Arista Networks (ANET) rose 6% after third-quarter revenue grew 58.5% to $3.66 billion, its fastest growth since its IPO, and management guided 2027 revenue to about $18.5 billion, up 38% to 40%. That is roughly $2 billion above the $16.4 billion analysts had expected before the report. Non-GAAP gross margin slipped to 64.0% from 65.2% a year earlier, while non-GAAP operating margin rose to 49.1% from 48.6% as costs grew more slowly than revenue. Microsoft and Meta accounted for 42% of Arista's 2025 revenue, and IDC data showed Nvidia's data center Ethernet switch revenue up 181.1% in the second quarter, versus 37.6% for Arista. The author considers the valuation near its usual level and finds the gross margin trade-off acceptable, with the fourth-quarter report in February the next check on the $18.5 billion outlook.
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Arista Networksdata centersartificial intelligenceearnings
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NVDA
▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/03/2026 | 206.69 |
| Change that session | +2.29% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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