October 12, 2026·71 min read

Arista Networks, Inc. (ANET), Financial Analysis

Insights derived from analysing SEC filings. Independent analysis, not a publication of the SEC.

Figures are read from the Forms 10-K for FY2021 to FY2025, the Forms 10-Q for Q1 2017, Q3 2019 and Q1 2024 to Q2 2026, the Forms 8-K of February 2022 to August 2026 with their quarterly earnings exhibits 99.1 and employment exhibits 10.1 and 10.2, the proxy statements of April 2025 and April 2026, the Form S-1 of March 2014 and its exhibits 10.6 and 10.8, Schedules 13G, Forms 13F and Forms 4 and 144 on the record for central index key 1596532, together with the comparable filings of seven peers and five hyperscalers. Accession numbers for every filing used appear in the Sources appendix. Market prices are closing prices of 9 October 2026.

Arista (ANET) closed at $216.74 on 9 October 2026, 68.4x diluted GAAP EPS of $3.17 for the trailing twelve months (TTM), against a peer median price to earnings (P / E) multiple of 37.9x. Q2 2026 revenue rose 37.7% to $3.04bn, deferred revenue rose 69.0% to $6.87bn, and two customers supplied 42% of FY2025 revenue.

Key findings

Q2 2026 revenue was $3.04bn, up 37.7% year on year, with GAAP operating margin of 45.4% (44.7% a year earlier) and GAAP gross margin of 62.9% (65.2%).
Deferred revenue was $6.87bn at 30 June 2026, up 69.0% in twelve months; remaining performance obligations (RPO) were $8.4bn and non cancellable purchase commitments were $9.7bn against $3.6bn.
Cash and marketable securities were $13.34bn with borrowings of $0; TTM free cash flow (FCF, operating cash flow less capital expenditure) was $5.16bn, 48.9% of revenue, and H1 2026 share repurchases were $0.
Earnings call, 4 August 2026: management stated an FY2026 revenue target of about $12.6bn and an AI networking revenue target of at least $3.5bn; Q3 2026 revenue guidance in the 8-K is about $3.3bn.
At $216.74 shares trade at 24.7x enterprise value (EV) to TTM sales, 68.4x P / E and 53.0x P / FCF, against medians of 10.7x, 37.9x and 43.8x for seven peers.
Bechtolsheim Family Trust and Andreas Bechtolsheim beneficially owned 183.8m shares (14.6%) at 2 April 2026; on 29 May 2026 the advisory pay vote received 60.4% of votes cast and director Mark B. Templeton received 63.3%.
Forms 4 report open market sales of 8.11m shares for $1.48bn and open market purchases of 0 in the twelve months to 10 October 2026.
Three sets of stated assumptions for FY2027 to FY2029 give arithmetic outcomes of $119, $286 and $497 per share at end FY2029.

Table 0.1 Arista Networks at a glance

Measure	Value	Basis
Share price	$216.74	Close, 9 October 2026
Market cap	$273.36bn	1.26bn shares, 10-Q cover, 30 July 2026
Net cash	$13.34bn	Cash and marketable securities, 30 June 2026; borrowings $0
EV	$260.01bn	Market cap less net cash
TTM revenue	$10.54bn	Q3 2025 to Q2 2026
TTM revenue growth	32.6%	Against the prior four quarters
Operating margin, Q2 2026	45.4% GAAP; 49.9% non GAAP	Non GAAP excludes stock based compensation and intangible amortisation
TTM FCF margin	48.9%	FCF of $5.16bn
RPO	$8.4bn	30 June 2026; 91% due within two years
EV / sales	24.7x	TTM revenue
P / E	68.4x	TTM diluted GAAP EPS of $3.17
P / FCF	53.0x	Market cap over TTM FCF
Diluted shares	1.28bn	Q2 2026 weighted average

Source: 10-Q Q2 2026, 8-K Exhibit 99.1 of 4 August 2026, SEC filings via SEC-API.io; Market data, 9 October 2026. TTM = last four reported quarters

1 Revenue & Business Model

Arista revenue was $3.04bn in Q2 2026, up 37.7% year on year, with product at 85.8% of revenue and Americas at 77.0% (Q2 2026 10-Q). TTM revenue was $10.54bn.

Arista business model and revenue model

Arista sells Ethernet switches and routers that run its Extensible Operating System (EOS), plus post contract support (PCS) sold with hardware and renewed afterwards. Hardware revenue is generally recognised at shipment; contracts for new products with acceptance terms are deferred until customer acceptance.

Table 1.1 Arista business model as filed

Element	Filed fact
Segments	1 reportable segment
Product revenue	Switching and routing platforms with EOS software and network applications; 84.1% of FY2025 revenue
Service revenue	PCS contracts of 1 to 3 years and their renewals; 15.9% of FY2025 revenue
Product categories, FY2025	Core (AI, cloud and data centre) about 65%; Cognitive Adjacencies (campus and routing) about 18%; Software and Services about 17%
Sales channels	Direct sales force plus distributors, resellers, systems integrators and original equipment manufacturer partners; payment terms of 30 to 90 days
Manufacturing	Contract manufacturers Jabil, Sanmina and Foxconn build in Malaysia, Vietnam, Mexico and other countries; 4 direct fulfilment facilities
Key supplier	Broadcom is the predominant merchant silicon vendor for switching chips; some components are sole source
Acquisition	VeloCloud software defined wide area network business bought from Broadcom on 30 June 2025 for $300m in cash
Employees	About 5,115 full time employees at 31 December 2025
Share basis	1.26bn shares outstanding at 30 July 2026, after the 4 for 1 split effective 3 December 2024

Source: FY2025 10-K, Items 1 and 7, Note 1; Q2 2026 10-Q, cover, Notes 4 and 9; 8-K of 3 December 2024, Item 5.03

Arista product, service and geographic revenue

Figure 1.1 Arista revenue by type and service share, FY2021 to FY2025

Product revenue grew 37.7% in H1 2026 and service revenue 29.4%. United States revenue was $4.59bn in H1 2026, 79.9% of total. FY2025 10-K attributes the move in revenue outside Americas from 18.2% in FY2024 to 20.9% in FY2025 to geographic mix of sales to large global customers.

