Arista Networks Posts $3.04B Q2 Revenue, First Time Topping $3B — Crushes Wall Street Estimates
Arista Networks posted second-quarter revenue of $3.036 billion, surpassing $3 billion for the first time. Adjusted EPS came in at $1.02, beating estimates by $0.14, and the company guided third-quarter revenue to roughly $3.3 billion.
- Arista Networks posted record Q2 revenue of $3.036B, topping $3B for the first time and beating estimates
- Shares jumped 4.98% after the report, with Q3 revenue guided to about $3.3B
Arista Networks reported second-quarter fiscal 2026 revenue of $3.036 billion, surpassing $3 billion in quarterly revenue for the first time ever, according to an SEC Form 8-K filing disclosed on August 4 (local time).
📊 Price at time of writing (Aug 5, 2026, 07:06 KST)
$190.51 ▲ +3.04%
Q2 Results at a Glance
Revenue grew 37.7% year-over-year and 12.1% quarter-over-quarter. Demand for AI data center networking equipment drove the results, and margins improved as well.
- Revenue: $3.036 billion, up 37.7% year-over-year
- Adjusted EPS: $1.02, beating estimates by $0.14 (GAAP EPS: $0.95)
- Operating income: $1.378 billion (GAAP), operating margin of 45.4% (49.9% adjusted)
Next Quarter Outlook
The company guided third-quarter revenue to approximately $3.3 billion. It expects adjusted operating margin (excluding interest, taxes, depreciation and similar items) of 48–49% and adjusted EPS of $1.06–$1.08. CEO Jayshree Ullal said, 'Crossing $3 billion in quarterly revenue shows that our Arista 2.0 platform strategy is working.' CFO Chantelle Breithaupt added, 'Revenue grew 37.7% and EPS grew 39.7%, reflecting broad-based growth across the business.'
Market Reaction
Arista Networks shares rose 4.98% on August 4, the day after the earnings release, compared to the previous trading day. FactSet's consensus revenue estimate had been $2.83 billion, meaning actual revenue significantly exceeded expectations. Foreign media noted that both the quarterly results and the third-quarter guidance topped market expectations. As of 7:06 a.m. KST on August 5, shares stood at $190.51, up 3.04% from the previous close.
Revenue by Segment
- Product (hardware) revenue: $2.605 billion, up 38.8% year-over-year
- Service revenue: $430.5 million, up 31.3% year-over-year
This article was automatically generated based on the original SEC Form 8-K filing and foreign media reports, with the goal of delivering key data quickly after the announcement. Investors are advised to review the company's official filing before making trading decisions. Prices reflect the time of writing and may differ from current levels.
ANETFrequently Asked Questions
Why did Arista Networks post strong second-quarter results?
Growing demand for AI data center networking equipment drove revenue up 37.7% year-over-year, pushing quarterly revenue above $3 billion for the first time.
What does adjusted operating margin mean?
It's operating margin calculated excluding accounting items like interest, taxes, and depreciation. Arista's adjusted operating margin was 49.9% in Q2, higher than the 45.4% GAAP figure.
What is the outlook for the third quarter?
The company expects third-quarter revenue of approximately $3.3 billion, with adjusted operating margin of 48–49% and adjusted EPS of $1.06–$1.08.
How did the stock react after earnings?
Shares rose 4.98% on August 4, the day after the earnings release, compared to the previous trading day. As of 7:06 a.m. KST on August 5, the stock stood at $190.51, up 3.04% from the previous close.
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