Arista Networks (NYSE:ANET) Announces Quarterly Earnings Results, Beats Estimates By $0.12 EPS

04 Nov 2026, 00:26 by Sarita Garza · The Markets Daily

Arista Networks (NYSE:ANET – Get Free Report) posted its earnings results on Tuesday. The technology company reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.12, FiscalAI reports. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%. The firm had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.33 billion.

Here are the key takeaways from Arista Networks’ conference call:

Record Q3 performance: Revenue reached $3.66 billion, up 58.5% year over year, while operating margin exceeded 49% and diluted EPS rose 55.8% to $1.20.
Raised outlook: Arista increased its 2026 revenue guidance to approximately $13.3 billion and introduced 2027 guidance of about $18.5 billion, implying 38%–40% growth and roughly 49% operating margin.
AI networking momentum is accelerating: The company now has more than 100 Etherlink customers and expects AI fabrics to double to approximately $7 billion in 2027, supported by deployments spanning more than 10 gigawatts and multiple accelerator types.
Enterprise and campus share gains: Arista expects its cognitive campus business to grow about 60% to roughly $2 billion in 2027, driven by demand for reliable, secure, automated networks and its EOS, CloudVision, and zero-trust capabilities.
Investment and supply-chain risks remain: Inventory rose to $3.2 billion and purchase commitments increased to $11.4 billion as Arista invests ahead of demand; gross margin is expected to remain lower at 62%–64% in 2027, while advanced AI products continue to face longer lead times and execution requirements.

Arista Networks Price Performance

Shares of ANET stock traded up $5.44 during trading hours on Tuesday, reaching $169.58. 12,530,849 shares of the stock were exchanged, compared to its average volume of 7,812,347. The business’s fifty day moving average is $194.30 and its two-hundred day moving average is $165.10. Arista Networks has a 12-month low of $114.52 and a 12-month high of $217.41. The firm has a market capitalization of $213.88 billion, a P/E ratio of 53.49, a P/E/G ratio of 2.17 and a beta of 1.60.

Analyst Upgrades and Downgrades

ANET has been the topic of a number of recent research reports. Morgan Stanley reiterated an “overweight” rating and set a $220.00 price target (up from $190.00) on shares of Arista Networks in a research note on Wednesday, August 5th. Barclays reissued an “overweight” rating and issued a $289.00 price objective (up from $195.00) on shares of Arista Networks in a research note on Wednesday, August 5th. The Goldman Sachs Group restated a “buy” rating and issued a $225.00 price objective on shares of Arista Networks in a report on Wednesday, August 5th. Sanford C. Bernstein assumed coverage on shares of Arista Networks in a research note on Wednesday, September 30th. They set an “outperform” rating and a $250.00 target price on the stock. Finally, Needham & Company LLC reiterated a “buy” rating and set a $260.00 target price (up from $200.00) on shares of Arista Networks in a report on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $232.95.

Check Out Our Latest Report on ANET

Insider Buying and Selling

In other Arista Networks news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $202.60, for a total value of $60,780,000.00. Following the sale, the insider directly owned 180,843,048 shares of the company’s stock, valued at approximately $36,638,801,524.80. This represents a 0.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 767,029 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $201.22, for a total transaction of $154,341,575.38. Following the completion of the sale, the chief executive officer directly owned 16,387,981 shares in the company, valued at approximately $3,297,589,536.82. This represents a 4.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 3,619,449 shares of company stock valued at $739,787,226 in the last quarter. 2.70% of the stock is owned by insiders.

Arista Networks News Roundup

Here are the key news stories impacting Arista Networks this week:

Positive Sentiment: Q3 earnings were $1.20 per share, above the $1.08 consensus and up from $0.75 a year earlier. Revenue of $3.66 billion also beat the $3.33 billion estimate. Arista Networks Q3 earnings and revenues beat estimates
Positive Sentiment: Revenue growth was reported at 58%—the highest year-over-year rate since Arista’s IPO—and the company said it achieved record profitability. Q4 guidance was characterized as strong, supporting expectations for continued demand. Arista Networks stock pops on Q3 earnings beat and strong Q4 guidance
Neutral Sentiment: Operating margin widened, but gross margin slipped as product sales made up a larger share of revenue. That mix shift could limit how much of strong sales growth translates into future profitability. Arista revenue up 58% as Q4 outlook slows

Arista Networks Company Profile

(Get Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, cloud service providers, enterprises and specialized computing environments. The company’s products are designed to support high-performance, scalable and automated networks used for cloud computing, artificial intelligence, data analytics and other demanding applications.