ANET · Arista Networks, Inc.

Arista delivered exceptional Q1 2026 results, with $2.709 billion in revenue — up 35.1% year-over-year and 8.9% sequentially — driven by surging demand for AI infrastructure solutions, including the newly announced XPO pluggable optics and universal AI spine platforms. Gross margin remained healthy at 61.9% GAAP (62.4% Non-GAAP), while operating leverage was maintained: GAAP operating margin was flat at 42.7% versus 42.8% a year ago, and Non-GAAP operating margin held firm at 47.8%, reflecting disciplined R&D and SG&A scaling. Net income rose to $1.023 billion (GAAP) and $1.108 billion (Non-GAAP), supporting $0.80 GAAP and $0.87 Non-GAAP diluted EPS — both materially above prior-year levels. Management attributed strength to execution amid dynamic macro and supply chain conditions, emphasizing customer satisfaction (NPS 89) and product leadership in AI networking. The Q2 2026 guidance — $2.8 billion in revenue, 46–47% Non-GAAP operating margin, and $0.88 Non-GAAP EPS — implies continued high-teens sequential growth and margin stability, reinforcing confidence in Arista’s positioning at the intersection of AI scale-out and secure client-to-cloud networking. Strong operating cash flow of $1.69 billion further validates earnings quality and financial flexibility.