Arista Networks (ANET) · Networking
Arista Networks Q2 2026 earnings: summary, key numbers & outlook
Results filed 4 Aug 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Arista Networks reported second quarter 2026 revenue of $3.036 billion, an increase of 37.7% from the second quarter of 2025, with non-GAAP diluted earnings per share of $1.02 and non-GAAP operating margin of 49.9%.
Arista delivered its first quarter with more than $3 billion in revenue. Revenue of $3.036 billion was up 37.7% from a year earlier and 12.1% from the first quarter of 2026. Non-GAAP diluted earnings per share were $1.02, against $0.73 a year ago. Operating margins improved, with non-GAAP at 49.9%. Gross margin fell from last year, to 62.9% GAAP and 63.4% non-GAAP. The company also introduced 1.6 Tbps AI networking platforms.
For the third quarter of 2026, management expects revenue of approximately $3.3 billion, a non-GAAP operating margin of 48 - 49% and non-GAAP diluted earnings per share between $1.06 and $1.08. The main tension is profitability. Gross margin is lower than a year ago, and the company flags tariffs, sole-source component supply and heavy dependence on a few large customers as risks. The operating margin guidance is slightly below the second quarter's 49.9%.
Key numbers
- Total revenue · GAAP
- $3.036 billion
- GAAP net income · GAAP
- $1.2B
- GAAP diluted EPS · GAAP
- $0.95
- Non-GAAP diluted EPS · non-GAAP
- $1.02
- GAAP gross margin · GAAP
- 62.9%
- Non-GAAP gross margin · non-GAAP
- 63.4%
- GAAP income from operations · GAAP
- $1.4B
- GAAP operating margin · GAAP
- 45.4%
an increase of 37.7% from the second quarter of 2025 and 12.1% from the first quarter of 2026
compared with $888.8 in the second quarter of 2025
compared with $0.70 in the second quarter of 2025
compared with $0.73 in the second quarter of 2025
compared with 65.2% in the second quarter of 2025
compared with 65.6% in the second quarter of 2025
compared with $986.2 in the second quarter of 2025
compared with 44.7% in the second quarter of 2025
| Segment or metric | Value | Change |
|---|---|---|
| Product revenue | $2.6B | compared with $1,877.0 in the second quarter of 2025 |
| Service revenue | $430.5M | compared with 327.8 in the second quarter of 2025 |
Where each number comes from
- Total revenue: “Revenue of $3.036 billion, an increase of 12.1% compared to the first quarter of 2026, and an increase of 37.7% from the second quarter of 2025.”
- GAAP net income: “Provision for income taxes | 291.4 | 191.4 | 539.9 | 332.6 Net income | $1,212.9 | $888.8 | $2,235.8 | $1,702.6”
- GAAP diluted EPS: “GAAP and non-GAAP diluted earnings per share of $0.95 and $1.02, respectively, compared to GAAP and non-GAAP diluted earnings per share of $0.70 and $0.73 in the second quarter of 2025.”
- Non-GAAP diluted EPS: “GAAP and non-GAAP diluted earnings per share of $0.95 and $1.02, respectively, compared to GAAP and non-GAAP diluted earnings per share of $0.70 and $0.73 in the second quarter of 2025.”
- GAAP gross margin: “GAAP gross profit | $1,910.3 | $1,438.6 | $3,587.1 | $2,714.7 GAAP gross margin | 62.9% | 65.2% | 62.4% | 64.5%”
- Non-GAAP gross margin: “Non-GAAP gross profit | $1,924.7 | $1,447.0 | $3,615.5 | $2,731.8 Non-GAAP gross margin | 63.4% | 65.6% | 62.9% | 64.9%”
- GAAP income from operations: “GAAP income from operations | $1,378.0 | $986.2 | $2,535.8 | $1,845.0 GAAP operating margin | 45.4% | 44.7% | 44.1% | 43.8%”
- GAAP operating margin: “GAAP and non-GAAP operating margin of 45.4% and 49.9%, respectively, compared to GAAP and non-GAAP operating margin of 44.7% and 48.8% in the second quarter of 2025.”
