Arista Networks Notches Biggest Revenue Gain Since 2014 IPO

Arista Networks is a computer networking company headquartered in Silicon Valley. (Dreamstime)

Key Points

Arista Networks reported third-quarter revenue of $3.66 billion, a 58.5% increase that marks its fastest year-over-year growth since its 2014 IPO.
The company’s third-quarter revenue and adjusted earnings of $1.20 a share both beat analyst expectations.
Arista Networks expects fourth-quarter revenue to reach between $3.9 billion and $4 billion.

Arista Networks expects fourth-quarter results to surge again after reporting better-than-expected third-quarter earnings and its fastest year-over-year revenue growth since its IPO more than a decade ago.

Third-quarter revenue rose 58.5% from a year earlier, to $3.66 billion, and the company reported adjusted earnings of $1.20 a share. Analysts expected revenue of $3.33 billion and adjusted earnings of $1.08 a share.

The stock was up more than 9% in after-hours trading.

Arista said fourth-quarter revenue was expected in the range of $3.9 billion to $4 billion, with adjusted earnings of $1.26 to $1.30 a share. The third quarter’s 58.5% revenue jump from a year earlier was the biggest such jump since the company’s 2014 initial public offering, it said.

CEO Jayshree Ullal said the third-quarter results surpassed even her high expectations. “This strong momentum across customer sectors highlights our increased relevance for the generative and agentic AI era,” she said.

Arista makes hardware, software, and AI data center infrastructure. Its stock was recently added to the S&P 100 .

The company is working with chip makers, including AMD, Arm, Broadcom, and Qualcomm, as well as Meta and Microsoft, on equipment for AI networks.

Write to Liz Moyer at liz.moyer@barrons.com

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