Arista Networks, Inc. · NYSE:ANET
Arista Networks — Q2 2026 Earnings Presentation
17 slides from Arista Networks's earnings presentation, Aug 4, 2026
Slide 1: Q2 FY 2026 Earnings
Q2 FY 2026 Earnings August 4, 2026 1 | Copyright © Arista 2026. All rights reserved.
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements - This presentation contains “forward-looking statements” regarding our future performance , including but not limited to guidance regarding revenue, non-GAAP gross ma rgi n, non-GAAP operating ma rgi n, diluted shares, non-GAAP tax rate for the thi rd quarte r
Slide 3: Revenue
Revenue in billions $3.036B Delivered first quarter of over ~$3.0B in revenue, up +37.7% Y/Y. $2.205B Above guidance revenue driven by strong growth across the product sectors as AI and enterprise demand continues. Q2-25 Q2-26 3 | Copyright © Arista 2026. All rights reserved.
Slide 4: Y/Y Revenue Growth %
Y/Y Revenue Growth % 2023 – 2026E Revenue CAGR of 29% Consistent Strong Revenue Growth: Increasing Y/Y revenue growth in 2024, 2025 and 2026. Momentum at Scale: Revenue growth has been accelerating powered by leadership in AI and cloud networking and increasing penetration of the enterprise market.
Slide 5: Deferred Revenue Change as a % of Revenue
Deferred Revenue Change as a % of Revenue Deferred Revenue has varied over time with major market cycles 29% AI Super Cycle Cloud Super Cycle 18% 16% 11% 9% 9% 9% 8% 8% 3% 3% 3% 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 | Copyright © Arista 2026. All rights reserved.
Slide 6: Deferred Revenue
Deferred Revenue in billions Future Revenue Visibility: Growth in $6.866B product shipments and service renewals provide a strong foundation for future revenue recognition. $6.199B Short Term Deferred Revenue in Q2-26 was $5.1B and Long Term Deferred Revenue was $1.8B. Q1-26 Q2-26 6 | Copyright © Ar
Slide 7: Purchase Commitments
Purchase Commitments in billions Leaning In to Meet Strong Demand: Purchase Commitments up to $9.7B, reflecting long-term capacity planning for critical components. Close Partnership with key suppliers has allowed Arista to secure supply to meet increasing demand. 7 | Copyright © Arista 2026. All ri
Slide 8: Geographic Revenue Splits
Geographic Revenue Splits in billions $3.036B $0.260B Solid growth across all geographies with $2.205B $0.438B strong new customer acquisition. $0.199B $0.282B EMEA revenue grew fastest with 55% Y/Y growth followed by Americas at 36% Y/Y and APAC at 31%. $2.338B $1.724B Q2-25 Q2-26 Americas EMEA APA
Slide 9: Gross Margin (Non-GAAP)
Gross Margin (Non-GAAP)1 Delivered above guidance gross margin 65.6% of 63.4%. Change versus the prior year was driven by customer mix. 63.4% The main drivers of the beat vs. Q2 guidance of 62%-63% were tariff refunds and customer mix. Q2-25 Q2-26 1Refer to the reconciliation between non-GAAP and GA
Slide 10: Operating Expense (Non-GAAP)
Operating Expense (Non-GAAP)1 in billions $0.411B Non-GAAP Operating Expenses as a percentage of revenue1 declined to 13.5%, down from 16.8% a year ago. $0.371B Strategic R&D investment to support innovation in liquid cooling, high-radix switching and AI-Optimized software offset by continued strong
Slide 11: Operating Income (Non-GAAP)
Operating Income (Non-GAAP)1 in billions $1.514B Exceptional Leverage: Non-GAAP Operating Income expanded to $1.51B, up +40.7% Y/Y ahead of revenue growth. $1.076B Operating Margin improved Y/Y to 49.9% 49.9%1 in Q2-26 from 48.8%1 in Q2-25. Op Margin 49.9% also represented a 2.1pp1 48.8% improvement
Slide 12: Net Income (Non-GAAP)
Net Income (Non-GAAP)1 in billions $1.302B $0.934B Earnings Velocity Accelerated: Produced solid quarterly non-GAAP net income of $1.30B, a +39.3% Y/Y increase fueled by robust top-line execution. Q2-25 Q2-26 1Amounts are non-GAAP; refer to the reconciliation between non-GAAP and GAAP in the appendi
Slide 13: EPS (Non-GAAP)
EPS (Non-GAAP)1 $1.02 Shareholder Value Creation: Delivered diluted non-GAAP EPS of $1.02, a +39.7% Y/Y increase supported by $0.73 exceptional operational performance. EPS of $1.02 came in significantly better than $0.88 guidance. Q2-25 Q2-26 1Refer to the reconciliation between non-GAAP and GAAP i
Slide 14: Operating Cash Flow
Operating Cash Flow in billions Robust Liquidity: Generated $1.1B in operating cash flow this quarter, driven by strong net income and growth in deferred $1.200B revenue balances. Q2-25 included a significant AI customer $1.083B contract within deferred revenue that did not repeat in Q2-26. Healthy
Slide 15: Third Quarter 2026 Guidance
Revenue ~$3.3B Gross Margin (non-GAAP)1 ~63% Guidance Operating Margin (non-GAAP)1 48%-49% Third Quarter 2026 EPS (non-GAAP)1 $1.06-$1.08 Diluted Shares 1.279B Non-GAAP Tax Rate1 21.5% 1Guidance for non-GAAP financial measures excludes certain items, including stock-based compensation expense, intan
Slide 16: Guidance and Growth Outlook
2026 Guidance Revenue $12.6B +40% Y/Y Gross Margin (non-GAAP)1 62% - 64% Operating Margin (non-GAAP)1 48% - 49% AI Fabrics Revenue Goal $3.50B+ Guidance and Campus Revenue Goal $1.25B+ Growth Outlook Non-GAAP Tax Rate1 ~21.5% Growth Outlook Revenue Growth FY23-FY26 ~29% CAGR 1Guidance for non-GAAP f
Slide 17: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation 1Prior period amounts have been updated to conform to the current period presentation to reflect the change in methodology for calculating non-GAAP income taxes associated with stock-based awards. The retrospective application of this change resulted in an i