Arista Networks, Inc. (ANET) Q1 2026 Financial Results Summary

Release Date: May 5, 2026

Arista Networks, Inc. (NYSE: ANET), a leader in data-driven networking solutions, reported its financial results for the first quarter ended March 31, 2026. The summary of the results is detailed below:

Financial Highlights

• Revenue:
  • Total revenue reached $2.709 billion in Q1 2026.
  • This represents a 35.1% increase compared to $2.0048 billion in Q1 2025.
  • Compared to the previous quarter (Q4 2025), it saw an 8.9% increase from $2.484 billion.
• Cash Flow:
  • Strong cash flow from operations of $1.69 billion.
• Operating Margins:
  • GAAP operating margin slightly decreased to 42.7% from 42.8% in Q1 2025.
  • Non-GAAP operating margin remained steady at 47.8%.
• Earnings Per Share (EPS):
  • GAAP diluted earnings per share was $0.80, up from $0.64 in Q1 2025, reflecting a 25.0% increase.
  • Non-GAAP diluted EPS was $0.87, compared to $0.66 in Q1 2025, marking an increase of 31.8%.
• Customer Satisfaction:
  • Achieved a net promoter score (NPS) of 89, with 94% of customers expressing strong positive sentiments.

Company Developments

• XPO MSA Announcement:
  • Introduction of the XPO MSA aimed at optimizing networking infrastructure.
  • XPO is projected to reduce the number of networking racks by up to 75% and save 44% of floor space compared to traditional pluggable optics.
• AI Networking Solutions:
  • Launched advanced AI spine powered by the 7800 series, providing significant performance enhancements for AI applications.

Financial Outlook

For Q2 2026, the company expects to generate approximately $2.8 billion in revenue with:

• A projected non-GAAP operating margin of 46-47%.
• An expected non-GAAP diluted net income per share of approximately $0.88.

Cash and Shareholder Returns

• Dividends:
  • Arista Networks did not declare any quarterly dividends as part of their financial results.
• Share Repurchase Program:
  • No common stock repurchase was executed during this quarter.

Summary of Operational Metrics

• Gross Profit:
  • GAAP gross profit stood at $1.6768 billion, translating to a GAAP gross margin of 61.9%, down from 63.7% in Q1 2025.
  • Non-GAAP gross profit was $1.6908 billion with a non-GAAP gross margin of 62.4%, compared to 64.1% in Q1 2025.
• Operating Expenses:
  • Research and development expenditures totaled $343.7 million, compared to $266.4 million a year prior.
  • Sales and marketing expenses were $141.6 million, up from $116.6 million year-over-year.
• Net Income:
  • Net income increased to $1.0229 billion, compared to $813.8 million in Q1 2025, indicating a year-over-year growth of 25.7%.
• Balance Sheet:
  • Total assets as of March 31, 2026, were $21.6565 billion, up from $19.4486 billion at the end of 2025.
  • Stockholders' equity rose to $13.4871 billion, an increase from $12.3705 billion at the end of the previous year.

Arista Networks continues to position itself as a strong player in the networking industry while demonstrating growth and robust operational performance in Q1 2026.

Note: All amounts are in millions.

ARISTA NETWORKS, INC. Condensed Consolidated Income Statements

(Unaudited, in millions, except per share amounts)

	Three Months Ended March	2026	2025
Revenue:	Product	$ 2,311.3	$ 1,692.5
	Service	397.7	312.3
	Total revenue	2,709.0	2,004.8
Cost of revenue:	Product	961.9	672.7
	Service	70.3	56.0
	Total cost of revenue	1,032.2	728.7
	Gross profit	1,676.8	1,276.1
Operating expenses:	Research and development	343.7	266.4
	Sales and marketing	141.6	116.6
	General and administrative	33.7	34.3
	Total operating expenses	519.0	417.3
	Income from operations	1,157.8	858.8
	Other income (expense), net	113.6	96.2
	Income before income taxes	1,271.4	955.0
	Provision for income taxes	248.5	141.2
	Net income	$ 1,022.9	$ 813.8
Net income per share:	Basic	$ 0.81	$ 0.65
	Diluted	$ 0.80	$ 0.64
Weighted-average shares used in computing net income per share:	Basic	1,257.7	1,260.0
	Diluted	1,273.8	1,279.2

ARISTA NETWORKS, INC. Condensed Consolidated Balance Sheets

(Unaudited, in millions)

	March 31, 2026	December 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$ 2,789.5	$ 1,963.9
Marketable securities	9,563.7	8,779.1
Accounts receivable	1,923.8	1,886.9
Inventories	2,380.0	2,247.1
Prepaid expenses and other current assets	1,899.7	1,510.0
Total current assets	18,556.7	16,387.0
Property and equipment, net	250.3	203.1
Goodwill	416.1	416.1
Deferred tax assets	1,887.2	1,773.6
Other assets	546.2	668.8
TOTAL ASSETS	$ 21,656.5	$ 19,448.6
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$ 608.4	$ 651.7
Accrued liabilities	441.5	475.4
Deferred revenue	4,909.5	4,002.6
Other current liabilities	600.7 Disclaimer The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.