ANET · Earnings call · 2026Q3T · Full report

Operating Expense Trends

Arista Networks, Inc. · 2026-11-03 · Importance 52 · Surprise 56

Q3 operating expenses were $545.3 million, or 14.9% of revenue, compared with $411 million in Q2. R&D expense rose to $408.5 million from $278.1 million in Q2, reflecting investment in liquid cooling, high-radix switching and AI software; management said R&D would generally remain within 9% to 11% of revenue. Sales and marketing was $110.9 million, or 3% of revenue, down from 3.6% in Q2, while G&A increased to $25.9 million from $23.1 million.

Key facts

• Arista's R&D spending framework was 9% to 11% of revenue, with some quarters reaching that range as specific investments occur.
• Arista Q3 operating expenses were $545.3 million, or 14.9% of revenue, compared with $411 million in the prior quarter.
• Arista Q3 R&D expense was $408.5 million, or 11.2% of revenue, compared with $278.1 million in the prior quarter.
• Arista said it has heightened go-to-market investment in the United States, key verticals, and internationally, and that investments over the last year and last three years are paying off.
• Arista Q3 sales and marketing expense was $110.9 million, or 3% of revenue, down from 3.6% of revenue in the prior quarter.
• Arista Q3 G&A expense was $25.9 million, or 0.7% of revenue, compared with $23.1 million in the prior quarter.