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

Arista Networks (NYSE:ANET) posted its quarterly earnings results on Tuesday. The technology company reported $1.20 earnings per share 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 business had revenue of $3.66 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same period in the prior year, the company posted $0.75 EPS. The firm’s revenue for the quarter was up 58.5% compared to the same quarter last year.

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 Stock Up 5.4%

ANET traded up $9.19 during trading hours on Wednesday, reaching $179.10. 7,765,942 shares of the company’s stock traded hands, compared to its average volume of 7,804,459. The firm has a 50-day moving average price of $194.30 and a 200 day moving average price of $165.10. Arista Networks has a 52-week low of $114.52 and a 52-week high of $217.41. The firm has a market capitalization of $225.89 billion, a PE ratio of 56.50, a PEG ratio of 1.91 and a beta of 1.61.

Analyst Ratings Changes

A number of research firms recently issued reports on ANET. Morgan Stanley reaffirmed an “overweight” rating and set a $230.00 price target (up from $220.00) on shares of Arista Networks in a research note on Wednesday. Weiss Ratings raised shares of Arista Networks from a “hold (c+)” rating to a “buy (b)” rating in a research note on Wednesday, October 21st. BNP Paribas Exane upgraded shares of Arista Networks to a “strong-buy” rating in a report on Wednesday, October 14th. Melius Research set a $305.00 target price on shares of Arista Networks in a report on Wednesday. Finally, Jefferies Financial Group set a $250.00 target price on shares of Arista Networks in a research report on Wednesday, August 5th. Two investment 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. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $238.67.

Key Arista Networks News

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

• Positive Sentiment: Arista reported third-quarter revenue of $3.66 billion, up 58.5% year over year and above the $3.33 billion analyst estimate. Adjusted EPS of $1.20 also topped the $1.08 consensus. Management called it the company’s strongest revenue growth since its IPO. Article: Arista Networks Notches Biggest Revenue Gain Since 2014 IPO
• Positive Sentiment: Fourth-quarter guidance came in well above expectations. Management also indicated 2027 revenue could reach roughly $18.5 billion, with AI-related networking revenue expected to about double to approximately $7 billion—reinforcing the growth opportunity from AI and data-center buildouts. Article: Arista Networks Q3 2026 Earnings Call Highlights
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating and set a $280 price target, signaling confidence in further potential. Article: Rosenblatt Reaffirms Buy Rating
• Neutral Sentiment: Major shareholder Andreas Bechtolsheim sold 267,892 shares under a pre-arranged Rule 10b5-1 plan. The sale reduced his ownership by just 0.15%, leaving him with about 180.3 million shares. Article: Major Shareholder Andreas Bechtolsheim Sells Shares
• Negative Sentiment: Gross margin slipped as product sales made up a larger portion of revenue, a potential offset to the strong growth. Article: Arista Revenue Up 58% as Q4 Outlook Slows

Insider Transactions at Arista Networks

In other news, CEO Jayshree Ullal sold 573,509 shares of the firm’s stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $208.13, for a total transaction of $119,364,428.17. Following the transaction, the chief executive officer owned 25,000 shares in the company, valued at approximately $5,203,250. This trade represents a 95.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of the business’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $198.95, for a total transaction of $59,685,000.00. Following the completion of the sale, the insider owned 180,543,048 shares of the company’s stock, valued at approximately $35,919,039,399.60. This represents a 0.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 2,487,846 shares of company stock worth $503,417,253. Company insiders own 2.70% of the company’s stock.

Arista Networks Company Profile

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.

Arista’s portfolio includes data center and campus switches, routing platforms, wireless networking products, network operating software and network management tools.