Arista Networks, Inc. (ANET) reported revenue of $3.036 billion for the quarter ended June 30, 2026, its first $3 billion quarter, as year-over-year growth accelerated to 37.7% from 35.1% in the first quarter.

The data-driven networking company also raised its third-quarter outlook to revenue of approximately $3.3 billion, non-GAAP operating margin of 48% to 49%, and non-GAAP diluted net income of $1.06 to $1.08 a share, versus the prior guide of about $2.8 billion in revenue, 46% to 47% non-GAAP operating margin, and about $0.88 non-GAAP EPS.

Chairperson and Chief Executive Jayshree Ullal said the first $3 billion quarter showed the company’s Arista 2.0 platform strategy was compelling, and that customers view networking as the central nervous system of infrastructure from the client to campus to data and AI centers. Chief Financial Officer Chantelle Breithaupt said the quarter reflected strong, broad-based growth, with revenue up 37.7% and EPS up 39.7%.

GAAP diluted earnings were $0.95 a share and non-GAAP diluted earnings were $1.02 a share, compared with $0.70 and $0.73 a year earlier. Non-GAAP diluted earnings rose 40% year over year. GAAP operating margin expanded to 45.4% and non-GAAP operating margin to 49.9%, from 44.7% and 48.8% in the second quarter of 2025. Sequentially, GAAP operating margin rose to 45.4% from 42.7% in the first quarter of 2026, and non-GAAP operating margin rose to 49.9% from 47.8%.

Product revenue was $2,605.2 million and service revenue was $430.5 million. GAAP gross margin compressed to 62.9% from 65.2% a year earlier, and non-GAAP gross margin compressed to 63.4% from 65.6%.

Arista introduced 1.6-terabit AI fabric platforms, including the 7060XE7 Series Etherlink portfolio, which delivers up to 100 terabits per second of system bandwidth and supports Linear Pluggable Optics, cutting interconnect power consumption by approximately 60% compared with traditional pluggable optics. The company also outlined liquid-cooled options and techniques for scale-up, scale-out, and scale-across AI fabrics, including multi-planar leaf-spine designs, the open Multipath Reliable Connection protocol, and segment routing over IPv6.

The company was named a Leader in the 2026 Gartner Magic Quadrant for Enterprise Wired and Wireless LAN and recognized on the 2026 Fortune 500 list of the largest United States corporations by revenue.

At June 30, 2026, cash and cash equivalents were $2,290.2 million and marketable securities were $11,053.1 million. Deferred revenue was $5,100.7 million, compared with $4,002.6 million at December 31, 2025. Inventories were $2,535.3 million.

For the six months ended June 30, 2026, revenue was $5,744.7 million, GAAP net income was $2,235.8 million, or $1.75 a share, and non-GAAP diluted net income was $2,409.9 million, or $1.89 a share. Net cash provided by operating activities was $2,776.5 million.

The company would discuss the results on a conference call at 1:30 p.m. Pacific Time on August 4, 2026.

Arista’s second-quarter result marked the first time the company cleared $3 billion of sales in a quarter, and the sequential lift from the first quarter’s $2.709 billion was 12.1%. The year-over-year rate of 37.7% was faster than the 35.1% pace recorded in the first quarter, the inflection the company highlighted alongside the $3 billion milestone. Product sales of $2,605.2 million remained the bulk of the mix, with service revenue at $430.5 million. Gross margins were lower than a year earlier on both GAAP and non-GAAP measures, while operating leverage widened: GAAP operating margin reached 45.4% and non-GAAP operating margin 49.9%. Diluted earnings of $0.95 GAAP and $1.02 non-GAAP compared with $0.70 and $0.73 a year earlier. The third-quarter guide of about $3.3 billion in revenue, 48% to 49% non-GAAP operating margin, and $1.06 to $1.08 non-GAAP EPS sits above the prior outlook issued with first-quarter results. Product introductions centered on 1.6-terabit Etherlink platforms and liquid-cooled AI fabric options. Cash and cash equivalents were $2,290.2 million and marketable securities $11,053.1 million at quarter-end, with deferred revenue of $5,100.7 million. The company also received a Gartner Magic Quadrant Leader designation for enterprise wired and wireless LAN and a place on the 2026 Fortune 500 list.