Arista Networks (ANET) investor relations material

Executive summary

• Achieved first-ever $3+ billion revenue quarter in Q2 2026, up 37.7% year-over-year, driven by strong AI and enterprise demand.

• Raised 2026 revenue guidance to $12.6 billion, projecting 40% annual growth, with momentum across all product sectors.

• Entered Fortune 500 and Russell 50, and named a Leader in the 2026 Gartner Magic Quadrant for Enterprise Wired and Wireless LAN.

• EMEA led geographic growth with 55% year-over-year revenue increase, followed by Americas at 36% and APAC at 31%.

• Introduced 1.6 Tbps AI fabric platforms and next-gen 7060XE7 Series, optimizing scale and power efficiency.

Financial highlights

• Q2 2026 revenue reached $3.036 billion, up 12.1% sequentially and 37.7% year-over-year, surpassing $2.8 billion guidance.

• Non-GAAP gross margin was 63.4%, aided by tariff refunds and favorable customer mix; GAAP gross margin was 62.9%.

• Non-GAAP operating income was $1.51 billion (49.9% margin), net income $1.3 billion (42.9% margin), and diluted EPS $1.02, up 39.7% year-over-year.

• Cash and marketable securities totaled $13.34 billion as of June 30, 2026; operating cash flow for the first half of 2026 was $2.78 billion.

• Product revenue for Q2 2026 was $2.605 billion; service revenue was $430.5 million.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $12.6 billion (40% growth); AI Fabrics goal at least $3.5 billion, campus revenue at least $1.25 billion.

• Q3 2026 guidance: revenue ~$3.3 billion, non-GAAP gross margin ~63%, operating margin 48%-49%, EPS $1.06-$1.08.

• Fiscal year gross margin expected at 62%-64%, operating margin 48%-49%, tax rate 21.5%.