Arista Networks, Inc. ANET reported strong second-quarter 2026 results with both adjusted earnings and revenues beating the Zacks Consensus Estimate.
The company posted a strong 37.7% year-over-year revenue increase, reflecting broad-based growth across its artificial intelligence (AI), cloud and enterprise networking businesses, supported by healthy customer demand and improved product availability.
Net Income
GAAP net income in the reported quarter increased to $1.21 billion or 95 cents per share from $888.8 million or 70 cents per share in the year-ago quarter, driven by higher revenues.
On a non-GAAP basis, net income was $1.3 billion or $1.02 per share compared with $934.2 million or 73 cents per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of 89 cents.
Arista Networks, Inc. Price, Consensus and EPS Surprise
Arista Networks, Inc. price-consensus-eps-surprise-chart | Arista Networks, Inc. Quote
Revenues
Quarterly revenues increased to $3.04 billion from $2.2 billion in the prior-year quarter, mainly due to solid growth in both Product and Service segments. The top line beat the consensus estimate of $2.83 billion.
Net quarterly sales from Products totaled $2.61 billion compared with $1.88 billion in the year-ago quarter, driven by strong demand for AI and enterprise networking solutions and improved supply chain execution.
Service revenues increased to $430.5 million from $327.8 million, reflecting continued growth in the installed customer base and higher maintenance and support services.
Other Details
Non-GAAP gross profit rose to $1.92 billion from $1.45 billion for respective margins of 63.4% and 65.6%. Total operating expenses were $532.3 million, up from $452.4 million in the year-ago quarter. Non-GAAP operating income for the quarter increased to $1.51 billion from $1.08 billion, with respective margins of 49.9% and 48.8%.
Cash Flow & Liquidity
In the first six months of 2026, Arista generated $2.78 billion in cash compared with $1.84 billion in the year-ago period. As of June 30, 2026, the company had $2.29 billion in cash and cash equivalents and $338.8 million in other long-term liabilities.
Outlook
For the third quarter of 2026, management expects revenues to be approximately $3.3 billion, driven by healthy growth momentum and solid demand trends. Non-GAAP operating margin is expected to be 48-49%, and non-GAAP earnings per share are expected to be between $1.06 and $1.08.
Zacks Rank
Arista currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Keysight Technologies, Inc. KEYS is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.
Analog Devices, Inc. ADI is set to release third-quarter fiscal 2026 earnings Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.
Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.
Applied Materials, Inc. AMAT is scheduled to release third-quarter fiscal 2026 earnings on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting growth of 35.48% from the year-ago reported figure.
Applied Materials has a long-term earnings growth expectation of 32.44%. The company delivered an average earnings surprise of 6.06% in the last four reported quarters.
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