Arista Networks (ANET) — Earnings Preview Memo
Key Preview Takeaways
| Factor | Details & Signals to Watch |
|---|---|
| Q2 2026 Guidance | Revenue guide: ~$2.8B; Non-GAAP op margin: 46–47%; Non-GAAP EPS: ~$0.88; Gross margin: 62–63% |
| Full-Year 2026 Guidance | Revenue raised to $11.5B (+28% YoY); AI revenue target raised to $3.5B; Campus target held at $1.25B |
| Supply Chain Constraints | Management highlights ongoing industry-wide shortages (memory, silicon, wafers, optics); watch for impact on shipments, deferred revenue, and gross margin pressure. Purchase commitments up sharply to $8.9B. |
| AI/Cloud Demand | Demand remains at record highs, especially from hyperscalers, neoclouds, and specialty AI providers. Scale-across networking is now expected to be ~1/3 of AI revenue in 2026. |
