Arista reports record Q3 growth and raises FY2026 and FY2027 targets

Transcript intelligence

What changed

Compared with Q2, management raised its FY2026 revenue target from $12.6 billion to $13.3 billion and introduced a FY2027 target of $18.5 billion. The Q3 discussion also highlighted AVA and security services, campus networking, and longer-dated scale-up and optics plans alongside AI fabrics.

Guidance delta

FY2026 revenue outlook increased to $13.3 billion from the prior-quarter target of $12.6 billion. Management also outlined FY2027 revenue of $18.5 billion, implying 38–40% growth, according to the supplied call analysis.

Key takeaways

• Q3 revenue was $3.66 billion, up 58.5% year over year, and exceeded the supplied consensus estimate.
• Management raised FY2026 revenue guidance and provided a FY2027 revenue target, reflecting confidence in continued demand.
• AI fabrics remain a central growth driver, with campus networking, security offerings and AVA also emphasized.
• Management described supply-chain execution and inventory management as controlled, while analysts raised questions about supply assurances, spending and product mix.

Management priorities

• Scale AI-fabric deployments across scale-out, scale-across and scale-up markets.
• Expand campus networking, Zero Trust security and AVA within CloudVision.
• Increase manufacturing capacity and continue partnerships with accelerator vendors and cloud providers.
• Develop liquid-cooled switches and open co-packaged optics, with scale-up trials planned for 2027.