ANET · 8-K · 20261103PR000252
Gross Margin Drivers
Arista Networks, Inc. · 2026-11-03 · Importance 26 · Surprise 14 · No source text
Third-quarter GAAP gross profit rose to $2,325.7 million from $1,490.2 million year over year. GAAP gross margin declined to 63.6% from 64.6%, a 1.0 percentage-point decrease, while non-GAAP gross margin fell to 64.0% from 65.2%. The release provides no specific cause for the year-over-year margin decline.
Key facts
- Q3 2026 GAAP gross profit was $2,325.7 million and GAAP gross margin was 63.6%, versus $1,490.2 million and 64.6% in Q3 2025. source
- Q3 2026 non-GAAP gross profit was $2,341.1 million and non-GAAP gross margin was 64.0%, versus $1,505.2 million and 65.2% in Q3 2025. source
- Q3 2026 cost of revenue was $1,331.9 million, comprising $1,255.1 million product cost and $76.8 million service cost. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | negative | realized | -1.2% | Q3 2026 non-GAAP gross profit was $2,341.1 million and non-GAAP gross margin was 64.0%, versus $1,505.2 million and 65.2% in Q3 2025. |
| margin | negative | realized | -1.0% | Q3 2026 GAAP gross profit was $2,325.7 million and GAAP gross margin was 63.6%, versus $1,490.2 million and 64.6% in Q3 2025. |