ANET · Earnings call · 2026Q3T · Full report
Revenue Guidance and Outlook
Arista Networks, Inc. · 2026-11-03 · Importance 95 · Surprise 92 · No source text
Arista raised its FY 2026 revenue guidance to $13.3 billion, representing 48% annual growth, and forecast Q4 revenue of $3.9 billion to $4.0 billion. The initial FY 2027 outlook is 38% to 40% revenue growth, or approximately $18.5 billion at the midpoint. Within FY 2027, AI fabrics are expected to double to approximately $7 billion and cognitive campus revenue is expected to grow 60% to approximately $2 billion. Q4 gross margin is forecast at 63% to 64% and operating margin at 48% to 49%; FY 2027 gross margin is expected at 62% to 64% and operating margin at approximately 49%.
Key facts
- Arista expected AI fabrics to be its fastest-growing segment in 2027, doubling to approximately $7 billion.
- Arista increased its 2026 annual revenue guidance to $13.3 billion, representing 48% annual growth.
- Arista's initial 2027 outlook was annual growth of 38% to 40%, to approximately $18.5 billion.
- Arista's FY2027 revenue growth outlook was 38% to 40%, or approximately $18.5 billion at the midpoint.
- Arista expected cognitive campus to grow 60% to approximately $2 billion in 2027.
- Arista forecast Q4 revenue of $3.9 billion to $4 billion, putting FY2026 revenue just over $13.3 billion at the midpoint.
- Arista's 2026 baseline was $13.3 billion, with AI revenue of $3.5 billion and campus revenue of $1.25 billion.
- Arista expected FY2027 gross margin of 62% to 64%, operating margin of approximately 49% and an effective tax rate of approximately 21%.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | committed | +145.6% | Arista's FY2027 revenue growth outlook was 38% to 40%, or approximately $18.5 billion at the midpoint. |
| margin | negative | committed | -0.1% | Arista expected FY2027 gross margin of 62% to 64%, operating margin of approximately 49% and an effective tax rate of approximately 21%. |
| revenue | positive | committed | — | Arista increased its 2026 annual revenue guidance to $13.3 billion, representing 48% annual growth. |
| revenue | positive | probable | — | Arista said scale-up would be in early trials and not a material amount in 2027, but could contribute in 2028. |
| revenue | positive | probable | — | Arista said all sectors—AI, enterprise, specialty cloud providers and front-end networks—were doing well, with all expected to grow double… |