We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Add ANET Stock to Your Portfolio Post Solid Q3 Earnings?
Read MoreHide Full Article
Key Takeaways
ANET's Q3 revenues jumped 58.5% to $3.66B, while adjusted EPS surged 55.8% to $1.20, beating estimates.
ANET's AI networking benefits from rising Etherlink adoption, enterprise expansion and product innovation.
Arista's 2026 and 2027 earnings estimates rose 25.2% and 30.3%, respectively.
Arista Networks, Inc. (ANET - Free Report) reported strong third-quarter 2026 results, with revenues and adjusted earnings soaring year over year, driven by robust demand trends. Quarterly revenues surged 58.5% year over year to $3.66 billion, exceeding the consensus estimate of $3.31 billion by 10.41%. This marked the company's strongest annual revenue growth since its IPO, driven by robust artificial intelligence (AI) networking demand, enterprise expansion and improved supply chain execution. Arista also surpassed 100 Etherlink customers.
On a non-GAAP basis, earnings rose 55.8% year over year to $1.20 per share, beating the consensus estimate of $1.08 by 11.11%. Innovative product launches and steady customer additions backed by the company’s best-in-class portfolio strength led to top-line expansion, while steady margin improvement contributed to earnings growth.
ANET Rides on Strong AI Networking Demand
Arista witnessed accelerating demand for its AI networking solutions as customers expanded investments in large-scale AI infrastructure. The company's Ethernet-based networking architecture supports AI training and inference workloads across scale-out and scale-across deployments, enabling efficient connectivity across distributed computing environments.
Arista continues to expand its Etherlink portfolio, comprising at least 25 switches designed for AI networking applications. Management highlighted growing adoption of scale-across networking, which connects computing resources across multiple data centers. It expects this architecture to represent an increasing portion of AI networking deployments in 2027. The company is also advancing rack-scale networking designs through partnerships with leading accelerator providers. Initial scale-up trials are expected in 2027, with production anticipated in 2028.
Portfolio Strength Fuels Growth
Arista offers one of the broadest product lines of data center and campus Ethernet switches and routers in the industry, with industry-leading capacity, low latency, port density and power efficiency. Over the years, the company has introduced various products to meet the rising demands of AI/ML-driven network architectures. These innovations have enabled Arista to deliver a superior customer experience and increase customer engagement.
Arista has expanded its software platform beyond cloud data centers through automation, campus networking, routing and AI networking capabilities. The company's unified EOS (Extensible Operating System) architecture enables programmable networking across client, campus, cloud and AI environments while supporting advanced routing, observability and operational automation.
With customers deploying transformative cloud networking solutions, the company has announced several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. It has introduced cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. The versatility of Arista’s unified software stack across various use cases, including WAN routing and campus and data center infrastructure, has helped it to record steady top-line growth.
Image Source: Zacks Investment Research
Price Performance
Arista has surged 33.2% over the past year against the industry’s decline of 3.1%. It has lagged peers like Hewlett Packard Enterprise Company (HPE - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . While Hewlett Packard has gained 114.1%, Cisco is up 45.8% over this period.
One-Year ANET Stock Price Performance
Image Source: Zacks Investment Research
Estimate Revision Trend
Earnings estimates for Arista for 2026 and 2027 have increased 25.2% and 30.3%, respectively, to $4.13 and $5.12 over the past year. The uptrend in estimate revisions indicates that investors are bullish about the stock’s growth potential.
Image Source: Zacks Investment Research
End Note
With healthy revenue-generating potential driven by robust demand trends, Arista appears poised for solid growth momentum. Further, a strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers. Steady improvement in lead times and easing of supply-chain woes are major tailwinds.
Riding on robust growth dynamics and a favorable Zacks Rank, ANET appears primed for further price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.
View the Zacks #1 Rank List
Image: Bigstock
Should You Add ANET Stock to Your Portfolio Post Solid Q3 Earnings?
Key Takeaways
Arista Networks, Inc. (ANET - Free Report) reported strong third-quarter 2026 results, with revenues and adjusted earnings soaring year over year, driven by robust demand trends. Quarterly revenues surged 58.5% year over year to $3.66 billion, exceeding the consensus estimate of $3.31 billion by 10.41%. This marked the company's strongest annual revenue growth since its IPO, driven by robust artificial intelligence (AI) networking demand, enterprise expansion and improved supply chain execution. Arista also surpassed 100 Etherlink customers.
On a non-GAAP basis, earnings rose 55.8% year over year to $1.20 per share, beating the consensus estimate of $1.08 by 11.11%. Innovative product launches and steady customer additions backed by the company’s best-in-class portfolio strength led to top-line expansion, while steady margin improvement contributed to earnings growth.
ANET Rides on Strong AI Networking Demand
Arista witnessed accelerating demand for its AI networking solutions as customers expanded investments in large-scale AI infrastructure. The company's Ethernet-based networking architecture supports AI training and inference workloads across scale-out and scale-across deployments, enabling efficient connectivity across distributed computing environments.
Arista continues to expand its Etherlink portfolio, comprising at least 25 switches designed for AI networking applications. Management highlighted growing adoption of scale-across networking, which connects computing resources across multiple data centers. It expects this architecture to represent an increasing portion of AI networking deployments in 2027. The company is also advancing rack-scale networking designs through partnerships with leading accelerator providers. Initial scale-up trials are expected in 2027, with production anticipated in 2028.
Portfolio Strength Fuels Growth
Arista offers one of the broadest product lines of data center and campus Ethernet switches and routers in the industry, with industry-leading capacity, low latency, port density and power efficiency. Over the years, the company has introduced various products to meet the rising demands of AI/ML-driven network architectures. These innovations have enabled Arista to deliver a superior customer experience and increase customer engagement.
Arista has expanded its software platform beyond cloud data centers through automation, campus networking, routing and AI networking capabilities. The company's unified EOS (Extensible Operating System) architecture enables programmable networking across client, campus, cloud and AI environments while supporting advanced routing, observability and operational automation.
With customers deploying transformative cloud networking solutions, the company has announced several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. It has introduced cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. The versatility of Arista’s unified software stack across various use cases, including WAN routing and campus and data center infrastructure, has helped it to record steady top-line growth.
Image Source: Zacks Investment Research
Price Performance
Arista has surged 33.2% over the past year against the industry’s decline of 3.1%. It has lagged peers like Hewlett Packard Enterprise Company (HPE - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . While Hewlett Packard has gained 114.1%, Cisco is up 45.8% over this period.
One-Year ANET Stock Price Performance
Image Source: Zacks Investment Research
Estimate Revision Trend
Earnings estimates for Arista for 2026 and 2027 have increased 25.2% and 30.3%, respectively, to $4.13 and $5.12 over the past year. The uptrend in estimate revisions indicates that investors are bullish about the stock’s growth potential.
Image Source: Zacks Investment Research
End Note
With healthy revenue-generating potential driven by robust demand trends, Arista appears poised for solid growth momentum. Further, a strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers. Steady improvement in lead times and easing of supply-chain woes are major tailwinds.
The company delivered a trailing four-quarter average earnings surprise of 10.6%. Arista currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Riding on robust growth dynamics and a favorable Zacks Rank, ANET appears primed for further price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.