EarningsQ2 2026 Earnings Report
MX:ANET Q2 2026 EPS Results
Actual EPS$18.78
Consensus EPS$16.31
Beat/MissBeat by +$2.47
One Year Ago EPS$13.44
MX:ANET Q2 2026 Revenue Results
Actual Revenue$55.90B
Expected Revenue$52.12B
Beat/MissBeat by +$3.78B
YoY Revenue Growth+37.69%
Earnings Announcement Details
QuarterQ2 2026
Date08/04/2026
TimeAfter Close
Conference CallTuesday, August 4, 2026
MX:ANET Upcoming Earnings
Arista Networks's next earnings date is estimated for November 3, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:ANET Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strongly positive operational and financial picture: record quarterly revenue, robust profitability (near-50% operating margin), large cash balance and accelerated FY2026 revenue guidance to $12.6B driven by AI momentum and product innovation. Management also outlined meaningful supply-chain remediation progress (multiyear commitments, vendor qualification, added manufacturing/distribution capacity) and expanding international sales. Key risks highlighted include ongoing industry supply tightness with limited visibility (~2 quarters), YoY gross margin decline driven by mix and rising memory/silicon costs, elevated inventory and large purchase commitments that can strain near-term cash flow dynamics. Overall, the positives (revenue/guidance beat, margin targets, AI customer traction and product road map) materially outweigh the lowlights (supply constraints, margin pressure and working capital volatility).Company Guidance
Record Quarterly Revenue
Total revenue for Q2 FY2026 was just over $3.0 billion, marking the company's first $3 billion quarter and representing 37.7% year-over-year growth (above guidance of $2.8 billion).
Raised Full-Year 2026 Guidance
Company raised FY2026 revenue guidance to approximately $12.6 billion, implying ~40% annual growth; this is an incremental $2.1 billion above the Analyst Day goal ($10.5B) and $1.1 billion above the May 2026 projection ($11.5B).
Strong Profitability and Margins
Operating income was $1.5 billion (49.9% of revenue). Net income was $1.3 billion (42.9% of revenue). Diluted EPS was $1.02, a 39.7% increase versus $0.73 a year ago. Fiscal-year operating margin target increased to 48%–49%.
Cash Position and Cash Generation
Cash, cash equivalents and marketable securities ended Q2 at approximately $13.3 billion (up from $12.4B in Q1). The company generated ~ $1.1 billion of cash from operations in the quarter.
AI Momentum and Customer Traction
AI fabrics momentum: Etherlink customer base exceeded 100 cumulative customers (up from ~4–5 in 2024). AI fabrics target for 2026 is at least $3.6 billion, with Scale-Across expected to be ~30% of that (~$1.2B).
Product and Technology Innovations
Introduced new hardware and features including the 7060XE7 (100T capacity, 1.6T throughput) and first liquid-cooling options; software/features highlighted include Smart System Upgrade (SSU), Multipath Reliable Connection (MRC) and SRv6 routing for AI fabrics.
Supply-Chain Progress and Capacity Expansion
Made multiple supply-chain improvements: secured multiyear agreements, memory visibility into 2027 (DDR4, DDR5, NAND), qualified new suppliers, established liquid-cooling supply chain, expanded manufacturing to 3 contract manufacturers and 3 distribution facilities across U.S., Asia and Mexico.
International Revenue Growth
International revenues were $697.8 million, representing 23% of total revenue (up from 15.5% last quarter), signaling strong sequential international expansion and geographic mix shift.
MX:ANET Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed