Arista Networks Inc
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+ FollowMarket Cap$212.97B
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Earnings Call Q2 2026
August 4, 2026 - AI Summary
Strong results + raised outlook (good):
- Q2 revenue: just over $3.0B, +37.7% YoY, and above guidance of $2.8B.
- Q2 profitability: operating income ~$1.5B (49.9% margin); net income ~$1.3B (42.9% margin).
- Gross margin: 63.4% (down from 65.6% YoY, up from 62.4% QoQ).
- Guidance raise (3rd time in 2026): FY2026 revenue $12.6B (~+40% growth YoY), up from prior $11.5B (May) and +~$2.1B vs $10.5B Analyst Day goal.
- FY2026 product goals: Campus ≥ $1.25B, AI fabrics ≥ $3.5B.
- Q3 2026 guidance: revenue ~$3.3B, gross margin ~63%, operating margin 48–49%, diluted EPS $1.06–$1.08.
Supply chain is improving materially but not “fixed” (surprising/good with a caveat):
- Management repeatedly emphasized the industry still faces a multi-year supply problem; they explicitly said the industry may have a 2-year problem and they don’t expect resolution until ~2028.
- Still, Arista claims meaningful progress: improved lead times/inventory management across thousands of SKUs, new supplier qualification/optionality, improved delivery terms, and capacity increases in manufacturing and distribution.
Big enabler: multiyear purchase commitments + expanded manufacturing/distribution + liquid cooling (good but risk is working capital):
- Multiyear purchase commitments increased to ~$9.7B (from $8.9B end of Q1), described as key to securing components.
- Manufacturing/distribution expansion: 3 contract manufacturers and 3 distribution facilities (U.S., Asia, Mexico) for geographic diversity.
- Liquid cooling supply chain established (cold plates, quick disconnect, tubing capacity agreements) to support next-gen AI infrastructure.
- Working capital pressure risk: inventory rose to ~$2.5B (from ~$2.4B), with DSOs ~68 days (up from 64). They warned inventories/cash timing could be elevated while component timing balances.
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$72.38
59.4% downside
Current Fair Value
59.4% downsideOvervalued by 59.4% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $212.97 Billion |
|---|---|
| Enterprise Value | $215.78 Billion |
| Earnings per Share | $2.79 |
| Beta | 1.6 |
| Outstanding Shares | 1,258,900,000 |
Return
| Return on Equity | 27.33% |
|---|---|
| Return on Assets | 17.05% |
| Return on Invested Capital | 28.23% |
Valuation & Multiples
| P/E Ratio | 52.6 |
|---|---|
| PEG | 144.26 |
| Price to Sales | 22.31 |
| Price to Book Ratio | 16.23 |
| Enterprise Value to Revenue | 20.47 |
| Enterprise Value to EBIT | 45.22 |
| Enterprise Value to Net Income | 53 |
| Total Debt to Enterprise | 0.02 |
| Debt to Equity | 0.34 |
Revenue Sources
No data
Last Earnings Call
Report Date
November 3, 2026
EPS Estimate
$1.08
Consensus analyst estimateRevenue Estimate
$3.33 B
Consensus analyst estimateNext Earnings Call
Expected Date
February 11, 2027
EPS Estimate
$1.14
Consensus analyst estimateRevenue Estimate
$3.60 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.81, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.8095▼ 31.93% |
|---|---|
| Total Calls | 321,800▼ 97.06% |
| Total Puts | 260,500▼ 97.89% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 4.01%▼ 68.07% |
|---|---|
| Total Invested | $10.25B▼ 93.34% |
| Investors Holding | 974▼ 1389.00% |
About Arista Networks Inc
2,300 employees
CEO: Jayshree Ullal
Arista Networks is an industry leader in software-driven cloud networking solutions for large data center and campus environments. Arista's award-winning platforms deliver availability, agility, automation analytics and security through ...