Table 1.2 Arista revenue by type, FY2021 to H1 2026

$bn	FY2021	FY2022	FY2023	FY2024	FY2025	H1 2025	H1 2026
Product	2.38	3.72	5.03	5.88	7.58	3.57	4.92
Service	0.57	0.67	0.83	1.12	1.43	0.64	0.83
Total revenue	2.95	4.38	5.86	7.00	9.01	4.21	5.74
Product share	80.7%	84.8%	85.8%	84.0%	84.1%	84.8%	85.6%
Service share	19.3%	15.2%	14.2%	16.0%	15.9%	15.2%	14.4%
Product growth	29.9%	56.3%	35.3%	17.0%	28.8%	n/a	37.7%
Service growth	17.2%	16.6%	24.9%	34.7%	27.7%	n/a	29.4%
Total growth	27.2%	48.6%	33.8%	19.5%	28.6%	n/a	36.5%

Source: FY2025 10-K, FY2024 10-K, FY2023 10-K, FY2022 10-K, Q2 2026 10-Q; shares and growth are derived

Figure 1.2 Arista revenue share by region, FY2021 to H1 2026

Table 1.3 Arista quarterly revenue by region, Q1 2025 to Q2 2026

$bn	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026
Total revenue	2.00	2.20	2.31	2.49	2.71	3.04
Americas	1.60	1.72	1.84	1.96	2.29	2.34
EMEA	0.17	0.28	0.24	0.38	0.24	0.44
Asia Pacific	0.23	0.20	0.23	0.15	0.18	0.26
Americas share	79.7%	78.2%	79.7%	78.8%	84.5%	77.0%

Source: Q1 2025 10-Q, Q2 2025 10-Q, Q3 2025 10-Q, FY2025 10-K, Q1 2026 10-Q, Q2 2026 10-Q; Q4 equals full year less nine months; EMEA = Europe, Middle East and Africa

Table 1.4 Arista revenue by geography, FY2021 to H1 2026

$bn	FY2021	FY2022	FY2023	FY2024	FY2025	H1 2025	H1 2026
Americas	2.16	3.46	4.65	5.73	7.12	3.32	4.63
of which United States	2.13	3.42	4.54	5.66	7.06	3.29	4.59
EMEA	0.49	0.53	0.67	0.71	1.07	0.46	0.67
Asia Pacific	0.31	0.39	0.54	0.56	0.81	0.43	0.44
Americas share	73.2%	79.0%	79.3%	81.8%	79.1%	79.0%	80.6%
EMEA share	16.5%	12.1%	11.5%	10.2%	11.9%	10.8%	11.7%
Asia Pacific share	10.3%	8.9%	9.2%	8.0%	9.0%	10.2%	7.7%

Source: FY2025 10-K, FY2024 10-K, FY2023 10-K, FY2022 10-K, Q2 2026 10-Q; revenue by customer shipping address

Arista customer concentration

Figure 1.3 Arista customers above 10% of revenue, FY2020 to FY2025

Two end customers supplied 26% and 16% of FY2025 revenue, 42% combined against 35% in FY2024; the FY2025 10-K reports both as unnamed end customers. FY2024 10-K named Microsoft (20% of FY2024 revenue) and Meta Platforms (15%).

Table 1.5 Arista customers above 10% of total revenue

% of total revenue	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Customer A	22%	15%	16%	18%	20%	26%
Customer B	below 10%	below 10%	26%	21%	15%	16%
Customers above 10%, combined	22%	15%	42%	39%	35%	42%
Top two resellers, share of receivables	n/a	n/a	n/a	n/a	50%	52%

Source: FY2022 10-K, Item 7, FY2024 10-K, Item 7, FY2025 10-K, Item 7 and Note 1; customers are named in 10-K filings through FY2024 and unnamed in the FY2025 10-K

Table 1.6 Arista revenue share by customer sector and product category

Approximate % of revenue	FY2024	FY2025
Cloud and AI Titans	48%	48%
Enterprise	35%	32%
Providers (FY2025 label: AI and Specialty Providers)	17%	20%
Core (AI, cloud and data centre networking)	65%	65%
Cognitive Adjacencies (campus and routing)	18%	18%
Software and Services	17%	17%

Source: FY2024 10-K, Item 7, FY2025 10-K, Item 7

Arista deferred revenue, RPO and purchase commitments

Figure 1.4 Arista deferred revenue, purchase commitments and quarterly revenue

Deferred revenue consists mainly of product deferrals under acceptance clauses and of PCS contracts. RPO adds unbilled obligations to deferred revenue. Purchase commitments of $9.7bn equal 92% of TTM revenue.

Table 1.7 Arista deferred revenue, RPO and purchase commitments

$bn	31 Dec 2023	31 Dec 2024	31 Mar 2025	30 Jun 2025	30 Sep 2025	31 Dec 2025	31 Mar 2026	30 Jun 2026
Deferred revenue	1.51	2.79	3.09	4.06	4.69	5.37	6.20	6.87
of which current	0.92	1.73	2.07	2.79	3.52	4.00	4.91	5.10
of which non current	0.59	1.06	1.02	1.27	1.17	1.37	1.29	1.77
Unbilled PCS and service contracts	0.34	0.39	0.36	0.39	0.38	0.28	0.26	0.43
Binding agreements for future product shipments	0.37	0.06	0.06	0.06	0.09	0.23	0.97	0.88
Total RPO	2.3	3.4	3.7	4.7	5.3	6.1	7.7	8.4
Purchase commitments	1.6	3.1	3.5	3.6	4.8	6.8	8.9	9.7
of which receipt within 12 months	1.5	2.8	3.0	3.1	4.3	6.3	7.6	9.4
Deposits with contract manufacturers	0.13	0.10	0.08	0.07	0.05	0.05	0.10	0.12

Source: FY2023 10-K, FY2024 10-K, Q1 2025 10-Q, Q2 2025 10-Q, Q3 2025 10-Q, FY2025 10-K, Q1 2026 10-Q, Q2 2026 10-Q; purchase commitments are non cancellable and sit off balance sheet

2 Financial Analysis & Ratios

Q2 2026 operating margin was 45.4% against 44.7% a year earlier on revenue up 37.7%, and gross margin was 62.9% against 65.2% (10-Q Q2 2026). Its management discussion attributes lower gross margin to a larger proportion of sales to large end customers that receive higher discounts. Diluted EPS rose 35.7% to $0.95; effective tax rate was 19.4% against 17.7%, which the 10-Q attributes to lower tax benefits from equity based compensation.

Arista Q2 2026 results year on year

Table 2.1 What changed, Q2 2026 and H1 2026 against prior year

Metric	Q2 2026	Q2 2025	Change	H1 2026	H1 2025	Change
Revenue, $bn	3.04	2.20	37.7%	5.74	4.21	36.5%
Product revenue, $bn	2.61	1.88	38.8%	4.92	3.57	37.7%
Service revenue, $m	430	328	31.3%	828	640	29.4%
Gross profit, $bn	1.91	1.44	32.8%	3.59	2.71	32.1%
Operating expenses, $bn	0.53	0.45	17.7%	1.05	0.87	20.9%
Operating income, $bn	1.38	0.99	39.7%	2.54	1.84	37.4%
Non GAAP operating income, $bn	1.51	1.08	40.6%	2.81	2.03	38.1%
Net income, $bn	1.21	0.89	36.5%	2.24	1.70	31.3%
Diluted EPS, $	0.95	0.70	35.7%	1.75	1.34	30.6%
Non GAAP diluted EPS, $	1.02	0.73	39.7%	1.89	1.40	35.0%
Gross margin	62.9%	65.2%	(2.3) pts	62.4%	64.5%	(2.0) pts
Product gross margin	59.8%	62.3%	(2.5) pts	59.1%	61.3%	(2.2) pts
Service gross margin	81.9%	82.0%	(0.1) pts	82.1%	82.0%	0.1 pts
Operating margin	45.4%	44.7%	0.7 pts	44.1%	43.8%	0.3 pts
Non GAAP operating margin	49.9%	48.8%	1.0 pts	48.9%	48.3%	0.6 pts
Net margin	40.0%	40.3%	(0.4) pts	38.9%	40.4%	(1.5) pts
Effective tax rate	19.4%	17.7%	1.7 pts	19.5%	16.3%	3.1 pts
Operating cash flow, $bn	1.08	1.20	(9.8)%	2.78	1.84	50.7%
Free cash flow, $bn	1.05	1.18	(10.4)%	2.69	1.79	50.5%
Free cash flow margin	34.7%	53.3%	(18.6) pts	46.9%	42.5%	4.4 pts
Stock based compensation (SBC), $m	120	85	41.3%	241	178	35.4%
SBC as % of revenue	4.0%	3.9%	0.1 pts	4.2%	4.2%	0.0 pts
Share repurchases, $m	0	196	(100.0)%	0	983	(100.0)%
Diluted shares, bn	1.276	1.271	0.4%	1.275	1.275	0.0%

Source: 10-Q Q2 2026, 10-Q Q1 2026, 10-Q Q2 2025, 10-Q Q1 2025; 8-K Exhibit 99.1 of 4 August 2026; 8-K of 3 December 2024. Per share data and share counts reflect the 4 for 1 stock split effective 3 December 2024. Free cash flow is operating cash flow less purchases of property and equipment.

Figure 2.1 Quarterly revenue by product and service with operating margin, Q1 2024 to Q2 2026

Figure 2.2 Gross margin by product and service, Q1 2024 to Q2 2026

Purchase commitments (Table 1.7) equal 2.5 times TTM cost of revenue of $3.90bn.

Table 2.2 Balance sheet items at 30 June 2026 against prior periods

Item	30 Jun 2026	31 Dec 2025	30 Jun 2025	Change year on year
Cash and marketable securities, $bn	13.34	10.74	8.84	50.9%
Borrowings, $bn	0.00	0.00	0.00	n/a
Accounts receivable, $bn	2.27	1.89	1.62	39.6%
Inventory, $bn	2.54	2.25	2.06	23.1%
Raw materials, $m	860	611	601	43.0%
Finished goods, $bn	1.68	1.64	1.46	14.9%
Evaluation inventory at customers, $m	616	404	335	83.9%
Deferred cost of goods sold, $bn	1.62	1.20	n/a	n/a
Stockholders equity, $bn	14.80	12.37	10.90	35.7%
Current ratio	2.96x	3.05x	3.33x	n/a

Source: 10-Q Q2 2026, 10-Q Q2 2025, 10-K FY2025

Table 2.3 Quarterly financials, Q1 2025 to Q2 2026

Line	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026
Revenue, $bn	2.00	2.20	2.31	2.49	2.71	3.04
Revenue growth year on year	27.6%	30.4%	27.5%	28.9%	35.1%	37.7%
Product revenue, $bn	1.69	1.88	1.91	2.10	2.31	2.61
Service revenue, $m	312	328	397	392	398	430
Gross margin	63.7%	65.2%	64.6%	62.9%	61.9%	62.9%
Product gross margin	60.3%	62.3%	61.0%	59.3%	58.4%	59.8%
Service gross margin	82.1%	82.0%	81.7%	81.9%	82.3%	81.9%
Operating income, $bn	0.86	0.99	0.98	1.03	1.16	1.38
Operating margin	42.8%	44.7%	42.4%	41.5%	42.7%	45.4%
Non GAAP operating margin	47.8%	48.8%	48.6%	47.5%	47.8%	49.9%
Net income, $bn	0.81	0.89	0.85	0.96	1.02	1.21
Effective tax rate	14.8%	17.7%	20.8%	16.0%	19.5%	19.4%
Diluted EPS, $	0.64	0.70	0.67	0.75	0.80	0.95
Non GAAP diluted EPS, $	0.66	0.73	0.75	0.82	0.87	1.02
Operating cash flow, $bn	0.64	1.20	1.27	1.26	1.69	1.08
Capital expenditure, $m	28	24	30	37	54	30
Free cash flow, $bn	0.61	1.18	1.24	1.22	1.64	1.05
Stock based compensation, $m	93	85	128	133	121	120
Share repurchases, $m	787	196	0	620	0	0
Cash and marketable securities, $bn	8.15	8.84	10.11	10.74	12.35	13.34
Inventory, $bn	1.96	2.06	2.16	2.25	2.38	2.54
Evaluation inventory, $m	436	335	427	404	526	616
Deferred revenue growth year on year	85.7%	91.7%	86.9%	92.5%	100.7%	69.0%
Stockholders equity, $bn	10.12	10.90	11.91	12.37	13.49	14.80
Diluted shares, bn	1.279	1.271	1.277	1.276	1.274	1.276

Source: 10-Q Q1 2025, 10-Q Q2 2025, 10-Q Q3 2025, 10-K FY2025, 10-Q Q1 2026, 10-Q Q2 2026, 10-Q Q1 2024, 10-Q Q2 2024, 10-Q Q3 2024, 10-K FY2024; 8-K Exhibit 99.1 for Q3 2025, Q4 2025, Q1 2026, Q2 2026. Q4 2025 flows are full year less nine months; Q4 2025 EPS is from the earnings release. Non GAAP EPS for Q3 2025 is as published before the Q4 2025 change in method for non GAAP income taxes on stock based awards; other quarters are on the revised method.

Arista income statement, balance sheet and cash flow, five years

FY2025 revenue rose 28.6% to $9.01bn and effective tax rate was 17.4% against 12.6%, including a $22.6m net charge from the One Big Beautiful Bill Act (OBBB Act) (10-K FY2025, 8-K Exhibit 99.1 of 12 February 2026).

Table 2.4 Income statement, balance sheet and cash flow, FY2021 to FY2025

Line	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue, $bn	2.95	4.38	5.86	7.00	9.01
Gross profit, $bn	1.88	2.68	3.63	4.49	5.77
Research and development (R&D), $bn	0.59	0.73	0.85	1.00	1.24
Sales and marketing, $m	286	327	399	427	533
General and administrative, $m	83	93	119	123	142
Operating income, $bn	0.92	1.53	2.26	2.94	3.86
Interest income, $m	7	28	152	311	383
Income tax, $m	90	229	335	413	738
Net income, $bn	0.84	1.35	2.09	2.85	3.51
Diluted EPS, $	0.66	1.07	1.65	2.23	2.75
Operating cash flow, $bn	1.02	0.49	2.03	3.71	4.37
Capital expenditure, $m	65	45	34	32	120
Free cash flow, $bn	0.95	0.45	2.00	3.68	4.25
Stock based compensation, $m	187	231	297	355	439
Share repurchases, $bn	0.41	0.67	0.11	0.42	1.60
Cash and marketable securities, $bn	3.41	3.02	5.01	8.30	10.74
Borrowings, $bn	0.00	0.00	0.00	0.00	0.00
Accounts receivable, $bn	0.52	0.92	1.02	1.14	1.89
Inventory, $bn	0.65	1.29	1.95	1.83	2.25
Total assets, $bn	5.73	6.78	9.95	14.04	19.45
Deferred revenue, $bn	0.93	1.04	1.51	2.79	5.37
Total liabilities, $bn	1.76	1.89	2.73	4.05	7.08
Stockholders equity, $bn	3.98	4.89	7.22	9.99	12.37
Purchase commitments, $bn	2.5	3.7	1.6	3.1	6.8
RPO, $bn	1.2	2.2	2.3	3.4	6.1
Diluted shares, bn	1.277	1.266	1.269	1.281	1.276

Source: 10-K FY2021, 10-K FY2022, 10-K FY2023, 10-K FY2024, 10-K FY2025. Each year is taken from the 10-K for that year; EPS and share counts for FY2021 to FY2023 are restated for the 4 for 1 split. Purchase commitments are non cancellable commitments at year end.

Table 2.5 Ratios, FY2021 to FY2025 and TTM to Q2 2026

Ratio	FY2021	FY2022	FY2023	FY2024	FY2025	TTM Q2 2026
Revenue growth	27.2%	48.6%	33.8%	19.5%	28.6%	32.6%
Gross margin	63.8%	61.1%	61.9%	64.1%	64.1%	63.0%
Product gross margin	59.7%	57.7%	59.0%	60.9%	60.7%	59.6%
Service gross margin	80.9%	80.2%	79.7%	81.0%	81.9%	82.0%
Operating margin	31.4%	34.9%	38.5%	42.0%	42.8%	43.1%
Non GAAP operating margin	38.7%	41.0%	44.4%	47.5%	48.2%	48.5%
Net margin	28.5%	30.9%	35.6%	40.7%	39.0%	38.4%
Free cash flow margin	32.3%	10.2%	34.1%	52.5%	47.2%	48.9%
SBC as % of revenue	6.3%	5.3%	5.1%	5.1%	4.9%	4.8%
Research and development as % of revenue	19.9%	16.6%	14.6%	14.2%	13.7%	13.0%
Effective tax rate	9.7%	14.5%	13.8%	12.6%	17.4%	18.9%
ROE	23.0%	30.5%	34.5%	33.1%	31.4%	31.5%
ROIC	22.9%	29.5%	32.1%	29.9%	28.5%	28.7%
ROA	16.1%	21.6%	25.0%	23.8%	21.0%	20.1%
Current ratio	4.34x	4.29x	4.39x	4.36x	3.05x	2.96x
Debt to equity	0.00x	0.00x	0.00x	0.00x	0.00x	0.00x
Net cash, $bn	3.41	3.02	5.01	8.30	10.74	13.34
DSO, days	64	77	64	59	76	78
Inventory days	222	276	318	267	253	237
Inventory turns	1.89x	1.76x	1.38x	1.33x	1.59x	1.70x
Asset turnover	0.56x	0.70x	0.70x	0.58x	0.54x	0.52x
Capital expenditure as % of revenue	2.2%	1.0%	0.6%	0.5%	1.3%	1.4%
Diluted EPS, $	0.66	1.07	1.65	2.23	2.75	3.17
Non GAAP diluted EPS, $	0.72	1.15	1.73	2.32	2.98	3.46
Free cash flow per share, $	0.74	0.35	1.58	2.87	3.33	4.04
Share repurchases as % of free cash flow	43.3%	149.6%	5.6%	11.5%	37.7%	12.0%
Dividends, $bn	0.00	0.00	0.00	0.00	0.00	0.00
Deferred revenue growth	42.8%	12.0%	44.7%	85.3%	92.5%	69.0%
Deferred revenue as % of revenue	31.5%	23.8%	25.7%	39.9%	59.7%	65.1%

