Arista Networks Q3 revenue beats estimates on strong momentum across customer sectors

Overview

• U.S. networking equipment maker's Q3 revenue rose 58.5% yr/yr, beating analyst expectations

• Non-GAAP diluted EPS for Q3 increased to $1.20 from $0.77 a year earlier

• Company cites momentum across customer sectors and new AI networking product launches for growth

Outlook

• Arista expects Q4 2026 revenue of $3.9-$4.0 bln

• Company sees Q4 2026 non-GAAP operating margin at 48-49%

• Arista forecasts Q4 2026 non-GAAP diluted EPS of $1.26-$1.30

Result Drivers

• AI NETWORKING PRODUCTS - Co said launch of open standards-based rack-scale architectures for AI networks contributed to growth

• CUSTOMER SECTOR MOMENTUM - Co cited strong momentum across customer sectors as a driver of results, per CEO Jayshree Ullal

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 29 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy"

• Wall Street's median 12-month price target for Arista Networks, Inc. is $244.00, about 48.7% above its November 2 closing price of $164.14

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 44 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)