ANET · Earnings call · 2026Q3T · Full report
Supply Chain Commitments
Arista Networks, Inc. · 2026-11-03 · Importance 38 · Surprise 42 · From source text
Management said it has been investing heavily in long-term strategic agreements to secure silicon, PCB capacity, and memory. It expressed high confidence in delivering supply to its forecast, while noting that it has not placed every order for the coming year because it does not want to commit everything at a five-quarter lead time. The COO also said component and finished-goods lead times are generally shorter for enterprise products and somewhat longer for ultra-advanced hyperscale AI data-center products.
Key facts
- Arista purchase commitments were $11.4 billion at quarter end, up from $9.7 billion at Q2 end, mostly for chips related to new products and AI deployments.
- Arista added a memory agreement to purchase commitments; it is a multiyear agreement, and purchase commitments could increase further exiting Q4.
- Arista has invested heavily in long-term strategic agreements to secure supply of silicon, PCB capacity, and memory.
- Arista said it has very high confidence in its ability to deliver supply to the forecast.
- Arista said it has not placed every order for next year because it would not want to place everything at a five-quarter lead time.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | committed | -6.1% | Arista purchase commitments were $11.4 billion at quarter end, up from $9.7 billion at Q2 end, mostly for chips related to new products… |
| liability | negative | committed | — | Arista added a memory agreement to purchase commitments; it is a multiyear agreement, and purchase commitments could increase further… |