ANET US S&P 500Russell 1000 Earnings call · transcribed from the recording
Arista Networks (ANET) · Q3 2026 results and valuation
Share price: $196.68 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 3 Nov 2026 and 4 Aug 2026
Net income up 28.7% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+28.7%
Net income vs Q2 2026
Guidance raised
Net income 1.56B vs 1.21B
Revenue +20.5%
Against the same quarter last year (Q3 2025) it is +82.9%, so it is not just seasonal.
2 · How management spoke
Typical
Less upbeat than 52% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Guidance ↑
With this backdrop, Arista Networks is now increasing its annual guidance for the fourth time in 2026 to 13.3 billion which represents a 48% annual…
Valuation
Is Arista Networks undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $176.70 a share — the stock trades 11% above it. Today's price assumes 21.6% growth a year.
Current price
$196.68
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+21.6% for 10 yrs
Fair value / share
$176.70
Buy below
$132.53
Price vs fair value
Overvalued 11%
Price vs buy-below price
Overvalued 48%
Management expects
Growth +48% · from the Q3 2026 report: “With this backdrop, we are now increasing our annual guidance for the fourth time in 2026 to 13.3 billion which represents a 48% annual growth.”
A guidance figure for growth, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
Arista Networks expects scale-up trials to begin in 2027, driving Ethernet to larger radics of 126 to 144 within a rack and across 1,000 across racks, with production expected for scale-up...
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Figure
Arista just delivered a standout quarter of $3.66 billion in revenue, which is translating to Arista Networks' annual growth of 58.5%.
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Last period
Arista Networks' renewed enthusiasm in fulfilling demand in the second half of '26 is expected to apply across all its product…
Source quote
“Our renewed enthusiasm in fulfilling demand in the second half of '26 is expected to apply across all our product... ...of $10.5 billion and an incremental $1.1 billion over our recent projections of $11.5 billion in May of 2026. And with that exciting guidance, I'd like to turn it over to none other than our Chief Financial Officer, Chantelle, for more financial specifics.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“This quarter we delivered record high revenue growth center IPO at 58.5%, partnered with robust operating margin above 49%.”
“Arista continues to demonstrate its commitment and focus on network innovation with additional investment in liquid cooling, high radic switching, and leading AI software.”
“At Arista we find ourselves in a position to address this ever-increasing total accessible market not just available market which now stands at north of 200 billion in 2030 therefore...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 3.66B | 3.04B | +20.5% | 2.31B | +58.5% |
| Gross profit | 2.33B | 1.91B | +21.7% | 1.49B | +56.1% |
| Operating income | 1.64B | 1.38B | +19.2% | 978.2M | +67.9% |
| Net income | 1.56B | 1.21B | +28.7% | 853.0M | +82.9% |
| EPS | 1.22 | 0.95 | +28.4% | 0.67 | +82.1% |
| P/E today 45.8 | 54.6 | 53.8 | +0.8 | 55.4 | −0.8 |
Topics
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Faded since Q2 2026
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Latest announcements
Official filings, newest first.
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