Strong performance from Arista, Nokia’s peer in IP networks, and perhaps its strongest competitor. Arista is now guiding for +38–40% growth for the next year following record results!!
(For some reason I can’t add an image, but hopefully it works later)
Key Takeaways from Arista Q3 2026 Earnings Report
Record results and strong growth: Revenue rose to $3.66 billion (+58.5% YoY), representing the largest annual growth figure in the company’s public history. Operating margin was strong (49.1%).
AI networking infrastructure supercycle: The Arista 2.0 strategy and AI networking solutions are driving growth. The company guides full-year 2026 revenue at $13.3 billion (+48% YoY) and provided early guidance for 2027: $18.5 billion (+38–40% growth).
Scale-Across and Scale-Out: As AI clusters expand and become more disaggregated, demand for Arista’s Etherlink portfolio (switches/routers) is extremely strong. Scale-across networks account for about a third (and growing) of the AI networking business.
Optics outlook (Pluggables vs. CPO): According to founder Andy Bechtolsheim and management, traditional pluggable optical modules (pluggables) will maintain their dominance for a long time yet. Open CPO/NPO technology (Open Co-Packaged Optics) is not expected on a broader scale until the 2028–2030 timeframe.