Arista Networks, Inc. ANET is scheduled to report third-quarter 2026 earnings after the closing bell on Nov. 3. The Zacks Consensus Estimate for revenues and earnings is pegged at $3.3 billion and $1.08 per share, respectively. Earnings estimates for Arista for 2026 have increased 0.9% to $4.12 per share over the past 60 days and jumped 1.3% to $5.12 per share for 2027.
ANET Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise History
The communications components provider delivered a four-quarter earnings surprise of 8.8%, on average, beating estimates on each occasion. In the last reported quarter, the company pulled off an earnings surprise of 14.6%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Arista for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Arista currently has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping the Upcoming Results
AI infrastructure remains a key growth driver for Arista. Its Etherlink portfolio has surpassed 100 cumulative AI fabric customers. The introduction of its 7060XE7 Series has extended Arista’s offerings into next-generation 1.6-terabit networking. These platforms are designed to support increasingly demanding AI workloads through high-bandwidth connectivity and advanced cooling options. Continued adoption of Ethernet-based AI infrastructure and expansion across scale-up, scale-out and scale-across deployments could support revenue growth in the September quarter.
During the quarter, Arista introduced AI-Driven Zero Trust Branch, integrating AI-powered security, identity-based access, and cloud-managed networking into a unified platform. The solution enhances branch protection, simplifies policy enforcement, improves operational efficiency, and enables secure, scalable connectivity for distributed enterprises and hybrid work environments. Such innovative product launches are expected to have a favorable impact on third-quarter results.
Arista's broader networking portfolio may provide additional support. Its software-driven Extensible Operating System, CloudVision platform and enterprise campus networking offerings help address requirements beyond hyperscale data centers. Growth in its installed customer base also supports demand for maintenance, support and other services.
Price Performance
Over the past year, Arista shares have gained 19.3% against the industry’s decline of 10.5%, lagging peers like Hewlett Packard Enterprise HPE and Cisco Systems, Inc. CSCO. Cisco has gained 54.2%, while Hewlett Packard has soared 150.9% during this period.
Image Source: Zacks Investment Research
Key Valuation Metric
From a valuation standpoint, Arista appears to be trading at a premium compared with the industry and above its mean. Going by the price/earnings ratio, the company's shares currently trade at 37.83 forward earnings, higher than 28.67 for the industry and lower than the stock’s mean of 45.
Image Source: Zacks Investment Research
Investment Consideration
Arista's growth outlook remains supported by expanding AI infrastructure investment, demand for high-speed Ethernet networking and continued product innovation. Supply chain execution is another important aspect. Management reported progress in supplier diversification, component availability and manufacturing capacity, but industry-wide component tightness and higher procurement costs persist. Arista's multiyear purchase commitments reached approximately $9.7 billion by the end of the second quarter, reflecting efforts to secure components and meet expected demand.
Based on our proprietary calculation, trailing 12-month return on invested capital (ROIC) is 27.1%, above Arista’s 10-year median of 23.9% and the 12.6% industry median; the 3-year median of 27.1% also shows that returns have remained elevated recently. ROIC helps investors assess whether growth is being generated with productive use of committed capital. Arista’s software-driven architecture, strong operating profitability and asset-light outsourced manufacturing model support attractive capital efficiency.
End Note
Arista enters the third quarter of 2026 with strong AI networking momentum and a growing product portfolio. A strong focus on innovation, broader enterprise adoption and supply chain improvements are major tailwinds. Upward estimate revision reflects growing investors’ confidence in the stock’s growth potential. With a Zacks Rank #2 and strong price performance, Arista appears to be a good investment option at present.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).