How Arista Networks Beat Expectations in Q3 2021 Despite Supply Chain Issues

November 4, 2021

The company is experiencing booming demand as data center upgrades pick up steam.

Image source: Getty Images.

Key Points

  • Revenue and adjusted EPS increased a respective 24% and 22% year over year in Q3 2021.
  • Supply chain issues are increasing shipping times and component costs.
  • In spite of current problems, Arista has greater visibility into customers’ data center construction plans than ever before.
Shares of data center supplier Arista Networks have rocketed to new all-time highs this year. The stock price is up more than 75% year-to-date in 2021, including a 25% surge following the company’s third-quarter update on Nov. 1.

As a supplier of hardware for data center construction, supply chain issues were sure to crop up and hit Arista — and management did indeed expound on some of the problems it’s facing right now. But demand for its wares is strong enough right now that it did little to rain on the parade.

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