CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$3.66 bln

$3.33 bln (19 Analysts)


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


Reuters Recommended Reads

  • Nov 2 - Marvell doubles down on AI boom with costly $115 billion Lumentum deal

  • Nov 2 - Lattice Semiconductor Q3 revenue more than doubles on AI-driven FPGA demand, AMI acquisition

  • Nov 2 - Israel's Tower Semi Q3 revenue growth of 33% tops estimates, sees faster Q4 growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.