Arista (ANET) Delivers Strong Q3 Results and Expands AI-Focused Strategy

Arista Networks Inc. (NYSE:ANET) is one of the must-buy US stocks to buy now. On November 4, Arista Networks Inc. (NYSE:ANET) reported third-quarter revenue of $2.308 billion, up 27.5% year-over-year, with non-GAAP net income rising to $962.3 million.

The company maintained a strong non-GAAP gross margin of 65.2%, supported by favorable product mix and inventory dynamics. Its momentum in AI and cloud markets continues to build, with a 2026 revenue goal of $10.65 billion, including $2.75 billion from AI. Strategic partnerships with NVIDIA, AMD, and OpenAI have helped expand its reach, while innovations like Etherlink and Arista AVA aim to optimize performance for AI-driven workloads.

Arista Networks projects fourth-quarter 2025 revenue between $2.3 billion and $2.4 billion, with non-GAAP gross margins expected to range from 62% to 63%, and operating margins between 47% and 48%.

The company also announced leadership changes and new initiatives aimed at scaling AI and cloud networking. Kenneth Duda was named President and CTO, while Tyson Lamoreaux joined as SVP of Cloud and AI Networking. Arista unveiled Ethernet for Scale-Up Networks (ESUN) and introduced AI agents to enhance network operations. Looking ahead, revenue growth is expected to be supported by a continued focus on innovation and expansion of its presence in AI-driven infrastructure.

Arista Networks Inc. (NYSE:ANET) is a technology company that provides data-driven networking solutions for large data centers, campus environments, and cloud computing. It designs and sells high-performance network switches and other hardware, and also develops a Linux-based network operating system called EOS (Extensible Operating System).

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Disclosure: None. This article is originally published at Insider Monkey.