ANET · Earnings call · 2026Q2T · Full report
Supply Chain Commitments
Arista Networks, Inc. · 2026-08-04 · Importance 89 · Surprise 82 · From source text
Arista increased multiyear purchase commitments to approximately $9.7 billion at the end of Q2 from $8.9 billion in Q1 and roughly $3.6 billion a year earlier. Management said the commitments primarily cover chips for new products and AI deployments, while memory supply is secured for 2026 with visibility into 2027 across DDR4, DDR5, and NAND. The company qualified additional suppliers, expanded PCB and optics capacity, and established liquid-cooling supply agreements covering cold plates, quick disconnects, and tubing. Manufacturing and distribution capacity now includes three contract manufacturers and three distribution facilities across the United States, Asia, and Mexico.
Key facts
- Arista's multiyear purchase commitments nearly tripled from $3.6 billion a year ago to approximately $9.7 billion by the end of Q2 2026.
- Purchase commitments at the end of the quarter were $9.7 billion, up from $8.9 billion at the end of Q1.
- Arista established a liquid cooling supply chain including cold plate, quick disconnect and tubing vendors with capacity agreements for new AI technology.
- Arista secured multiyear agreements with leading vendors of strategic components and qualified new suppliers to limit risk.
- Arista expects two quarters of customer visibility for supply and is guiding based on what they are confident they can get supply for.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | committed | — | Arista's multiyear purchase commitments nearly tripled from $3.6 billion a year ago to approximately $9.7 billion by the end of Q2 2026. |
| liability | negative | realized | — | Purchase commitments at the end of the quarter were $9.7 billion, up from $8.9 billion at the end of Q1. |