Source: 10-K FY2021, 10-K FY2022, 10-K FY2023, 10-K FY2024, 10-K FY2025, 10-Q Q2 2025, 10-Q Q2 2026; 8-K Exhibit 99.1 for FY2021, FY2022, FY2024, FY2025, Q3 2025, Q1 2026, Q2 2026. TTM = Q3 2025 to Q2 2026. ROE (return on equity) = net income over average equity. ROIC (return on invested capital) = operating income after tax at the effective rate over average equity plus debt; debt is $0. ROA (return on assets) = net income over average assets. DSO (days sales outstanding) = period end receivables over revenue times 365. Inventory days = period end inventory over cost of revenue times 365; turns use average inventory. Non GAAP EPS for FY2021 to FY2023 and Q3 2025 is on the method in use before Q4 2025.

H1 2026 share repurchases were $0 and $817.9m remains under the $1.5bn programme authorised in May 2025. FY2025 repurchases were $1.60bn, 37.7% of FCF, for 15.9m shares at an average $100.63.

Figure 2.3 Free cash flow, share repurchases and cash and marketable securities, FY2021 to TTM Q2 2026

Arista GAAP and non GAAP earnings

Non GAAP operating margin was 49.9% in Q2 2026 against 45.4% on a GAAP basis; the largest excluded items are stock based compensation and intangible amortisation.

Table 2.6 GAAP to non GAAP earnings, Q2 2026 against Q2 2025

Line	Q2 2026	Q2 2025
GAAP net income, $bn	1.21	0.89
Stock based compensation, $m	120.4	85.2
Intangible asset amortisation, $m	15.3	5.0
Gains on strategic investments, $m	(6.0)	(5.4)
Tax benefits on stock based awards, $m	(30.9)	(32.1)
Income tax effect on exclusions, $m	(10.0)	(7.3)
Non GAAP net income, $bn	1.30	0.93
GAAP diluted EPS, $	0.95	0.70
Non GAAP diluted EPS, $	1.02	0.73
GAAP gross margin	62.9%	65.2%
Non GAAP gross margin	63.4%	65.6%
GAAP operating margin	45.4%	44.7%
Non GAAP operating margin	49.9%	48.8%

Source: 8-K Exhibit 99.1 of 4 August 2026

Table 2.7 One off items disclosed, $m

Period	Item	Charge or (gain)
Q3 2025	Deferred tax charge on enactment of OBBB Act	34.6
Q4 2025	Tax benefit related to OBBB Act	(12.0)
FY2025	Gain on strategic investments	(13.4)
FY2024	Gain on strategic investments	(12.4)
FY2024	Contract manufacturer and supplier liability benefit	(74.3)
FY2023	Contract manufacturer and supplier liability charge	113.0
FY2023	Legal settlement	16.0
FY2023	Gain on strategic investments	(18.7)
FY2022	Unrealised gain on equity investments	(27.5)
FY2022	Acquisition related costs	4.7

Source: 8-K Exhibit 99.1 of 4 November 2025, 8-K Exhibit 99.1 of 12 February 2026, 8-K Exhibit 99.1 of 18 February 2025, 8-K Exhibit 99.1 of 13 February 2023, 10-K FY2025, 10-K FY2024. Q4 2025 release raised FY2024 non GAAP net income by $61.3m and non GAAP diluted EPS by $0.05 to $2.32 through the change in method. FY2025 investing cash flow includes $300.0m paid for the VeloCloud business.

3 MD&A & Management Commentary

Arista's Q2 2026 revenue of $3.04bn was 8.4% above its guidance of about $2.8bn, and revenue exceeded guidance midpoint in each of the last six quarters, by 2.6% to 8.4%. Earnings call, 4 August 2026: management raised its FY2026 revenue target to about $12.6bn, about 40% growth. Guidance margins are non GAAP.

Arista guidance against actual results by quarter

Figure 3.1 Quarterly revenue guidance against actual, Q1 2025 to Q3 2026

Table 3.1 Guidance from each earnings release against the result reported one quarter later

Quarter	Guidance filed	Revenue guidance	Revenue actual	Actual over midpoint	Non GAAP gross margin guidance	Non GAAP gross margin actual	Non GAAP operating margin guidance	Non GAAP operating margin actual
Q3 2026	4 Aug 2026	about $3.3bn	n/a	n/a	63% (call)	n/a	48% to 49%	n/a
Q2 2026	5 May 2026	about $2.8bn	$3.036bn	8.4%	62% to 63% (call)	63.4%	46% to 47%	49.9%
Q1 2026	12 Feb 2026	about $2.6bn	$2.709bn	4.2%	62% to 63%	62.4%	46%	47.8%
Q4 2025	4 Nov 2025	$2.3bn to $2.4bn	$2.488bn	5.9%	62% to 63%	63.4%	47% to 48%	47.5%
Q3 2025	5 Aug 2025	about $2.25bn	$2.308bn	2.6%	64%	65.2%	47%	48.6%
Q2 2025	6 May 2025	about $2.10bn	$2.205bn	5.0%	63%	65.6%	46%	48.8%
Q1 2025	18 Feb 2025	$1.93bn to $1.97bn	$2.005bn	2.8%	63%	64.1%	44%	47.8%

Source: Exhibit 99.1 of 8-K 0001596532-26-000174, 8-K 0001596532-26-000074, 8-K 0001596532-26-000010, 8-K 0001596532-25-000284, 8-K 0001596532-25-000214, 8-K 0001596532-25-000103, 8-K 0001596532-25-000018, SEC filings via SEC-API.io. Rows marked (call): Earnings calls, 5 May 2026 and 4 August 2026.

Non GAAP diluted EPS was guided at about $0.88 for Q2 2026 against $1.02 reported, and at $1.06 to $1.08 for Q3 2026.

