ANET · Earnings call · 2026Q2T · Full report
Guidance and Outlook
Arista Networks, Inc. · 2026-08-04 · Importance 95 · Surprise 92 · In source text
Arista raised its 2026 revenue outlook to approximately $12.6 billion, representing 40% annual growth and increases of $2.1 billion versus the Analyst Day goal and $1.1 billion versus the May projection. Q3 revenue is guided to approximately $3.3 billion with gross margin near 63%, operating margin between 48% and 49%, and diluted EPS of $1.06 to $1.08. Management expects the incremental 2026 revenue to come from all product sectors, including AI, campus, core data-center front-end, enterprise, and routing. The company cited approximately two quarters of customer visibility, with potential upside if additional supply becomes available.
Key facts
- Arista increased guidance for 2026 revenue to $12.6 billion, projecting 40% annual growth.
- For fiscal 2026, Arista's campus revenue goal is at least $1.25 billion and AI fabrics goal is at least $3.5 billion within the $12.6 billion guide.
- Guidance for Q3: revenues of approximately $3.3 billion, gross margin of approximately 63%, operating margin between 48% and 49%, diluted EPS between $1.06 and $1.08 with approximately 1.279 billion diluted shares, and effective tax rate of approximately 21.5%.
- The $12.6 billion guidance is $2.1 billion above the Analyst Day goal of $10.5 billion and $1.1 billion above recent projections of $11.5 billion in May 2026.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | committed | +58.8% | The $12.6 billion guidance is $2.1 billion above the Analyst Day goal of $10.5 billion and $1.1 billion above recent projections of $11.5… |
| revenue | positive | committed | — | For fiscal 2026, Arista's campus revenue goal is at least $1.25 billion and AI fabrics goal is at least $3.5 billion within the $12.6… |
| revenue | positive | committed | — | Guidance for Q3: revenues of approximately $3.3 billion, gross margin of approximately 63%, operating margin between 48% and 49%, diluted… |
| margin | positive | committed | — | Guidance for Q3: revenues of approximately $3.3 billion, gross margin of approximately 63%, operating margin between 48% and 49%, diluted… |
| margin | positive | committed | — | Guidance for Q3: revenues of approximately $3.3 billion, gross margin of approximately 63%, operating margin between 48% and 49%, diluted… |
| net_income | positive | committed | — | Guidance for Q3: revenues of approximately $3.3 billion, gross margin of approximately 63%, operating margin between 48% and 49%, diluted… |