AI-extracted from the 10-Q filed 2026-08-05 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q2 revenue grew 37.7% YoY to $3,035.7M on higher switching and routing shipments, while gross margin fell to 62.9% from 65.2% on large-customer discounts.
Biggest Revenue Drivers
Product$2,605.2M+38.8% YoY
Reflects healthy customer demand and higher shipments of our switching and routing platforms across our customer base
Service$430.5M+31.3% YoY
Continued growth in initial and renewal support contracts as our customer installed base has continued to expand
Biggest Revenue Drivers
Total revenue: $3,035.7M+37.7% YoY
Product$2,605.2M+38.8% YoY
Reflects healthy customer demand and higher shipments of our switching and routing platforms across our customer base
Within Product
Americas$2,337.9M77.0% of total revenue
Includes $2,319.6 million generated from the U.S. for the three months ended June 30, 2026
Service$430.5M+31.3% YoY
Continued growth in initial and renewal support contracts as our customer installed base has continued to expand
Largest Expense Items
Total cost of revenue$1,125.4M+46.9% YoY
Primarily driven by a corresponding increase in product and service revenues
Research and development$348.2M+17.4% YoY
Increased personnel costs of $33.3 million and new product introduction costs of $8.3 million
Sales and marketing$150.3M+18.8% YoY
Primarily driven by increased personnel costs due to headcount growth
General and administrative$33.8M+15.0% YoY
Increased slightly by $4.4 million versus the prior-year quarter
Margins: Gross margin decreased to 62.9% from 65.2% a year ago, primarily driven by an increased proportion of sales to large end customers who generally receive higher discounts. Management expects margin to keep fluctuating.
Watch Items from the Filing
Customer concentration: one end customer was 26% and another 16% of total revenue for the year ended December 31, 2025; timing of their orders is unpredictable.
Non-cancellable purchase commitments of $9.7 billion, with $9.4 billion expected within 12 months, raising excess/obsolete inventory and supplier liability risk.
Deferred revenue ended at $6,865.9 million and remaining performance obligations total $8.4 billion, with 91% expected to be recognized over the next two years.
Evaluation inventory rose to $616.0 million from $403.7 million, tied to customer trials and acceptance clauses that add quarterly revenue variability.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Lavender Robert GDirectorOption exercise · Aug 20, 2026
Scheinman DanielDirectorOption exercise · Aug 20, 2026
Congress trading in ANET
44 transactions in ANET reported by 16 members of Congress under the STOCK Act, most recent trade Jul 10, 2026. Reported transactions, not recommendations.
About Arista Networks, Inc. (ANET): stock profile, AI score and financials
Arista Networks, Inc. (ANET) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores ANET at 81.5/100 on a composite quality score built from its SEC filings, placing it at rank #20 of 2,925 stocks — the top 1% of the AI-ranked universe. ANET scores in the top quartile across balance sheet strength (96.1), free cash flow (94.9), profitability (92.5). Shareholder dilution risk is elevated at 24.4/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Arista Networks, Inc. reports quarterly revenue of $3.0B, net income of $1.2B, an operating margin of 45.4%. Top institutional holders of ANET by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, STATE STREET, based on the most recent SEC filings. ANET trades on the NYSE exchange and files with the SEC under CIK 1596532. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate ANET daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Arista Networks, Inc. directly from SEC EDGAR.