Arista Q2 2026: first $3 billion quarter, revenue up 37.7%
Arista's Q2 2026 was a beat-and-raise quarter: revenue of $3.04 billion rose 37.7% from a year ago, and non-GAAP EPS of $1.02 landed 13.0% above the $0.9026 consensus. The blemish is gross margin, down to 62.9% from 65.2%, and free cash flow that fell year over year. Read this as accelerating demand with thinner hardware margins, not a company running out of growth.
1 · Expected vs. Actual
Free preview belowNon-GAAP EPS of $1.02 beat the $0.9026 consensus estimate by 13.0% and rose 39.7% from $0.73 a year ago, while GAAP EPS of $0.95 rose from $0.70. The gap between the two is mostly $120.4 million of stock-based compensation and $15.3 million of intangible amortization added back. Operating margin also expanded, with GAAP at 45.4% versus 44.7% a year ago and non-GAAP at 49.9% versus 48.8%.
Revenue of $3.04 billion is Arista's first $3 billion quarter, up 37.7% from $2.20 billion a year ago and 12.1% from the prior quarter. Management had guided to about $2.8 billion for this quarter, so the actual number came in 8.4% above its own midpoint. Product revenue of $2.61 billion did most of the work, with service revenue of $430.5 million on top.
For Q3 2026, Arista guides to about $3.3 billion of revenue, a 48-49% non-GAAP operating margin and non-GAAP EPS of $1.06 to $1.08. That is 8.7% above this quarter's revenue and 43.0% above the $2.31 billion booked in Q3 2025. The guidance excludes stock-based compensation and other items, so compare it with the $1.02 non-GAAP figure, not the $0.95 GAAP one.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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