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Operating Margin Drivers

Arista Networks, Inc. · 2026-08-08 · Importance 61 · Surprise 74

Arista Networks' operating margin expanded 110 basis points year over year in Q2 2026. The improvement reflected expense discipline and operating leverage as revenue reached $3.036 billion. Management raised its 2026 operating-margin target to 48%-49%. The margin expansion offset the reported 220-basis-point gross-margin decline caused by customer mix.

Key facts

• Operating margin expanded 110 basis points year-over-year. source