Figure 3.2 Margin guidance against actual, Q1 2025 to Q3 2026

Arista FY2026 revenue growth target and AI networking revenue target

Figure 3.3 FY2026 revenue and AI networking targets stated on each earnings call

Table 3.2 Annual targets stated by management, latest first

Call date	FY2026 revenue	Growth	2026 AI networking revenue	2026 campus revenue	Non GAAP gross margin	Non GAAP operating margin	Statement on the call
4 Aug 2026	about $12.60bn	about 40%	at least $3.50bn	$1.25bn	62% to 64%	48% to 49%	Management raised the revenue target for the third time in 2026.
5 May 2026	about $11.50bn	about 27.7%	$3.50bn	$1.25bn	62% to 64%	about 46%	Management raised revenue from $11.25bn and the AI target from $3.25bn and said demand exceeded supply for 2026.
12 Feb 2026	about $11.25bn	about 25%	$3.25bn	$1.25bn	62% to 64%	about 46%	Management raised the AI target from $2.75bn, said it includes front end revenue tied to back end clusters, and said the 2025 goals of $1.5bn AI and $800m campus were exceeded.
4 Nov 2025	about $10.65bn	about 20%	$2.75bn	$1.25bn	62% to 64%	43% to 45%	Management set about 20% growth for FY2026 on FY2025 guidance of $8.87bn and described the 2025 AI goal of at least $1.5bn as an aggregate of back end and front end.

Source: Earnings calls, 4 November 2025, 12 February 2026, 5 May 2026 and 4 August 2026. FY2025 revenue was $9.01bn (10-K 0001596532-26-000013).

Trends and risks management flags: AI demand, customer concentration, supply, tariffs

Management's discussion and analysis (MD&A) in the Q2 2026 10-Q states that "near term revenue trends may not be reflective of current demand levels". Two readings exist for revenue above guidance: guidance set below expected results, or the acceptance and supply timing that the 10-Q names as a source of quarterly variability.

Table 3.3 Trends named by management, with the filing or call and date

Trend	Statement	Where and when
AI demand	AI deployment by large customers has increased demand for networking and the long term trajectory is unknown. New AI Ethernet products bring more customer trials and contracts with acceptance periods, which raise the size and volatility of evaluation inventory and product deferred revenue.	10-Q Q2 2026 MD&A
AI demand	Management said demand exceeds supply for 2026, cited more than 100 cumulative customers for the Etherlink AI product line, and placed 1.6 terabit products in trials in H2 2026 and in production in 2027.	Earnings calls, 5 May 2026 and 4 August 2026
Customer concentration	Order timing from high volume customers is described as unpredictable, and their discounts lower gross margin. Management expected one or two additional 10% customers in 2026.	10-K FY2025 MD&A; Earnings call, 12 February 2026
Gross margin and pricing	GAAP gross margin of 62.9% in Q2 2026 against 65.2% is attributed to "an increased proportion of our sales to large end customers who generally receive higher discounts". Management held the FY2026 non GAAP gross margin outlook at 62% to 64%, including memory and silicon cost increases.	10-Q Q2 2026 MD&A; Earnings call, 4 August 2026
Supply and component lead times	Component constraints are named in memory and silicon markets; supply inflation and scarcity "have continued to put pressure on our gross margin". Purchase obligations were raised to respond to AI network deployment and tightening supply and to reduce lead times.	10-Q Q2 2026 MD&A and Note 5
Supply and component lead times	Management said memory supply is secured for 2026 with visibility into 2027, expected industry supply constraints to last about two years, into 2028, and said the forecast rests on about two quarters of demand visibility. On 12 February 2026 management said a price increase on memory intensive products was likely.	Earnings calls, 12 February 2026 and 4 August 2026
Tariffs and trade policy	Cost of product revenue includes freight and tariffs. Gross margin could be further affected if tariff or other trade measures escalate while costs stay with Arista. Macroeconomic factors listed include "the war in Iran" and tariff uncertainty.	10-Q Q2 2026 MD&A
Tariffs and trade policy	Management said the rise in non GAAP gross margin from 62.4% in Q1 2026 to 63.4% in Q2 2026 benefited from tariff refunds and customer mix.	Earnings call, 4 August 2026
Deferred revenue and acceptance timing	In Q2 2026 $1.04bn was recognised from the opening deferred revenue balance and $1.70bn was added.	10-Q Q2 2026 Note 3
Deferred revenue and acceptance timing	Management said acceptance for larger AI deployments typically takes 12 to 18 months and some take six months, that customer specific acceptance clauses are increasing, and that the company gives no guidance on deferred revenue. Product deferred revenue rose about $600m in Q2 2026.	Earnings calls, 12 February 2026 and 4 August 2026
Capital return	The 10-Q states a belief that no cash dividends will be paid in the foreseeable future.	10-Q Q2 2026 MD&A
Operating expenses	R&D expense rose 17.4% to $348.2m in Q2 2026, with $33.3m from personnel and $8.3m from new product introduction.	10-Q Q2 2026 MD&A

Source: 10-Q 0001596532-26-000175, 10-K 0001596532-26-000013, SEC filings via SEC-API.io. Call rows: Earnings calls on the dates shown.

Arista leadership changes in 8-K Item 5.02

Item 5.02 filings from 10 October 2025 to 10 October 2026: 0. Four Item 5.02 filings from March to September 2025 set the current executive structure.

Table 3.4 Item 5.02 filings in 2025

Filed	Items	What the filing says
8 Sep 2025	5.02, 5.03, 8.01, 9.01	Item 5.02: Kenneth Duda, a founder and Chief Technology Officer, appointed President and Chief Technology Officer (CTO) on 5 September 2025, with oversight of cloud and AI systems engineering and business development. Item 5.03: amended bylaws. Item 8.01: Tyson Lamoreaux appointed Senior Vice President of Cloud and AI Networking.
16 Jun 2025	5.02, 9.01	Todd Nightingale, formerly chief executive of Fastly, appointed President and Chief Operating Officer (COO), starting about 1 July 2025. Base salary $350,000, restricted stock units valued at $30.0m vesting over about four years, performance units valued at $2.0m. Exhibits 10.1 and 10.2: offer letter and severance agreement.
6 May 2025	2.02, 5.02, 8.01, 9.01	Item 5.02: General Counsel Marc Taxay resigned effective 7 May 2025. Item 8.01: Sean Christofferson promoted to General Counsel from 8 May 2025; board authorised a $1.5bn share repurchase programme on 2 May 2025.
17 Mar 2025	5.02, 8.01, 9.01	Board size increased to nine. Greg Lavender appointed an independent Class III director and Audit Committee member on 14 March 2025.