- Product revenue: “Revenue: Product | $2,605.2 | $1,877.0 | $4,916.5 | $3,569.5 Service | 430.5 | 327.8 | 828.2 | 640.1 Total revenue | 3,035.7 | 2,204.8”
- Service revenue: “Revenue: Product | $2,605.2 | $1,877.0 | $4,916.5 | $3,569.5 Service | 430.5 | 327.8 | 828.2 | 640.1 Total revenue | 3,035.7 | 2,204.8”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $3.0B | +37.7% | +12.1% |
| Operating income | $1.4B | +39.7% | +19.0% |
| Net income | $1.2B | +36.5% | +18.6% |
| Diluted EPS | $0.95 | +35.7% | +18.7% |
| Free cash flow | $1.1B | −10.4% | −35.7% |
| Gross margin | 62.9% | −2.3 pts | +1.0 pts |
| Operating margin | 45.4% | +0.7 pts | +2.7 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Revenue | third quarter of 2026 | approximately $3.3 billion |
| Non-GAAP operating margin | third quarter of 2026 | 48 - 49% |
| Non-GAAP diluted net income per share | third quarter of 2026 | between $1.06 and $1.08 |
Key takeaways
First $3 billion revenue quarter for Arista
Revenue was $3.036 billion, an increase of 12.1% compared to the first quarter of 2026, and an increase of 37.7% from the second quarter of 2025.
Operating margin rose while gross margin fell
Non-GAAP operating margin was 49.9% versus 48.8% a year ago, while non-GAAP gross margin was 63.4% versus 65.6%.
Non-GAAP EPS grew 40% year over year
Non-GAAP diluted EPS was $1.02 versus $0.73 in the second quarter of 2025. The release cites 40% growth in non-GAAP EPS.
Third-quarter guidance points to about $3.3 billion
Management expects revenue of approximately $3.3 billion, a non-GAAP operating margin of 48 - 49% and non-GAAP diluted EPS between $1.06 and $1.08.
Deferred revenue and cash balances grew sharply
Current deferred revenue was $5,100.7 million versus $4,002.6 million at December 31, 2025. Marketable securities were $11,053.1 million versus $8,779.1 million, and no stock was repurchased in the six months.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $1.9B * |
| Q1 2025 | $2.0B |
| Q2 2025 | $2.2B |
| Q3 2025 | $2.3B |
| Q4 2025 | $2.5B * |
| Q1 2026 | $2.7B |
| Q2 2026 | $3.0B |
| Q3 2026 | $3.7B |
Data
| Q1 2025 | $0.64 |
| Q2 2025 | $0.70 |
| Q3 2025 | $0.67 |
| Q1 2026 | $0.80 |
| Q2 2026 | $0.95 |
| Q3 2026 | $1.22 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 41.4% |
| Q1 2025 | 42.8% |
| Q2 2025 | 44.7% |
| Q3 2025 | 42.4% |
| Q4 2025 | 41.5% |
| Q1 2026 | 42.7% |
| Q2 2026 | 45.4% |
| Q3 2026 | 44.9% |
Data
| Q1 2025 | $613.3M |
| Q2 2025 | $1.2B |
| Q3 2025 | $1.2B |
| Q1 2026 | $1.6B |
| Q2 2026 | $1.1B |
| Q3 2026 | $1.1B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Arista's second quarter 2026 revenue and growth?
Revenue was $3.036 billion, up 37.7% from the second quarter of 2025 and 12.1% from the first quarter of 2026. It was the company's first $3+ billion revenue quarter.
What was Arista's EPS in Q2 2026?
GAAP diluted EPS was $0.95 and non-GAAP diluted EPS was $1.02, against $0.70 and $0.73 a year earlier.
What is Arista's guidance for the third quarter of 2026?
Management expects revenue of approximately $3.3 billion, a non-GAAP operating margin of 48 - 49% and non-GAAP diluted EPS between $1.06 and $1.08.
How did Arista's margins change?
Non-GAAP operating margin rose to 49.9% from 48.8%, and GAAP operating margin rose to 45.4% from 44.7%. Gross margin fell: GAAP was 62.9% versus 65.2%, and non-GAAP was 63.4% versus 65.6%.
What risks did Arista highlight?
The release lists U.S. tariffs and countermeasures, sole or limited component suppliers, supply constraints, reliance on a predominant merchant silicon vendor, and large purchases by a limited number of customers.
Documents
SEC filing