The data center networking firm beat its own forecast, guided higher for Q4, and recorded its fastest growth since going public
Arista Networks just turned in the kind of quarter that makes rival CFOs quietly close their laptops. The company reported third-quarter revenue of $3.66 billion, up 58.5% from a year earlier.
That marks Arista’s fastest growth rate since its IPO.
The numbers behind the beat
The company had guided for $3.3 billion in Q3 revenue. It delivered $3.66 billion instead, clearing its own bar with room to spare.
A year ago, the same quarter brought in $2.31 billion.
Product sales did most of the lifting. They climbed to $3.19 billion, compared with $1.91 billion in Q3 2025. Services added another $468 million on top.
Profitability kept pace with the top line. GAAP net income came in at $1.56 billion, or $1.22 per share. Non-GAAP earnings per share reached $1.20, up from $0.77 a year earlier.
CFO Chantelle Breithaupt summed up the quarter with a single word.
“Trifecta”
She was referring to record revenue growth, record net income, and record EPS all landing in the same report.
Guidance points higher
Arista projects fourth-quarter revenue between $3.9 billion and $4.0 billion, with non-GAAP EPS expected in a range of $1.26 to $1.30.
Shares rose substantially in after-hours trading following the release.
The year-to-date picture is equally striking. Nine-month revenue for 2026 totaled $9.40 billion, up from $6.52 billion in the same stretch of 2025.
Why AI is driving the surge
CEO Jayshree Ullal framed the quarter as evidence of Arista’s growing footprint in AI. She pointed to broad momentum across the business and the company’s relevance to emerging AI workloads.
The demand signal is visible in the product line. Product revenue jumped from $1.91 billion to $3.19 billion year over year, which suggests customers are buying hardware in bulk as they expand AI-focused data centers.
Ullal has led Arista since 2008. She runs the company alongside President and COO Todd Nightingale and CFO Breithaupt.
What this means for investors and the AI trade
The services line deserves attention too. At $468 million, it is smaller than product sales, but it represents recurring support revenue tied to an installed base that keeps growing.
Margins and earnings quality will be the other tell. GAAP EPS of $1.22 came in slightly above non-GAAP EPS of $1.20 this quarter, an unusual arrangement worth monitoring in future reports to see whether it holds.