Source: 8-K 0001596532-25-000258, 8-K 0001596532-25-000170, 8-K 0001596532-25-000103, 8-K 0001596532-25-000077, SEC filings via SEC-API.io.

4 Sector & Competitor Analysis

Arista revenue grew 32.6% to $10.54bn in the TTM to 30 June 2026, equal to the 32.6% median of seven networking peers, at a 43.1% operating margin against a 16.5% median. Shares trade at 24.7x EV / sales against a 10.7x median (Market data, 9 October 2026).

AI data centre capital spending by hyperscalers

Five hyperscale buyers spent $586.4bn on property and equipment (capital expenditure, capex) in their latest twelve months and $464.6bn in their latest fiscal years, up 79.7%.

Figure 4.1 Capital expenditure of five hyperscale customers of the networking sector

Table 4.1 Purchases of property and equipment by five hyperscalers

Company	Latest fiscal year	Capex	Prior year	Growth	Latest year to date	Capex	Prior year period	Growth	Latest twelve months
Amazon	FY to 31 Dec 2025	$131.8bn	$83.0bn	58.8%	H1 2026	$98.4bn	$57.2bn	72.0%	$173.0bn to 30 Jun 2026
Alphabet	FY to 31 Dec 2025	$91.4bn	$52.5bn	74.1%	H1 2026	$80.6bn	$39.6bn	103.3%	$132.4bn to 30 Jun 2026
Microsoft	FY to 30 Jun 2026	$115.9bn	$64.6bn	79.6%	FY to 30 Jun 2026	$115.9bn	$64.6bn	79.6%	$115.9bn to 30 Jun 2026
Meta	FY to 31 Dec 2025	$69.7bn	$37.3bn	87.1%	H1 2026	$49.1bn	$29.5bn	66.6%	$89.3bn to 30 Jun 2026
Oracle	FY to 31 May 2026	$55.7bn	$21.2bn	162.4%	Q1 FY2027	$28.5bn	$8.5bn	235.2%	$75.7bn to 31 Aug 2026
Total		$464.6bn	$258.6bn	79.7%					$586.4bn

Source: Amazon 10-K 0001018724-26-000004, Amazon 10-Q 0001018724-26-000026, Alphabet 10-K 0001652044-26-000018, Alphabet 10-Q 0001652044-26-000071, Microsoft 10-K 0001193125-26-323660, Meta 10-K 0001628280-26-003942, Meta 10-Q 0001628280-26-050705, Oracle 10-K 0001193125-26-277521, Oracle 10-Q 0001193125-26-389274, SEC filings via SEC-API.io

Ethernet switching market size and Ethernet against InfiniBand

International Data Corporation (IDC) puts Q2 2026 Ethernet switch revenue at $18.9bn, up 43.4%. Arista's 10-K states that Ethernet competes with InfiniBand and NVLink in back end AI clusters.

Table 4.2 Named research on Ethernet switching and AI back end networks

Source	Date	Finding
IDC Ethernet switch market, Q2 2026	11 Sep 2026	Market $18.9bn, up 43.4% year on year; data centre $12.3bn, up 64.5%; campus and branch $6.6bn, up 15.7%
Same IDC release	11 Sep 2026	Data centre share: NVIDIA 20.4%, Arista 18.7%, Cisco 18.2%; 800 gigabit Ethernet at 41.2% of data centre revenue
Same IDC release	11 Sep 2026	Vendor revenue growth: NVIDIA 181.1%, Arista 37.6%, Cisco 36.2%, Huawei 28.6%, Hewlett Packard Enterprise (HPE) 1.6%
Dell'Oro AI back end networks forecast	28 Jul 2026	Cumulative AI back end switch spending approaches $1tn over 2026 to 2030; scale up networks pass half of the market by 2030
Dell'Oro Q1 2026 report, as reported by Light Reading	2 Jun 2026	Ethernet at about two thirds of data centre switch sales in AI clusters in Q1 2026; 800 gigabit Ethernet the majority of Ethernet shipments
Dell'Oro 2026 predictions	17 Dec 2025	Ethernet passed InfiniBand in AI back end networks in 2025; InfiniBand held nearly 80% about two years earlier

Source: IDC and Dell'Oro Group releases linked in the table

Arista versus Cisco, HPE, NVIDIA, Broadcom, Marvell, Celestica and Ciena

Peer set: Cisco, HPE (owner of Juniper) and NVIDIA, named as competitors in Arista's 10-K; Broadcom, its predominant merchant silicon vendor; Marvell, Celestica and Ciena, listed data centre suppliers. Arista's FCF margin of 48.9% is the highest of the eight.

Figure 4.2 Revenue growth and operating margin, latest twelve months

Table 4.3 Operating comparison, latest twelve months reported by each filer

Company	Period	Revenue	Growth	Gross margin	Operating margin	FCF margin	SBC % of revenue	R&D % of revenue	Inventory days	Pre tax return on capital	RPO
Arista Networks	TTM to 30 Jun 2026	$10.5bn	32.6%	63.0%	43.1%	48.9%	4.8%	13.0%	237	30.7%	$8.4bn
Cisco Systems	FY to 25 Jul 2026	$63.3bn	11.8%	64.5%	24.3%	20.2%	6.0%	15.1%	93	19.3%	$46.7bn
Hewlett Packard Enterprise	TTM to 31 Jul 2026	$41.9bn	26.6%	36.7%	6.2%	9.9%	1.9%	8.8%	163	5.6%	$10.9bn
NVIDIA	TTM to 26 Jul 2026	$303.0bn	83.4%	74.7%	65.2%	41.9%	2.4%	7.8%	150	75.3%	$3.2bn
Broadcom	TTM to 2 Aug 2026	$89.1bn	48.7%	68.8%	48.0%	44.2%	9.5%	13.3%	59	26.9%	$179.2bn
Marvell Technology	TTM to 1 Aug 2026	$9.5bn	30.6%	52.2%	16.5%	18.3%	8.8%	25.8%	110	6.6%	n/a
Celestica	TTM to 30 Jun 2026	$15.6bn	47.3%	12.0%	8.8%	3.3%	0.5%	1.0%	90	41.6%	n/a
Ciena	TTM to 1 Aug 2026	$6.0bn	32.6%	44.1%	12.3%	13.5%	3.5%	15.4%	95	11.8%	$2.5bn
Peer median			32.6%	52.2%	16.5%	18.3%	3.5%	13.3%	95	19.3%

