Arista Networks (ANET)
Arista Networks (ANET) builds the high-speed Ethernet switches that form the back-end fabric of AI data centers. In ETFpedia it represents the Optical Networking & Photonics concept, because every switch port it ships drives demand for optical interconnects, and it has raised its 2026 AI-networking revenue target to $3.5 billion.
| Ticker | ANET |
|---|---|
| Exchange | NYSE |
| Sector | Technology · Data-Center Networking |
| Country | United States |
| Held by ETF | KODEX US AI Optical Communication Network ETF (0173Y0) |
| Last updated | 2026-06-11 |
Next event: Next earnings · Q2 2026 , estimated · Date is analyst/calendar-estimated; confirm on Arista IR. Last report: Q1 2026 on 2026-05-05. (source)
Latest reported quarter: Q1 2026 (ended Mar 31, 2026) (reported 2026-05-05)
Arista posted revenue of $2.709 billion, up 35% year over year, with non-GAAP EPS of $0.87 and non-GAAP gross margin of 62.4%, and raised its full-year outlook and AI-networking target.
| Revenue | $2.709B +35% YoY |
|---|---|
| Non-GAAP EPS | $0.87 |
| GAAP EPS | $0.80 |
| Non-GAAP gross margin | 62.4% |
| Non-GAAP operating margin | 47.8% |
Revenue by segment
| Product | $2,311M · ~85% of revenue |
|---|---|
| Services | $398M · ~15% of revenue |
Guidance: Q2 2026 & full-year 2026 (raised)
| Q2 2026 revenue | ~$2.8B |
|---|---|
| FY2026 revenue | ~$11.5B · ≈ +27.7% |
| FY2026 AI-networking revenue target | $3.5B · more than 2x prior year |
Recent & upcoming events
Q1 results and the Q2 revenue/operating-margin guide are from the company press release; the $11.5B full-year outlook (27.7% growth) and $3.5B AI-networking target come from Q1 2026 earnings-call commentary, not the press-release body.
Figures are as of 2026-06-03 and reflect the most recent public filings/IR releases; they are updated after each earnings report.
What does Arista do?
Arista designs high-performance data-center and AI networking switches and routers, all running its single EOS operating system and CloudVision management software. Its customers are the “cloud titans,” large enterprises, and service providers. The software-driven model is what lets it win against incumbents, and it is now central to wiring AI back-end clusters (Arista, May 5, 2026).
The scale is substantial: full-year 2025 revenue reached $9.006 billion, up 28.6% from $7.003 billion in 2024, split between $7.577 billion of product revenue and $1.429 billion of services (Arista, Feb 12, 2026). Arista frames its platform around four “centers of data”: AI centers, data centers, campus, and WAN, all anchored by EOS and its Network Data Lake (NetDL) telemetry layer (Arista 10-K, FY2025).
2025 was the year of validation of our Arista 2.0 momentum, as we hit the milestone of shipping a cumulative of 150 million ports.
— Jayshree Ullal, Chairperson & CEO, Arista Networks (Q4 and year-end 2025 results, Feb 12, 2026)
How is AI driving Arista’s business?
AI training clusters need a vast Ethernet fabric to connect accelerators, and Arista’s 800G platforms are built for exactly that. On its Q1 2026 call, it raised its full-year AI-networking target sharply.
We also increased our AI target now to $3.5 billion this year, thereby more than doubling our AI sales annually.
— Jayshree Ullal, CEO, Arista Networks (Q1 2026 earnings call)
What did Arista report most recently?
In Q1 2026 (the quarter ended March 31, 2026), Arista reported revenue of $2.709 billion, up 35% year over year, with non-GAAP EPS of $0.87, non-GAAP gross margin of 62.4%, and non-GAAP operating margin of 47.8% (Arista). Product was about 85% of revenue and services the rest.
What is Arista’s guidance?
Arista guided Q2 2026 revenue to about $2.8 billion and raised its full-year 2026 outlook to roughly $11.5 billion (about 27.7% growth), alongside the $3.5 billion AI-networking target (earnings call).
Why is Arista part of optical networking?
Switches and optics are two sides of the same fabric: each 800G switch port terminates an optical transceiver. As Arista’s port count and speeds climb, it pulls through demand across the Optical Networking & Photonics supply chain, even though Arista itself sells the switch, not the optic.
What is Arista’s competitive moat?
Arista’s moat is software. Every product runs the same EOS code base, which cuts qualification time for hyperscalers and lets it ship features faster than rivals juggling multiple operating systems. The data-center and campus switching markets it serves have historically been dominated by Cisco, with competition also coming from Dell/EMC, Extreme Networks, Hewlett Packard Enterprise, Huawei, Juniper Networks, Nvidia, and white-box vendors built on open-source operating systems (Arista 10-K, FY2025). Against that field Arista keeps winning the highest-speed tiers: its Etherlink family spans more than twenty products for AI scale-out, including 800G switches, and cumulative port shipments crossed 150 million in 2025. The flip side of hyperscaler intimacy is dependence: its two largest customers alone were 26% and 16% of 2025 revenue (Arista 10-K, FY2025).
