Arista Networks, Inc.

Company facts

Industry

Computer Communications Equipment

Headquarters

Santa Clara, California

Most recent report

10-Q, filed Aug 5, 2026

Incorporated

Delaware

Filings on record

1,005+ filings

On EDGAR

CIK 1596532

Fiscal year ends

December

Filer status

Large accelerated filer

What to read: Jun 2026 10-Q

SECSift found 3 of 13 sections worth reading, with 2 positive, 6 notable, and 6 negative flags.

• Financial Statements (Item 1)

  Core financial data: P&L, cash flow, and key balance sheet details for Q2 and H1 2026.
  Notable

  • No share repurchases in H1 2026 vs $983M in H1 2025; $817.9M authorized remaining.
  Negative

  • Non-cancellable purchase commitments of $9.7B, up from $8.9B at March 31, 2026.

• Management's Discussion (Item 2)

  MD&A with detailed results, margin squeeze, customer concentration, huge purchase commitments.
  Positive

  • Cash, cash equivalents and marketable securities reached $13.3B at June 30, 2026, up from $12.4B at March 31, 2026; strong liquidity position.
  • Operating cash flow surged to $2,776.5M in H1 2026 from $1,841.8M in H1 2025, up 50.8%, driven by net income and deferred revenue growth.
  Notable

  • Deferred revenue increased $1.5B in H1 2026 due to customer contracts with acceptance terms and PCS contracts, signaling future revenue.
  Negative

  • Two end customers each exceeded 10% of revenue: one at 26%, the other at 16% of FY2025 revenue. Heavy reliance on key customers.
  • Gross margin fell to 62.9% Q2 and 62.4% H1 from 65.2% and 64.5% due to higher proportion of low-margin large customer sales.
  • Inventory increased $288.2M in H1 2026 (following $224.5M in H1 2025); elevated inventory raises risk of obsolescence and charges.
  • Accounts receivable increased $379.3M in H1 2026 from higher billings; may strain liquidity if collection slows.

• Risk Factors (Item 1A)

  Customer concentration (42% from two customers), tariff invalidation, and AI demand uncertainty are company-specific.
  Notable

  • Relies on Broadcom as primary merchant silicon vendor; any supply disruption or failed innovation could force costly redesigns.
  • U.S. Supreme Court ruled IEEPA tariffs invalid in Feb 2026; refunds via new CAPE system, but timing is uncertain.
  • Revenue growth slowed to 28.6% in FY2025 from 33.8% in FY2023, with AI demand creating volatility and forecast risk.
  • Completed VeloCloud acquisition in June 2025, adding integration risk and management distraction during a key AI ramp.
  Negative

  • Two end customers made up 42% of FY2025 revenue; loss or delay from either would materially hurt results.

What changed: Jun 2026 vs. Mar 2026

About 2% of ANET's Jun 2026 10-Q is new information. 11 paragraphs were added, 133 changed, and 27 removed. Below are the most important lines SECSift identified.

• Item 1A 57
• Item 2 28
• Item 1 20
• Item 5 3
• Item 4 2
• Item 6 2