Arista Networks 8-K
PositiveEarningsNew guidance
Product sales drive fastest growth since IPO; Arista launches open Ethernet AI architectures with AMD and Meta and guides Q4 revenue to $3.9B-$4.0B
Filed 2026-11-03 16:10 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with Q4 guidance. Revenue reached $3.66B, exceeding the $3.3B outlook and marking Arista’s highest Y/Y revenue growth since its IPO, with product sales driving the increase. Arista also launched open-standards Ethernet architectures for rack-scale AI networks with AMD, Arm, Broadcom, d-Matrix, Meta, Microsoft and Qualcomm.
For Q4, revenue guidance midpoint is +8.0% Q/Q and +59% Y/Y; non-GAAP operating margin is 48%-49% vs 49.1% in Q3, and non-GAAP diluted EPS is $1.26-$1.30 vs $1.20.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $3.66B, +58.5% Y/Y | $9.40B, +44% Y/Y |
| GAAP gross margin | 63.6%, vs 64.6% | 62.9%, vs 64.5% |
| Non-GAAP gross margin | 64.0%, vs 65.2% | 63.4%, vs 65.0% |
| GAAP operating income | $1.64B, +68% Y/Y | $4.18B, +48% Y/Y |
| Non-GAAP operating income | $1.80B, +60% Y/Y | $4.60B, +46% Y/Y |
| GAAP net income | $1.56B, +83% Y/Y | $3.80B, +49% Y/Y |
| Non-GAAP net income | $1.53B, +56% Y/Y | $3.94B, +43% Y/Y |
| GAAP diluted EPS | $1.22, +82% Y/Y | $2.98, +49% Y/Y |
| Non-GAAP diluted EPS | $1.20, +56% Y/Y | $3.09, +43% Y/Y |
| Operating cash flow | — | $3.98B, +28% Y/Y |
- Product revenue rose 67% Y/Y to $3.19B; service revenue increased 18% Y/Y to $468M, showing that product sales accounted for most of the revenue growth.
- GAAP net income exceeded non-GAAP net income in Q3 partly because GAAP results included $134.5M of gains on strategic investments, which non-GAAP results exclude. Prior-period non-GAAP results were recast for a change in the company’s tax methodology.
- Cash and marketable securities totaled $14.4B at quarter-end, vs $10.7B at 12/31/2025. Arista made no share repurchases in 9M 2026, vs $983M in 9M 2025; weighted-average diluted shares were 1,276.0M vs 1,275.7M.
Against earlier guidance
| Metric | Period | Earlier guidance | Actual |
|---|---|---|---|
| Revenue | Q3 2026 | $3.3B | $3.66B |
Compared with the earlier filings (derived)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Revenue | Q3 2026 | ≈$3.3B | $3.66B | beat |
| Non-GAAP diluted net income per share | Q3 2026 | $1.06-$1.08 | $1.20 | beat |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q4 2026 | $3.9B-$4.0B | — | — |
| Non-GAAP operating margin | Q4 2026 | 48%-49% | — | — |
| Non-GAAP diluted net income per share | Q4 2026 | $1.26-$1.30 | — | — |
Non-GAAP guidance excludes items including stock-based compensation, intangible asset amortization, tax effects and potential nonrecurring charges or benefits.
Investor Takeaways
- Track product revenue and customer adoption of Arista’s open Ethernet AI architectures; continued product-led growth would support the company’s stated momentum across customer sectors.
The summary is written by an AI model reading the filing.
Model 005 · prompt v173 · 2026-11-03 23:39:56Z