ANET · 8-K · 20261103PR000252

Income Tax Rate Changes

Arista Networks, Inc. · 2026-11-03 · Importance 35 · Surprise 46 · From source text

Third-quarter income tax provision was $355.1 million, compared with $224.1 million a year earlier. The effective GAAP tax rate was approximately 18.5% of pretax income, down from approximately 20.8% in the prior-year quarter. The lower rate coincided with pretax income rising to $1,915.5 million from $1,077.1 million; the release does not attribute the GAAP rate change to a specific cause.

Key facts

• For the nine months ended September 30, 2026, Arista's income tax provision was $895.0 million, compared with $556.7 million in 2025. source
• Effective Q4 fiscal 2025, Arista changed its methodology for calculating the income tax effect of non-GAAP adjustments; it continues to exclude direct excess tax benefits but no longer excludes discrete indirect effects of stock-based awards. source
• The retrospective application of Arista's non-GAAP tax methodology change increased Q3 2025 non-GAAP net income by $17.1 million and nine-month 2025 non-GAAP net income by $47.5 million. source

Impact estimates