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[8-K] Arista Networks, Inc. Reports Material Event

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Arista Networks reported strong first-quarter 2026 results, with revenue of $2.709 billion, up 35.1% year over year and 8.9% from the prior quarter. Product revenue reached $2.311 billion and service revenue $397.7 million, driving GAAP operating margin of 42.7% and non-GAAP operating margin of 47.8%.

GAAP diluted EPS was $0.80 versus $0.64 a year ago, while non-GAAP diluted EPS rose to $0.87 from $0.66. Net income was $1.023 billion, and cash flow from operations was $1.6935 billion, lifting cash and cash equivalents to $2.7895 billion with total assets of $21.657 billion. For Q2 2026, Arista expects revenue of about $2.8 billion, non-GAAP operating margin of 46–47%, and non-GAAP diluted EPS of about $0.88. The company also highlighted new AI-focused offerings such as XPO liquid-cooled pluggable optics and a universal AI spine, and reported a 2026 net promoter score of 89, indicating very strong customer satisfaction.

Positive

  • Rapid, profitable growth: Q1 2026 revenue reached $2.709 billion, up 35.1% year over year, with GAAP and non-GAAP operating margins of 42.7% and 47.8%, respectively, and non-GAAP diluted EPS rising to $0.87 from $0.66.
  • Strong cash generation and balance sheet: Cash flow from operations was $1.6935 billion in Q1 2026, helping lift cash and cash equivalents to $2.7895 billion and total stockholders’ equity to $13.4871 billion.
  • Confident outlook and product momentum: Q2 2026 guidance targets roughly $2.8 billion in revenue and 46–47% non-GAAP operating margin, while new AI-focused offerings and a net promoter score of 89 indicate strong demand and customer satisfaction.

Negative

  • None.

Insights

Arista delivered rapid growth, strong margins, robust cash generation, and confident Q2 guidance.

Arista Networks grew Q1 2026 revenue to $2.709 billion, up 35.1% year over year and 8.9% sequentially, while maintaining a GAAP operating margin of 42.7% and non-GAAP operating margin of 47.8%. This combination of scale and profitability is notable for a hardware-centric networking business.

GAAP net income reached $1.0229 billion, with non-GAAP diluted EPS of $0.87 versus $0.66 a year earlier. Operating cash flow was very strong at $1.6935 billion, boosting cash and marketable securities and supporting a stockholders’ equity balance of $13.4871 billion as of March 31 2026.

Management’s Q2 2026 outlook calls for revenue of about $2.8 billion, non-GAAP operating margin of 46–47%, and non-GAAP diluted EPS of roughly $0.88. Alongside this, Arista emphasized AI-oriented innovations like XPO liquid-cooled pluggable optics and a universal AI spine, plus an NPS of 89, suggesting strong competitive positioning in AI data center networking.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Understanding 8-K Material Events →
0001596532False00015965322026-05-052026-05-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________
FORM 8-K
____________________________

 
CURRENT REPORT
 
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): May 5, 2026
___________________________________________________
ARISTA NETWORKS, INC.
(Exact name of registrant as specified in its charter)
___________________________________________________
Delaware 001-36468 20-1751121
(State or other jurisdiction of
incorporation)		 (Commission File Number) (IRS Employer Identification
No.)

5453 Great America Parkway
Santa Clara, CA 95054
(Address of principal executive offices) (Zip Code)
 
(408) 547-5500
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 par valueANETNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
☐



ITEM 2.02 Results of Operations and Financial Condition
On May 5, 2026, Arista Networks, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2026. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
This information and Exhibit 99.1 are intended to be furnished under Item 2.02, “Results of Operations and Financial Condition,” and Item 9.01, “Financial Statements and Exhibits,” of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
ITEM 9.01    Financial Statements and Exhibits
(d)    Exhibits

Exhibit No.Description
99.1
Press release issued by Arista Networks, Inc. dated May 5, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


ARISTA NETWORKS, INC.
May 5, 2026/s/ CHANTELLE BREITHAUPT
Chantelle Breithaupt
Senior Vice President, Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)



