Arista Networks (ANET)

Arista Networks reported third-quarter 2026 revenue of $3.66 billion on 3 November, up 58.5 percent from a year earlier 1. The company called this its highest year-over-year revenue growth since its IPO 1.

Net income was $1,560.4 million against $853.0 million a year earlier 1. Diluted earnings per share under US accounting rules (GAAP) were $1.22, against $0.67 1.

The quarterly report says product revenue rose 66.9 percent, reflecting healthy demand for its switching and routing platforms 2. Gross margin, the share of revenue left after production costs, slipped to 63.6 percent from 64.6 percent 2.

The company ties margin pressure to higher product costs and tight supply of memory and silicon chips 2. It also says the long-term path of AI-driven networking demand is unknown, and two customers made up 26 percent and 16 percent of 2025 revenue 23.

Revenue grew from $5,860.2 million in 2023 to $7,003.1 million in 2024 and $9,005.7 million in 2025 3. Net income rose from $2,087.3 million to $2,852.1 million and then $3,511.4 million over the same three years 3.

In 2025 product revenue rose 28.8 percent to $7,576.9 million, which the annual report puts down to healthy demand and higher shipments of switching and routing platforms 3. Service revenue, mostly paid support contracts, rose 27.7 percent as the installed base grew 3.

Two customers each passed 10 percent of revenue in each of the last three years 2. One was 16, 15 and 21 percent and the other 26, 20 and 18 percent for 2025, 2024 and 2023 2.

Sales outside the Americas gained ground in 2025 3. The Americas were 79.1 percent of 2025 revenue, down from 81.8 percent in 2024, while Europe, the Middle East and Africa rose to 11.9 percent from 10.2 percent 3.

Gross margin was 64.1 percent in both 2024 and 2025 3. Research and development spending rose from $854.9 million in 2023 to $1,237.3 million in 2025 3.

In June 2025 Arista completed its purchase of the VeloCloud business from Broadcom, a cloud-delivered wide-area networking (SD-WAN) line, for $300.0 million in cash 23.

In May 2025 the board authorized a $1.5 billion stock repurchase program 2. No shares were repurchased in the first nine months of 2026, and $817.9 million of the authorization remained at 30 September 2026 2.

AI and data-center networking

Arista sells Ethernet switches and routers, and the software that runs them, to large cloud companies, AI specialists and enterprises 3. Its Etherlink family of over twenty products serves AI networks, and its flagships include the 7800R AI Spine, the 7060 AI Leaf and the 7700R4 Distributed Etherlink Switch 3.

The 10-K names Cisco as the historic leader in these markets, with Dell/EMC, Extreme Networks, Hewlett Packard Enterprise, Huawei, Juniper Networks, Nvidia and white box vendors also competing 3.

Campus, routing and software

The campus line covers spine and Power-over-Ethernet switches and Wi-Fi access points managed through CloudVision, and VeloCloud adds SD-WAN for branch sites 3. Routing platforms such as the 7280R4, 7500R3 and 7800R4 handle links between clouds and data centers 3.

Software ties it together: EOS, the operating system, NetDL, a data store for network telemetry, and CloudVision, the management platform 3. Product made up 84.1 percent of 2025 revenue and service 15.9 percent 3.

Plants, suppliers and people

Arista subcontracts most manufacturing to Jabil, Sanmina and Foxconn Hon Hai, in Malaysia, Vietnam, Mexico and other countries, and relies on Broadcom for its switching chips 3. It employed about 5,115 full-time workers at the end of 2025 3.

Jayshree Ullal is chairperson and chief executive, Chantelle Breithaupt is chief financial officer, and Todd Nightingale is president and chief operating officer 12.

Current pressures

The quarterly report says memory and silicon scarcity and tariff uncertainty have pressured gross margin 2. Non-cancellable purchase commitments stood at $11.4 billion on 30 September 2026, of which $9.3 billion are due within 12 months 2.

The umbrella, in words

The brands are Arista itself and its products EOS, CloudVision and VeloCloud, the last owned since the June 2025 purchase from Broadcom 23. The subsidiaries are listed in Exhibit 21.1 to the 10-K, and the filing does not single out any listed one 3.

Arista has invested in privately held companies, which the 10-K describes as startup or development stage 3. Arista leases about 180,000 square feet at its Santa Clara headquarters under a lease ending in March 2027, and bought land there in 2021 for a new building 3.

Control is spread: directors, executive officers and holders of more than 10 percent together own about 16.6 percent of the shares, the 10-Q says 2.

For the fourth quarter of 2026 the company expects revenue of $3.9 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 1. Non-GAAP figures leave out items such as stock-based pay 1.

Revenue already contracted but not yet recognized was $8.6 billion at 30 September 2026, and the company expects about 91 percent of it to be recognized over the next two years 2.

The company believes scale-up networking inside AI racks is a future incremental opportunity as the market moves toward open standards such as Ethernet for Scale-Up Networks (ESUN) 3. On 3 November it announced rack-scale designs with partners, supporting up to 144 accelerators per rack 1.

The company warns that gross margin could be hurt further if tariff or non-tariff measures escalate or supply worsens and costs cannot be passed on to customers 2. The Santa Clara headquarters lease ends in March 2027 3.