What are the risks for Arista?
- Cloud concentration. Two customers were 26% and 16% of 2025 revenue, so one titan’s capex pause would hit hard.
- Supply availability. Management has flagged component supply as a constraint on the growth guide.
- Competition. Nvidia (InfiniBand and Spectrum-X), Cisco, and white-box vendors all compete for AI fabric.
- Margin mix. A heavier cloud/AI mix can pressure gross margin versus enterprise.
Related securities, concepts & terms
Arista is also the networking layer of the US AI Data Center concept, wiring the GPU clusters of neoclouds like CoreWeave into single machines alongside its home in Optical Networking & Photonics.
- AI Infrastructure parent
- Optical Networking & Photonics parent
- US AI Data Center parent
- Broadcom (AVGO) sibling
- Marvell Technology (MRVL) sibling
Related indices & ETFs
- KODEX US AI Optical Communication Network ETF (0173Y0) · Samsung Asset Management (KODEX) Korea-listed ETF tracking the Akros U.S. AI Optical index, the AI-optical-networking theme.
- TIGER US AI Data Center TOP4 Plus ETF (0142D0) · Mirae Asset Global Investments Korea-listed ETF (December 9, 2025) tracking the Akros index behind this concept; total annual fee 0.49%.
- Akros U.S. AI Data Center TOP4 Plus Index (AUAIDC) · Akros Technologies, Inc. The proprietary Akros index that frames this concept and the benchmark the TIGER ETF tracks.
These references describe index-tracking relationships as a matter of fact and are not a recommendation to buy any product. Akros, as the index provider, may receive licensing fees from product sponsors. Review the product's prospectus before investing.
Frequently asked questions about Arista Networks
What does Arista Networks do?
Arista Networks designs high-performance data-center and AI Ethernet switches and routers built on its single EOS software platform. Its customers are cloud and AI hyperscalers, enterprises, and service providers, with product (hardware and software) making up most of revenue.
When does Arista report its next earnings?
Arista is expected to report Q2 2026 results around August 4, 2026. That date is analyst/calendar-estimated, so confirm it on Arista's investor-relations site. It last reported Q1 2026 on May 5, 2026.
What was Arista's latest quarterly revenue?
Arista reported revenue of $2.709 billion in Q1 2026 (the quarter ended March 31, 2026), up about 35% year over year, with non-GAAP EPS of $0.87, non-GAAP gross margin of 62.4%, and non-GAAP operating margin of 47.8%. Product was about 85% of revenue and services about 15%.
What is Arista's AI-networking revenue target?
On its Q1 2026 call, Arista raised its 2026 AI-networking revenue target to $3.5 billion, which CEO Jayshree Ullal said would more than double its AI sales for the year. AI networking is the back-end Ethernet fabric Arista sells into hyperscaler GPU clusters.
What is Arista's full-year 2026 guidance?
Arista raised its full-year 2026 outlook to about $11.5 billion in revenue, which the CFO framed as 27.7% growth, and guided Q2 2026 revenue to roughly $2.8 billion with non-GAAP operating margin of 46–47%.
Why is Arista an AI optical networking play?
Arista builds the 400G and 800G Ethernet switching fabric that wires AI clusters together; its 7800R4 platform supports up to 576 ports of 800GbE. Every switch port it ships terminates an optical transceiver, so its port and bandwidth growth pulls through demand across the optical-networking supply chain.
Who are Arista's biggest customers and competitors?
Per its fiscal 2025 Form 10-K, Arista's two largest customers accounted for 26% and 16% of 2025 revenue. It competes in switching markets historically dominated by Cisco, alongside Dell/EMC, Extreme Networks, Hewlett Packard Enterprise, Huawei, Juniper Networks, Nvidia, and white-box vendors running open-source operating systems.
Why is Arista part of the US AI data center concept?
Because the network is what turns racks of GPUs into one computer, and Arista's 800G Ethernet switches form that back-end fabric. Its 2026 AI-networking revenue target of $3.5 billion, more than double the prior year (Arista Q1 2026 call), makes it the networking layer of the US AI Data Center basket, alongside the neoclouds and operators whose clusters it wires.
Sources & references
- Arista Networks reports fourth quarter and year end 2025 financial results · Arista Networks, 2026-02-12
- Arista Networks Form 10-K for fiscal year 2025 (SEC EDGAR) · Arista Networks / SEC EDGAR, 2026-02-17
- Arista Networks reports first quarter 2026 financial results · Arista Networks, 2026-05-05
- Arista (ANET) Q1 2026 earnings call transcript · The Motley Fool, 2026-05-05
- Arista unveils 800G platforms to power AI data-center interconnects · SDxCentral, 2025-10-29
- Arista Networks · investor relations and events · Arista Networks, 2026-06-02
- NYSE listed company information · ANET · New York Stock Exchange, 2026-06-02