ANET · Earnings call · 2026Q2T · Full report
Liquidity and Cash Position
Arista Networks, Inc. · 2026-08-04 · Importance 49 · Surprise 32 · From source text
Cash, cash equivalents, and marketable securities increased to approximately $13.3 billion at the end of Q2 from $12.4 billion at the end of Q1. Arista generated approximately $1.1 billion of operating cash flow during the quarter, supported by earnings and higher deferred revenue. Inventory increased to $2.5 billion from $2.4 billion sequentially, while purchase commitments reached $9.7 billion and deferred revenue rose to approximately $6.9 billion from $6.2 billion. Management cautioned that elevated inventory balances and customer-specific acceptance clauses could create quarterly volatility in operating cash flow and product deferred revenue.
Key facts
- Cash, cash equivalents and marketable securities ended the quarter at approximately $13.3 billion, up from $12.4 billion at the end of Q1.
- Arista generated approximately $1.1 billion of cash from operations in the second quarter.
- DSOs were 68 days, up from 64 days in Q1.
- Accounts payable days were 57 days, up from 54 days in Q1.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | — | Cash, cash equivalents and marketable securities ended the quarter at approximately $13.3 billion, up from $12.4 billion at the end of Q1. |
| cash | positive | realized | — | Arista generated approximately $1.1 billion of cash from operations in the second quarter. |