Exhibit 99.1
Arista Networks, Inc. Reports First Quarter 2026 Financial Results
•Revenue of $2.709 billion in Q1 2026, representing 35.1% year-over-year growth, with a robust cash flow from operations of $1.69 billion
•Announced the XPO MSA, designed to reduce networking racks by up to 75% and save up to 44% of floor space compared to traditional pluggable optics
•Received a 2026 net promoter score of 89, indicating that 94% of customers are strongly positive about the company
SANTA CLARA, Calif.- May 5, 2026 -- Arista Networks, Inc. (NYSE: ANET), an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments, today announced financial results for its first quarter ended March 31, 2026.
First Quarter Financial Highlights
"Arista is off to a strong start in Q1 2026, with both our results and our industry-leading net promoter score," said Jayshree Ullal, Chairperson and CEO of Arista Networks. “We are uniquely positioned to deliver the mission-critical confluence of secure client-to-campus-to-cloud and AI networking.”
•Revenue of $2.709 billion, an increase of 8.9% compared to the fourth quarter of 2025, and an increase of 35.1% from the first quarter of 2025.
•GAAP and non-GAAP operating margin of 42.7% and 47.8%, respectively, compared to GAAP and non-GAAP operating margin of 42.8% and 47.8% in the first quarter of 2025.
•GAAP and non-GAAP diluted earnings per share of $0.80 and $0.87, respectively, compared to GAAP and non-GAAP diluted earnings per share of $0.64 and $0.661 in the first quarter of 2025.
A reconciliation of the company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.
Commenting on the company's financial results, Chantelle Breithaupt, Arista’s CFO, said, ”We are proud of our strong start to Fiscal 2026. While the macro and supply chain environments remain dynamic, our results are a testament to our team's disciplined execution. Delivering 35% revenue growth alongside $0.87 non-GAAP EPS demonstrates our ability to drive high-quality growth while maintaining a rigorous focus on the bottom line."
Company Highlights
•Arista announced XPO high-density liquid-cooled pluggable optics – Designed for next-generation AI data centers, XPO reduces networking racks by up to 75% and saves up to 44% of floor space compared to traditional pluggable optics, enabling shorter cable runs and lower-power AI scale-up interconnect technologies such as copper and RF.
•Arista received a 2026 NPS Score of 89 – The updated net promoter score indicates that 94% of customers are strongly positive about the company. These industry-leading metrics are a testament to the company’s focus on driving customer success and satisfaction.
•Powering AI Centers with AI Spines – Arista introduced the universal AI spine powered by the 7800 to deliver massive scale, predictable performance, and high‑speed interface support. Powerful features such as Virtual Output Queuing (VOQ) eliminate head‑of‑line blocking and large buffers absorb AI microbursts and prevent PFC storms.
1 Prior period amounts have been updated to conform to the current period presentation. Refer to the Reconciliation of Selected GAAP to Non-GAAP Financial Measures for details

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Financial Outlook
For the second quarter of 2026, we expect:
•Revenue of approximately $2.8 billion;
•Non-GAAP operating margin of 46 - 47%; and
•Non-GAAP diluted net income per share of approximately $0.88.
Guidance for non-GAAP financial measures excludes certain items, including stock-based compensation expense, intangible asset amortization, tax benefits on stock-based awards, the income tax effect on non-GAAP exclusions, and potential non-recurring charges or benefits. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort because these exclusions can be uncertain or difficult to predict, including stock-based compensation expense and tax benefits on stock-based awards, which is impacted by the timing of employee stock transactions, and the future fair market value of the company’s common stock. The actual amount of these exclusions will have a significant impact on the company's GAAP gross margin, operating margin, and net income per share.
Prepared Materials and Conference Call Information
Arista's executives will discuss the first quarter 2026 financial results on a conference call today at 1:30 PM Pacific Time. To listen to the call via telephone, dial (888) 330-2502 in the United States or +1 (240) 789-2713 from international locations. The Conference ID is 5655862.
The financial results conference call will also be available via live webcast on Arista's investor relations website at https://investors.arista.com/. Shortly after the conference call concludes, a replay of the audio webcast will be available on Arista’s investor relations website.




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ARISTA NETWORKS, INC.
Condensed Consolidated Income Statements
(Unaudited, in millions, except per share amounts)
Three Months Ended March 31,
20262025
Revenue:
Product$2,311.3 $1,692.5 
Service 397.7 312.3 
Total revenue2,709.0 2,004.8 
Cost of revenue:
Product961.9 672.7 
Service 70.3 56.0 
Total cost of revenue1,032.2 728.7 
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 operations1,157.8 858.8 
Other income (expense), net 113.6 96.2 
Income before income taxes1,271.4 955.0 
Provision for income taxes248.5 141.2 
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 


