Key Highlights

  • Third-quarter 2026 Revenue came in at USD 3,657.6 million, up 58.5% from USD 2,308.3 million a year earlier.
  • GAAP diluted EPS was USD 1.22, compared with USD 0.67, while non-GAAP EPS was USD 1.20.
  • Fourth-quarter revenue guidance sits between USD 3.9 billion and USD 4.0 billion, with a non-GAAP Operating Margin of 48% to 49%.
  • Cash and marketable securities totalled about USD 14.36 billion (calculated) at September 30, 2026.
  • Deferred revenue reached USD 6,839.5 million, of which USD 5,102.2 million was classed as current.

Pre-Open Move in Arista Networks (up USD 18.40, 10.83%)

Arista Networks (NYSE:ANET) was up 10.83%, or USD 18.40, at USD 188.31 in pre-market trading on November 4, 2026. That compares with Tuesday's close of about USD 169.91 (calculated). The move followed third-quarter results published in a press release dated November 3, 2026, after the regular session ended.

The link to the results is direct. Revenue of USD 3,657.6 million was well above the USD 3.3 billion the company had guided for the quarter, and the fourth-quarter outlook pointed higher again.

The Catalyst Explained

Total revenue grew 58.5% year over year from USD 2,308.3 million, and rose 20.5% sequentially. For the nine months ended September 30, 2026, revenue reached USD 9,402.3 million against USD 6,517.9 million a year earlier, an increase of about 44.3% (calculated).

Profit grew in dollar terms. GAAP income from operations was USD 1,642.4 million, compared with USD 978.2 million, while non-GAAP income from operations rose to USD 1,795.8 million from USD 1,121.9 million. GAAP Net Income came in at USD 1,560.4 million versus USD 853.0 million.

Margins told a mixed story. GAAP gross margin eased to 63.6% from 64.6%, and non-GAAP gross margin slipped to 64.0% from 65.2%. The non-GAAP operating margin improved to 49.1% from 48.6%, and the GAAP operating margin rose to 44.9% from 42.4%.

For the fourth quarter, the company guided to revenue of USD 3.9 billion to USD 4.0 billion, a midpoint roughly 8% above the third quarter (calculated), with non-GAAP diluted EPS of USD 1.26 to USD 1.30. Chief Executive Officer Jayshree Ullal said the strong momentum across customer sectors underlines the company's growing relevance in the generative and agentic AI era.

Business Overview and Recent Developments

Arista Networks designs and sells cloud and Data Center networking switches, routers and software. Its EOS operating system and CloudVision management tools are used by large cloud operators, enterprises and service providers, while its high-speed Ethernet products connect the server clusters that train and run artificial intelligence models.

The company reported nine-month Operating Cash Flow of USD 3,977.4 million, showing that revenue growth is converting into cash.

Second-quarter revenue works out to roughly USD 3.04 billion (calculated), so the third quarter added more than USD 600 million in a single step.

Balance Sheet and Risks

At September 30, 2026, cash and cash equivalents were USD 2,288.1 million and marketable securities were USD 12,070.9 million. Deferred revenue stood at USD 6,839.5 million, of which USD 1,737.3 million is non-current, pointing to a sizeable contracted base still to be recognised.

Risks include a gross margin drift of about 1.0 to 1.2 points year over year, customer concentration among large cloud operators, Supply chain costs and the pace of AI infrastructure spending. Pre-market prices can also reverse once regular trading opens.

Next Steps to Watch

Investors will watch whether the regular session confirms the pre-market gap and how fourth-quarter shipments compare with the USD 3.9 billion to USD 4.0 billion range. Gross margin direction, deferred revenue growth and commentary on AI cluster deployments will frame the next report.