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

Arista Networks (NYSE:ANET) issued its quarterly earnings data on Tuesday. The technology company reported $1.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.08 by $0.12, FiscalAI reports. Arista Networks had a net margin of 39.97% and a return on equity of 33.92%. The firm had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.33 billion. During the same period in the prior year, the company posted $0.75 earnings per share. Arista Networks’s revenue for the quarter was up 58.5% on a year-over-year basis.

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 Performance

NYSE:ANET traded down $17.17 during mid-day trading on Thursday, hitting $161.31. The stock had a trading volume of 6,474,277 shares, compared to its average volume of 7,856,854. Arista Networks has a twelve month low of $114.52 and a twelve month high of $217.41. The stock has a market cap of $203.44 billion, a price-to-earnings ratio of 43.42, a PEG ratio of 1.97 and a beta of 1.61. The company’s 50 day simple moving average is $194.05 and its 200 day simple moving average is $165.34.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on ANET shares. Jefferies Financial Group set a $250.00 price objective on shares of Arista Networks in a report on Wednesday, August 5th. BNP Paribas Exane upgraded Arista Networks to a “strong-buy” rating in a research report on Wednesday, October 14th. Sanford C. Bernstein began coverage on Arista Networks in a report on Wednesday, September 30th. They set an “outperform” rating and a $250.00 price objective for the company. Rosenblatt Securities restated a “buy” rating and issued a $280.00 target price on shares of Arista Networks in a research note on Wednesday. Finally, Bank of America reiterated a “buy” rating and set a $240.00 target price (up from $200.00) on shares of Arista Networks in a research 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 issued a Hold rating to the company’s stock. According to MarketBeat.com, Arista Networks presently has an average rating of “Buy” and a consensus price target of $240.24.

Key Stories Impacting Arista Networks

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

• Positive Sentiment: Arista reported Q3 revenue of $3.66 billion, up 58.5% year over year and ahead of the $3.33 billion consensus. EPS of $1.20 also beat estimates of $1.08, and the company raised its 2026 revenue outlook to $13.3 billion. Article: ANET Q3 Earnings Beat Estimates on Strong AI and Enterprise Demand
• Positive Sentiment: The 2027 outlook exceeded Wall Street expectations: management is targeting about $18.5 billion in revenue, with AI-fabric sales expected to double to roughly $7 billion. This points to continued demand from AI data-center expansion. Article: Arista Networks Q3 Earnings Call Maps Out 2027 AI Expansion
• Positive Sentiment: Several analysts expressed confidence in the outlook. Bank of America reiterated Buy and raised its target to $240, while JPMorgan and Piper Sandler also raised their price targets. Article: Arista Networks gets BofA backing as 2027 growth outlook tops Street
• Neutral Sentiment: Director Mark Templeton and major shareholder Andreas Bechtolsheim disclosed stock sales under pre-arranged Rule 10b5-1 plans. Bechtolsheim’s sale was a small fraction of his remaining holdings, making the transactions less conclusive as a signal about the business outlook. Article: Arista Networks insider transactions
• Negative Sentiment: Gross margin pressure is a risk as hardware makes up more of sales, and Arista’s premium valuation leaves little room for weaker execution. These concerns may temper enthusiasm after the earnings-driven rally. Article: Arista Revenue Up 58% as Q4 Outlook Slows

Insider Buying and Selling

In related news, major shareholder Andreas Bechtolsheim sold 267,892 shares of the stock in a transaction on Friday, October 30th. The stock was sold at an average price of $171.19, for a total value of $45,860,431.48. Following the completion of the sale, the insider directly owned 180,275,156 shares in the company, valued at $30,861,303,955.64. This represents a 0.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Chantelle Breithaupt sold 1,224 shares of the business’s stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $215.00, for a total transaction of $263,160.00. Following the completion of the transaction, the chief financial officer owned 68,697 shares in the company, valued at approximately $14,769,855. The trade was a 1.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 2,380,998 shares of company stock valued at $482,687,801 in the last quarter. Corporate insiders own 2.70% of the company’s stock.

About Arista Networks

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.