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ARISTA NETWORKS, INC.
Reconciliation of Selected GAAP to Non-GAAP Financial Measures
(Unaudited, in millions, except percentages and per share amounts)
Three Months Ended March 31,
20262025
GAAP gross profit$1,676.8 $1,276.1 
GAAP gross margin61.9 %63.7 %
Stock-based compensation expense7.0 5.5 
Intangible asset amortization7.0 3.2 
Non-GAAP gross profit$1,690.8 $1,284.8 
Non-GAAP gross margin62.4 %64.1 %
GAAP income from operations$1,157.8 $858.8 
GAAP operating margin42.7 %42.8 %
Stock-based compensation expense120.9 93.0 
Intangible asset amortization15.3 5.6 
Non-GAAP income from operations$1,294.0 $957.4 
Non-GAAP operating margin47.8 %47.8 %
GAAP net income $1,022.9 $813.8 
Stock-based compensation expense120.9 93.0 
Intangible asset amortization15.3 5.6 
(Gains)/losses on strategic investments(2.8)(5.5)
Tax benefits on stock-based awards(1)
(34.4)(48.0)
Income tax effect on non-GAAP exclusions(1)
(13.7)(13.0)
Non-GAAP net income(1)
$1,108.2 $845.9 
GAAP diluted net income per share$0.80 $0.64 
Non-GAAP adjustments to net income per share(1)
0.07 0.02 
Non-GAAP diluted net income per share(1)
$0.87 $0.66 
Weighted-average shares used in computing diluted net income per share1,273.8 1,279.2 
Summary of Stock-Based Compensation Expense:
Cost of revenue$7.0 $5.5 
Research and development72.2 57.0 
Sales and marketing29.8 19.9 
General and administrative11.9 10.6 
Total$120.9 $93.0 

(1) Prior period amounts have been updated to conform to the current period presentation to reflect the change in methodology for calculating non-GAAP income taxes associated with stock-based awards. The retrospective application of this change resulted in an increase to non-GAAP net income of $19.7 million for the three months ended March 31, 2025. The impact of this change on non-GAAP diluted net income per share was an increase of $0.01 for the three months ended March 31, 2025. Please refer to the discussions under "Non-GAAP Financial Measures" for further information with respect to this change.


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ARISTA NETWORKS, INC.
Condensed Consolidated Balance Sheets
(Unaudited, in millions)
March 31, 2026December 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $2,789.5 $1,963.9 
Marketable securities9,563.7 8,779.1 
Accounts receivable1,923.8 1,886.9 
Inventories 2,380.0 2,247.1 
Prepaid expenses and other current assets 1,899.7 1,510.0 
Total current assets 18,556.7 16,387.0 
Property and equipment, net250.3 203.1 
Goodwill416.1 416.1 
Deferred tax assets 1,887.2 1,773.6 
Other assets546.2 668.8 
TOTAL ASSETS $21,656.5 $19,448.6 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $608.4 $651.7 
Accrued liabilities 441.5 475.4 
Deferred revenue 4,909.5 4,002.6 
Other current liabilities 600.7 246.8 
Total current liabilities 6,560.1 5,376.5 
Deferred revenue, non-current1,289.2 1,369.8 
Other long-term liabilities 320.1 331.8 
TOTAL LIABILITIES 8,169.4 7,078.1 
STOCKHOLDERS’ EQUITY:
Common stock0.1 0.1 
Additional paid-in capital 3,036.4 2,911.8 
Retained earnings 10,469.9 9,446.6 
Accumulated other comprehensive income (loss)(19.3)12.0 
TOTAL STOCKHOLDERS’ EQUITY 13,487.1 12,370.5 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $21,656.5 $19,448.6 


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ARISTA NETWORKS, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in millions)
Three Months Ended March 31,
20262025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,022.9 $813.8 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other23.3 13.8 
Stock-based compensation 120.9 93.0 
Deferred income taxes (104.9)(107.1)
Other(3.4)(12.1)
Changes in operating assets and liabilities:
Accounts receivable, net (36.9)(295.4)
Inventories (133.0)(122.7)
Other assets(298.7)(113.7)
Accounts payable (35.6)6.7 
Deferred revenue 826.2 297.4 
Income taxes, net352.9 241.3 
Other liabilities (40.2)(173.3)
Net cash provided by operating activities1,693.5 641.7 
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities739.9 799.2 
Proceeds from sale of marketable securities376.9 8.8 
Purchases of marketable securities(1,932.6)(1,545.5)
Purchases of property and equipment (54.5)(28.4)
Other5.0 — 
Net cash used in investing activities (865.3)(765.9)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under equity plans29.9 28.1 
Tax withholding paid on behalf of employees for net share settlement(26.2)(34.8)
Repurchases of common stock— (787.1)
Other(3.7)— 
Net cash used in financing activities— (793.8)
Effect of exchange rate changes (2.6)0.7 
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH825.6 (917.3)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period1,965.3 2,763.8 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period$2,790.9 $1,846.5 







