Arista Posts $11.4 Billion in Purchase Commitments as Revenue Grows 58.5%
Key Facts
Arista Networks reported on November 3 results for the third quarter ended September 30, 2026, disclosing $11.4 billion in non-cancelable purchase commitments at the end of the period. The company said third-quarter revenue was $3,657.6 million, compared with $2,308.3 million in the same period a year earlier, while revenue for the first nine months rose to $9,402.3 million from $6,517.9 million. The results came alongside the company’s first forecast for fiscal 2027, which points to revenue growth of 38% to 40%. The midpoint of that range equates to revenue of about $18.5 billion. The commitments show the scale of supplier purchases the company has pledged to meet new product needs and deploy artificial intelligence applications.
Purchase commitments rose from $9.7 billion at the end of the second quarter to $11.4 billion at the end of the third quarter. The CFO said these expected activities are mostly chip purchases related to new products and AI deployment. He explained: "Most of this expected activity represents chip purchases related to new products and AI deployment." The commitments put securing components at the center of the company’s ability to deliver on its announced growth plans. Arista’s inventory rose to $3.2 billion at the end of the quarter, from $2.5 billion in the previous quarter. Management warned that inventory balances would continue to fluctuate depending on the timing of component availability.
On profitability, non-GAAP diluted earnings per share were $1.20 in the third quarter, versus $0.77 a year earlier. GAAP earnings per share were $1.22, compared with $0.67 in the third quarter of 2025. Non-GAAP operating margin also reached 49.1%, up from 48.6% a year earlier, while GAAP margin rose to 44.9% from 42.4%. These figures show simultaneous year-over-year improvement in operating earnings and earnings per share. Revenue for the nine months ended September 30 was $9,402.3 million, compared with $6,517.9 million in the corresponding period of 2025.
In its near-term forecast, Arista raised its fourth-quarter 2026 revenue range to $3.9–4.0 billion. The company expects a non-GAAP operating margin of 48% to 49% and diluted earnings per share of $1.26 to $1.30. For 2027, the revenue growth range of 38% to 40% is based on a midpoint equivalent to about $18.5 billion. That figure remains management’s estimate for the coming fiscal year, while the company did not directly link its purchase commitments to its 2027 forecast in its disclosure. The guidance offers a nearer-term view through the fourth-quarter forecast, alongside the annual trajectory it revealed for the first time.
Management expects revenue from AI networks called AI fabrics to double to about $7 billion in 2027. It also targets revenue of about $2 billion for the cognitive campus segment that year, with expected growth of 60%. The company said AI fabrics are expected to "double to about $7 billion," while cognitive campus represents "healthy growth of 60% to about $2 billion in 2027." On product development, Arista announced the launch of standards-based, open, rack-scale architectures for scale-up and scale-out AI networks. It said the launch was in partnership with AMD, Arm, Broadcom, d-Matrix, Meta, Microsoft and Qualcomm.
In trading, EL7 data showed Arista shares closed at $170.8 on November 6, 2026. In the November 3 earnings session, Investing.com reported that the stock rose 12.1% in after-hours trading to $190.46, after ending the regular session at $169.91, up 3.52% on the day. Arista was added to the S&P 100 index in September 2026. The third-quarter results and new guidance give investors figures to track as the company executes its growth plan, while chip supplies and the timing of component availability remain part of the supply picture described by management.