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ANET · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
An excellent quarter — revenue crossed $3B for the first time on 37.7% y/y growth driven by product sales, with operating margin expanding to 45.4% and net income up 36.5%, though gross margin compressed slightly on mix.
Net Income
$1,213M
up 36.5% y/y
Total Revenue
$3,036M
up 37.7% y/y
Operating Income
$1,378M
up 39.7% y/y
Gross Profit
$1,910M
up 32.8% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Product Revenue | $2,605 · +38.8% |
| Service Revenue | $431 · +31.4% |
| Total Revenue | $3,036 · +37.7% |
| Cost of Revenue | $1,125 · +46.8% |
| Gross Profit | $1,910 · +32.8% · 62.9% margin |
| R&D | $348 · +17.4% |
| SG&A | $184 · +17.9% |
| Operating Income | $1,378 · +39.7% · 45.4% margin |
| Other Income, net | $126 · +34.4% |
| Pretax Income | $1,504 · +39.3% |
| Tax Provision | $291 · +52.3% |
| Net Income | $1,213 · +36.5% · $0.95 diluted EPS |
Verdict: an excellent quarter — revenue crossed $3B for the first time on 37.7% y/y growth driven by product sales, with operating margin expanding to 45.4% and net income up 36.5%, though gross margin compressed slightly on mix.
OCF (6mo) $2,776.5M; no buybacks in Q2 (vs $983M in Q2'25); Q3'26 guidance: revenue ≈$3.3B, non-GAAP op margin 48-49%, non-GAAP diluted EPS $1.06-$1.08.
Source and notation
* marks non-cash / ≈ estimated. Source: Arista Networks press release / 10-Q (SEC EDGAR).
Open as an image: ANET, Q2 2026 (PNG) ↗ · for sharing and presentations · free to reuse, CC BY 4.0
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Chart: “ANET Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/anet/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/anet/q2-2026"><img src="https://whoreportstoday.com/t/anet/q2-2026/sankey.png" alt="ANET Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/anet/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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<a href="https://whoreportstoday.com/t/anet/q2-2026">ANET Q2 2026 earnings chart (Who Reports Today)</a>
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- First-ever $3B+ revenue quarter, up 37.7% y/y and 12.1% q/q, led by product revenue growth of 38.8%.
- GAAP gross margin fell to 62.9% from 65.2% y/y despite absolute gross profit growth of 32.8%, reflecting mix shift.
- Non-GAAP operating margin (49.9%) exceeds GAAP (45.4%) mainly due to $120.4M stock-based comp and $15.3M intangible amortization add-backs.
- Other income (expense), net of $126.3M (interest income on large marketable securities balance) added meaningfully to pretax income.
- No share repurchases this quarter versus $983M in Q2 2025, a notable capital-allocation shift.
- Effective tax rate roughly 19.4%, similar to prior year (17.7%), keeping net income growth close to pretax growth.
What distorts the picture in this report and what to watch beyond the headlines.
ANET — Arista Networks designs and sells cloud networking solutions for large data centers and high-performance computing environments.
The company specializes in Ethernet switches and network visibility tools, primarily serving enterprises and cloud providers from its base in Santa Clara, California.
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