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Forward-Looking Statements
This press release contains “forward-looking statements” regarding our future performance, including but not limited to quotations from management, and statements in the section entitled “Financial Outlook,” such as estimates regarding revenue, non-GAAP gross margin, and non-GAAP operating margin for the second quarter of 2026. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from those anticipated in or implied by the forward-looking statements including but not limited to risks associated with: escalated or escalating U.S. tariffs and countermeasures and retaliatory actions taken by other countries; some of the key components in our products come from sole or limited sources of supply, which increases the risk of supply shortages, extended lead times or supply changes; key component supply constraints and inventory management; our reliance upon a predominant merchant silicon vendor; enhanced import/export restrictions, as well as countermeasures taken by affected countries; large purchases by a limited number of customers who represent a substantial portion of our revenue; adverse economic conditions, continuing uncertain economic conditions or reduced information technology and network infrastructure spending; volatility in our revenue and revenue growth rates; variability in our gross margins; variations in our results of operations; the rapid evolution of the networking market; failure to successfully carry out new products and service offerings and expand into adjacent markets; intense competition and industry consolidation; expansion of our international sales and operations; investments in or acquisitions of other businesses, products or technologies; industry cyclicality; fluctuations in currency exchange rates; failure to raise additional capital on terms satisfactory to us; our inability to attract new large customers or sell additional products and services to our existing customers; inability to grow sales of switching and routing platforms which generate most of our product revenue; inability to increase market awareness or acceptance of our new products and services; decreases in the sales prices of our products and services; long and unpredictable sales cycles; inability to offer high quality support and services offerings; declines in maintenance renewals and support contracts by customers; product quality problems, defects, errors or vulnerabilities in our products; failure to anticipate technological shifts; our dependence on third-party manufacturers to build our products; assertions by third parties of intellectual property rights infringement, misappropriation or other violations; failure or inability to protect or assert our intellectual property rights; cybersecurity incidents and breaches of our cybersecurity systems, or other security or privacy breaches or incidents; failure to detect cybersecurity incidents; failure to comply with government law and regulations; issues in the development and use of artificial intelligence, combined with an uncertain regulatory environment; future decisions to reduce or discontinue repurchasing our common stock pursuant to our stock repurchase programs; and other future events. Additional risks and uncertainties that could affect us can be found in our most recent filings with the Securities and Exchange Commission, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. You can locate these reports through our website at https://investors.arista.com/ and on the SEC’s website at https://www.sec.gov/. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and we disclaim any obligation to publicly update or revise any forward-looking statement to reflect events that occur or circumstances that exist after the date on which they were made.
Non-GAAP Financial Measures
This press release and accompanying table contain certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted net income per share. These non-GAAP financial measures exclude stock-based compensation expense, intangible asset amortization, gains/losses on strategic investments, and the income tax effect of these non-GAAP exclusions, including the recognition of direct excess tax benefits associated with stock-based awards. Effective the fourth quarter of fiscal year 2025, the company updated its methodology for calculating the income tax effect of non-GAAP adjustments. Previously, the company’s calculation excluded all tax benefits associated with stock-based awards, consisting of both direct excess tax benefits and other discrete indirect effects. Under the updated methodology, the company continues to exclude direct excess tax benefits but

7

no longer excludes the discrete indirect effects of such awards. Management believes this change better aligns with industry practice and provides a more meaningful view of the company’s effective tax rate. All prior period non-GAAP results presented in this release have been recast to conform to the current period presentation.
The company uses these non-GAAP financial measures internally in analyzing its financial results and believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing operating results and trends. In addition, these measures are the primary indicators management uses as a basis for its planning and forecasting for future periods.
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP financial measures. Non-GAAP financial measures are subject to limitations and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not have any standardized meaning and are, therefore, unlikely to be comparable to similarly titled measures presented by other companies. A description of these non-GAAP financial measures and a reconciliation of the company’s non-GAAP financial measures to their most directly comparable GAAP measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.
About Arista Networks
Arista Networks is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. Its award-winning platforms deliver availability, agility, automation, analytics, and security through an advanced network operating stack. For more information, visit www.arista.com.
ARISTA, CloudVision, and Etherlink are among the registered and unregistered trademarks of Arista Networks, Inc. in jurisdictions around the world. Other company names or product names may be trademarks of their respective owners. Additional information and resources can be found at www.arista.com.
Investor Contacts: 
Arista Networks, Inc.
Investor Advocacy
Rudolph Araujo
Rod Hall
+1 (408) 547-8080
ir@arista.com

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