Arista Networks soars 13% on strong Q2 beat and raised outlook

Investing.com -- Arista Networks, Inc. (NYSE: ANET) reported second quarter results that exceeded analyst expectations and provided third quarter guidance well above consensus, sending shares up 13%.

The networking equipment company posted adjusted earnings per share of $1.02, beating the analyst estimate of $0.88 by $0.14. Revenue reached $3.04 billion, surpassing the consensus estimate of $2.83 billion and marking a 37.7% increase YoY from $2.20 billion in the second quarter of 2025. This represented Arista’s first quarter exceeding $3 billion in revenue. The company’s adjusted operating margin expanded to 49.9%, up from 48.8% in the year-ago period.

For the third quarter of 2026, Arista issued guidance that significantly exceeded analyst expectations. The company forecast revenue of approximately $3.3 billion, well above the consensus estimate of $2.95 billion. Adjusted EPS guidance of $1.06 to $1.08 also topped the analyst consensus of $0.92, with the midpoint of $1.07 representing a 16% premium to expectations.

"As we deliver our first $3 billion quarter in Q2 2026, it is clear that our Arista 2.0 platform strategy is compelling," stated Jayshree Ullal, Chairperson and CEO of Arista Networks. "Customers see networking as the central nervous system for infrastructure from the client to campus to data and AI centers."

CFO Chantelle Breithaupt noted that second quarter revenue increased 37.7% while adjusted EPS grew 39.7% compared to the prior year period.

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