# Arista Networks (ANET) Q2 2026 earnings

Results filed 2026-08-04 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/anet/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1596532/000159653226000174/0001596532-26-000174-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenue | $3.036 billion | an increase of 37.7% from the second quarter of 2025 and 12.1% from the first quarter of 2026 | GAAP |
| GAAP net income | $1,212.9 | compared with $888.8 in the second quarter of 2025 | GAAP |
| GAAP diluted EPS | $0.95 | compared with $0.70 in the second quarter of 2025 | GAAP |
| Non-GAAP diluted EPS | $1.02 | compared with $0.73 in the second quarter of 2025 | non-GAAP |
| GAAP gross margin | 62.9% | compared with 65.2% in the second quarter of 2025 | GAAP |
| Non-GAAP gross margin | 63.4% | compared with 65.6% in the second quarter of 2025 | non-GAAP |
| GAAP income from operations | $1,378.0 | compared with $986.2 in the second quarter of 2025 | GAAP |
| GAAP operating margin | 45.4% | compared with 44.7% in the second quarter of 2025 | GAAP |
| Non-GAAP operating margin | 49.9% | compared with 48.8% in the second quarter of 2025 | non-GAAP |
| Net cash provided by operating activities (six months ended June 30, 2026) | 2,776.5 | compared with 1,841.8 in the six months ended June 30, 2025 | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Product revenue | $2,605.2 | compared with $1,877.0 in the second quarter of 2025 |
| Service revenue | 430.5 | compared with 327.8 in the second quarter of 2025 |

## 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

1. **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.
2. **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%.
3. **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.
4. **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.
5. **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.

## 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.