Technology
Arista's AI Networking Growth Hits Fastest Pace Since Its IPO
Revenue rose 58.5 percent to $3.66 billion, beating its own $3.3 billion guidance, as AI and enterprise customers drove demand for the networks connecting AI accelerators.
Arista Networks reported third-quarter revenue of $3.6576 billion on November 3, up 58.5 percent from $2.3083 billion a year earlier and up 20.5 percent from the second quarter, according to its earnings release filed with the SEC.
That was above its own guidance of about $3.3 billion and the fastest year-over-year growth since its initial public offering, the company said. GAAP net income was $1.5604 billion, up 82.9 percent year over year.
On an adjusted basis, earnings were $1.20 a share, against a Wall Street expectation of $1.08, according to FactSet, as reported by Dow Jones. GAAP earnings were $1.22 a share.
For the fourth quarter, Arista guided to revenue of $3.9 billion to $4.0 billion, a non-GAAP operating margin of 48 to 49 percent, and non-GAAP diluted earnings per share of $1.26 to $1.30.
Growth was attributed to AI and enterprise customers, including rack-scale AI architectures built with partners including AMD, Arm, Broadcom, Meta, Microsoft and Qualcomm. Management also raised its 2026 revenue outlook to $13.3 billion and pointed to about $18.5 billion in 2027 revenue.
Reporting: Morningstar
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