in 2028.