Arista Networks reported third-quarter revenue of $3.66 billion, up 58.5% from a year earlier, marking the data center networking company’s fastest growth rate since its initial public offering.

Because Arista supplies the networking hardware inside large data centers, its quarterly results serve as a gauge of how much equipment customers are buying as they expand facilities built around AI workloads — demand the report directly tied to this quarter’s growth.

The results, reported Tuesday, Nov. 3, 2026, exceeded Arista’s own guidance of $3.3 billion in third-quarter revenue, a beat of roughly $360 million against management’s own forecast. Revenue was $2.31 billion in the same quarter of 2025.

Product sales drive growth

Product revenue accounted for most of the increase, rising to $3.19 billion from $1.91 billion in the third quarter of 2025. Services revenue contributed an additional $468 million.

Profitability also increased. GAAP net income reached $1.56 billion, or $1.22 per share. Non-GAAP earnings per share came to $1.20, compared with $0.77 a year earlier. GAAP figures follow standard accounting rules, while non-GAAP figures adjust for items a company treats as outside its core operating results, which is why the two measures can differ.

Chief Financial Officer Chantelle Breithaupt described the quarter with one word: “Trifecta.” She was referring to record revenue growth, record net income and record earnings per share being reported together.

Arista raises fourth-quarter guidance

Arista expects fourth-quarter revenue to range from $3.9 billion to $4.0 billion. The company forecast non-GAAP earnings per share of between $1.26 and $1.30.

At the midpoint, the outlook implies further sequential growth from the third quarter’s $3.66 billion. Whether fourth-quarter results land within that raised range, and how demand from AI-focused data center buildouts evolves, will be points to watch when the company next reports.

The company’s shares rose substantially in after-hours trading after the results were released.

For the first nine months of 2026, Arista reported revenue of $9.40 billion, up from $6.52 billion during the same period of 2025.

AI workloads support demand

Chief Executive Officer Jayshree Ullal said the quarter reflected Arista’s expanding presence in artificial intelligence. She pointed to broad momentum across the business and the company’s relevance to emerging AI workloads.

The increase in product revenue reflects demand for networking hardware as customers expand data centers focused on AI, according to the report. Product revenue rose from $1.91 billion to $3.19 billion year over year.

Ullal has led Arista since 2008. She runs the company with President and Chief Operating Officer Todd Nightingale and CFO Chantelle Breithaupt.

Services revenue, while smaller than product revenue at $468 million, represents recurring support revenue associated with Arista’s growing installed base. The report also noted that GAAP earnings per share of $1.22 were slightly higher than non-GAAP earnings per share of $1.20 in the quarter, an unusual arrangement that could be examined in future reports.

Source: CryptoBriefing