10-Q · August 4, 2026
Arista delivered Q2 revenue of $3.0357 billion, up 37.7% year over year and 12.0% sequentially, while GAAP diluted EPS rose to $0.95 from $0.70 a year ago. Operating margin expanded to 45.4%, but gross margin remained…
Earnings analysis · 10-Q
ANET earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
The quarter showed very strong momentum, with revenue of $3.6576 billion and EPS of $1.20, while operating margin remained elevated at 44.9%. Revenue and EPS increased substantially versus both the prior quarter and…
Read full summary
The quarter showed very strong momentum, with revenue of $3.6576 billion and EPS of $1.20, while operating margin remained elevated at 44.9%. Revenue and EPS increased substantially versus both the prior quarter and prior year, although operating margin eased modestly sequentially. The principal concerns are concentrated customer demand, elevated AI-driven supply-chain commitments, tariffs and the uncertain durability of AI infrastructure spending.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.2
- Operating margin
- 44.9%
- Segment
- Product revenue: sequential growth was reported, but the filing extract does not provide a quantitative segment breakdown.
- Segment
- Service revenue: quantitative quarterly revenue was not disclosed in the provided filing extract.
What stood out
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Revenue accelerated sharply
Revenue was $3.6576 billion, up approximately 20.3% from $3.04 billion in the prior quarter and approximately 58.3% from $2.31 billion in the prior-year quarter.
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EPS growth outpaced revenue
Reported EPS was $1.20, up from $0.95 in the prior quarter and $0.67 in the prior-year quarter, representing sequential growth of approximately 26.3% and year-over-year growth of approximately 79.1%.
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Operating leverage remains strong
Operating margin was 44.9%, approximately 50 basis points below the prior-quarter 45.4% but 250 basis points above the prior-year 42.4%.
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AI demand remains customer-concentrated
Management expects concentrated customer demand to remain material: one end customer represented 16% of 2025 revenue and another represented 26%; the filing says large-customer buying patterns can create quarter-to-quarter volatility.
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Repurchase capacity remains available
The company had $817.9 million remaining under its $1.5 billion repurchase authorization at September 30, 2026, and repurchased no shares during the nine months ended September 30, 2026.
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Controls reported effective
The CEO and CFO concluded that disclosure controls were effective as of September 30, 2026, and the filing reported no material changes to internal control over financial reporting during the quarter.
What to watch
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Large-customer concentration
Revenue concentration remains material: one end customer represented 16% of 2025 revenue and another represented 26%. The filing warns that order timing, spending reductions, cancellations or changes in AI infrastructure priorities could materially affect quarterly results.
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Tariff and supply-chain exposure
The filing identifies escalating U.S. tariffs and retaliation as risks to production costs and gross margins. Products are primarily manufactured in Malaysia, Vietnam and Mexico, while additional products or components originate from China, Taiwan, Thailand and the Philippines.
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AI and regulatory uncertainty
AI-related demand is difficult to forecast and customers may overestimate AI build-out requirements, then cancel, delay or reduce orders. The filing also notes that GDPR penalties can reach 4% of prior-year annual revenue or €20 million, whichever is higher, increasing regulatory exposure for data and AI-related operations.
Management's outlook
The provided 10-Q extract does not include quantitative revenue or EPS guidance. Q4 outlook was provided separately in the November 3, 2026 earnings release rather than in the supplied 10-Q text.
Earlier filings 4
10-Q · May 5, 2026
Arista Networks reported a strong Q1 2026, with revenue reaching $2.709 billion and EPS at $0.87, both exceeding analyst expectations. The company experienced substantial year-over-year revenue growth of 35.1%,…
10-K · February 17, 2026
Arista’s 2025 10-K emphasizes a strategic pivot to a "Centers of Data" platform (AI, Data Center, Campus, WAN) anchored by EOS, NetDL and CloudVision and an expanded Etherlink hardware portfolio. Financially, 2025…
10-Q · November 5, 2025
Arista reported a strong Q3 with revenue of $2,308.3M, up $497.4M (+27.5%) year-over-year and $108.3M (+4.9%) sequentially. Gross margin was roughly stable at ~64.6% while operating margin compressed to 42.4%; diluted…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.