ANET · Earnings call · 2026Q2T · Full report
Supply Chain Constraints
Arista Networks, Inc. · 2026-08-04 · Importance 32 · Surprise 24 · From source text
Management said industry-wide component tightness and rising costs persist, but Arista has secured multiyear agreements with strategic component vendors and qualified additional suppliers for memory, PCBs and optics. Memory supply is secured for 2026, with visibility into 2027 across DDR4, DDR5 and NAND, while improved terms, shorter lead times, subcomponent pipelining and multisourcing have reduced inventory risk. Arista also established a liquid-cooling supply chain covering cold plates, quick disconnects and tubing for next-generation AI infrastructure.
Key facts
- Arista's memory supply has been secured for 2026, and they have extended visibility well into 2027 across DDR4, DDR5 and NAND memory.
- Management expects the industry-wide supply tightness and rising component costs to persist and believes the industry will have a two-year problem and not be out of it until 2028.
- Inventory turns remained at 1.7 for the quarter; inventory was $2.5 billion, up from $2.4 billion last quarter.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | negative | probable | — | Management expects the industry-wide supply tightness and rising component costs to persist and believes the industry will have a two-year… |
| assets | positive | realized | — | Inventory turns remained at 1.7 for the quarter; inventory was $2.5 billion, up from $2.4 billion last quarter. |