Arista Networks (ANET) ANET Q1 Financial Results Summary
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Arista Networks, Inc. (ANET) Q1 2026 Financial Results Summary
Release Date: May 5, 2026
Arista Networks, Inc. (NYSE: ANET), a leader in data-driven networking solutions, reported its financial results for the first quarter ended March 31, 2026. The summary of the results is detailed below:
Financial Highlights
- Revenue:
- Total revenue reached $2.709 billion in Q1 2026.
- This represents a 35.1% increase compared to $2.0048 billion in Q1 2025.
- Compared to the previous quarter (Q4 2025), it saw an 8.9% increase from $2.484 billion.
- Cash Flow:
- Strong cash flow from operations of $1.69 billion.
- Operating Margins:
- GAAP operating margin slightly decreased to 42.7% from 42.8% in Q1 2025.
- Non-GAAP operating margin remained steady at 47.8%.
- Earnings Per Share (EPS):
- GAAP diluted earnings per share was $0.80, up from $0.64 in Q1 2025, reflecting a 25.0% increase.
- Non-GAAP diluted EPS was $0.87, compared to $0.66 in Q1 2025, marking an increase of 31.8%.
- Customer Satisfaction:
- Achieved a net promoter score (NPS) of 89, with 94% of customers expressing strong positive sentiments.
Company Developments
- XPO MSA Announcement:
- Introduction of the XPO MSA aimed at optimizing networking infrastructure.
- XPO is projected to reduce the number of networking racks by up to 75% and save 44% of floor space compared to traditional pluggable optics.
- AI Networking Solutions:
- Launched advanced AI spine powered by the 7800 series, providing significant performance enhancements for AI applications.
Financial Outlook
For Q2 2026, the company expects to generate approximately $2.8 billion in revenue with:
- A projected non-GAAP operating margin of 46-47%.
- An expected non-GAAP diluted net income per share of approximately $0.88.
Cash and Shareholder Returns
- Dividends:
- Arista Networks did not declare any quarterly dividends as part of their financial results.
- Share Repurchase Program:
- No common stock repurchase was executed during this quarter.
Summary of Operational Metrics
- Gross Profit:
- GAAP gross profit stood at $1.6768 billion, translating to a GAAP gross margin of 61.9%, down from 63.7% in Q1 2025.
- Non-GAAP gross profit was $1.6908 billion with a non-GAAP gross margin of 62.4%, compared to 64.1% in Q1 2025.
- Operating Expenses:
- Research and development expenditures totaled $343.7 million, compared to $266.4 million a year prior.
- Sales and marketing expenses were $141.6 million, up from $116.6 million year-over-year.
- Net Income:
- Net income increased to $1.0229 billion, compared to $813.8 million in Q1 2025, indicating a year-over-year growth of 25.7%.
- Balance Sheet:
- Total assets as of March 31, 2026, were $21.6565 billion, up from $19.4486 billion at the end of 2025.
- Stockholders' equity rose to $13.4871 billion, an increase from $12.3705 billion at the end of the previous year.
Arista Networks continues to position itself as a strong player in the networking industry while demonstrating growth and robust operational performance in Q1 2026.
Note: All amounts are in millions.
ARISTA NETWORKS, INC. Condensed Consolidated Income Statements
(Unaudited, in millions, except per share amounts)
| Three Months Ended March | 2026 | 2025 | |
|---|---|---|---|
| Revenue: | Product | $ 2,311.3 | $ 1,692.5 |
| Service | 397.7 | 312.3 | |
| Total revenue | 2,709.0 | 2,004.8 | |
| Cost of revenue: | Product | 961.9 | 672.7 |
| Service | 70.3 | 56.0 | |
| Total cost of revenue | 1,032.2 | 728.7 | |
| Gross profit | 1,676.8 | 1,276.1 | |
| Operating expenses: | Research and development | 343.7 | 266.4 |
| Sales and marketing | 141.6 | 116.6 | |
| General and administrative | 33.7 | 34.3 | |
| Total operating expenses | 519.0 | 417.3 | |
| Income from operations | 1,157.8 | 858.8 | |
| Other income (expense), net | 113.6 | 96.2 | |
| Income before income taxes | 1,271.4 | 955.0 | |
| Provision for income taxes | 248.5 | 141.2 | |
| Net income | $ 1,022.9 | $ 813.8 | |
| Net income per share: | Basic | $ 0.81 | $ 0.65 |
| Diluted | $ 0.80 | $ 0.64 | |
| Weighted-average shares used in computing net income per share: | Basic | 1,257.7 | 1,260.0 |
| Diluted | 1,273.8 | 1,279.2 |
ARISTA NETWORKS, INC. Condensed Consolidated Balance Sheets
(Unaudited, in millions)