Source: Arista Networks: 10-K 0001596532-26-000013, 10-Q 0001596532-26-000175, 10-Q 0001596532-25-000216; Cisco Systems: 10-K 0000858877-26-000132; Hewlett Packard Enterprise: 10-K 0001645590-25-000130, 10-Q 0001645590-26-000080, 10-Q 0001645590-25-000101; NVIDIA: 10-K 0001045810-26-000021, 10-Q 0001045810-26-000075, 10-Q 0001045810-25-000209; Broadcom: 10-K 0001730168-25-000121, 10-Q 0001730168-26-000080, 10-Q 0001730168-25-000098; Marvell Technology: 10-K 0001835632-26-000011, 10-Q 0001835632-26-000025, 10-Q 0001835632-25-000189; Celestica: 10-K 0001030894-26-000011, 10-Q 0001030894-26-000044, 10-Q 0001030894-25-000047; Ciena: 10-K 0001628280-25-056698, 10-Q 0001628280-26-060361, 10-Q 0000936395-25-000041; SEC filings via SEC-API.io

Figure 4.3 Arista against the range of seven peers, latest twelve months

Table 4.4 Networking revenue lines as filed

Company	Revenue line	Period	Revenue	Prior year	Growth
Arista	Total revenue	Q2 2026	$3.04bn	$2.20bn	37.7%
Cisco	Networking product revenue	FY to 25 Jul 2026	$34.7bn	$28.3bn	22.5%
HPE	Networking segment revenue	Q3 FY2026	$2.89bn	$1.65bn	74.9%
HPE	Data centre networking revenue	Q3 FY2026	$382m	$180m	112.2%
NVIDIA	Networking revenue	FY to 25 Jan 2026	$31.4bn	$13.0bn	141.5%
Broadcom	Semiconductor solutions segment revenue	Q3 FY2026	$20.8bn	$9.17bn	127.4%
Marvell	Data centre end market revenue	Q2 FY2027	$2.17bn	$1.49bn	45.7%
Celestica	Communications end market revenue	Q2 2026	$2.65bn	$1.64bn	61.7%
Ciena	Total revenue	Q3 FY2026	$1.67bn	$1.22bn	37.0%

Source: Arista 10-Q 0001596532-26-000175, Cisco 10-K 0000858877-26-000132, HPE 10-Q 0001645590-26-000080, NVIDIA 10-K 0001045810-26-000021, Broadcom 10-Q 0001730168-26-000080, Marvell 10-Q 0001835632-26-000025, Celestica 10-Q 0001030894-26-000044, Ciena 10-Q 0001628280-26-060361, SEC filings via SEC-API.io

Valuation multiples EV / sales, P / E and P / FCF

Arista trades at 68.4x TTM diluted GAAP EPS and 53.0x FCF; peer medians are 37.9x and 43.8x. P / E is share price over TTM diluted GAAP EPS throughout this report.

Figure 4.4 Valuation multiples at 9 October 2026 closing prices

Table 4.5 Valuation and capital structure at 9 October 2026 closing prices

Company	Price	Shares	Market cap	Net cash (debt)	EV	EV / sales	P / E	P / FCF
Arista Networks	$216.74	1.26bn	$273.4bn	$13.3bn	$260.0bn	24.7x	68.4x	53.0x
Cisco Systems	$118.39	3.94bn	$466.8bn	($13.6bn)	$480.4bn	7.6x	35.6x	36.6x
Hewlett Packard Enterprise	$73.46	1.33bn	$97.5bn	($14.0bn)	$111.5bn	2.7x	37.9x	23.5x
NVIDIA	$229.28	24.10bn	$5.53tn	$66.0bn	$5.46tn	18.0x	29.0x	43.5x
Broadcom	$361.54	4.77bn	$1.73tn	($35.4bn)	$1.76tn	19.8x	46.1x	43.8x
Marvell Technology	$275.28	877m	$241.4bn	($1.0bn)	$242.4bn	25.7x	91.2x	139.5x
Celestica	$362.16	115m	$41.6bn	($275m)	$41.9bn	2.7x	37.6x	80.3x
Ciena	$449.77	142m	$63.8bn	($386m)	$64.2bn	10.7x	100.6x	78.3x
Peer median						10.7x	37.9x	43.8x

Source: Market data, 9 October 2026, for prices; share counts and balance sheets from Arista 10-Q 0001596532-26-000175, Cisco 10-K 0000858877-26-000132, HPE 10-Q 0001645590-26-000080, NVIDIA 10-Q 0001045810-26-000075, Broadcom 10-Q 0001730168-26-000080, Marvell 10-Q 0001835632-26-000025, Celestica 10-Q 0001030894-26-000044, Ciena 10-Q 0001628280-26-060361, SEC filings via SEC-API.io

Table 4.6 Metric definitions and basis

Item	Definition or basis
TTM	Last four reported quarters: latest fiscal year plus current year to date less prior year to date; Cisco on its fiscal year to 25 July 2026
FCF	Operating cash flow less purchases of property and equipment
SBC	Expense from the cash flow statement
Gross margin	As filed; HPE derived as revenue less cost of products, cost of services and financing cost
Inventory days	Inventory at the latest balance sheet over TTM cost of revenue, times 365
Pre tax return on capital	TTM operating income over equity plus debt at the latest balance sheet; Arista on the after tax ROIC basis of Table 2.5 is 28.7%
RPO	Balance at the latest balance sheet as each filer reports it; Arista figure includes deferred revenue
Shares and market cap	Shares outstanding from the latest 10-Q or 10-K cover, times the closing price
EV	Market cap plus debt less cash and marketable securities; NVIDIA marketable securities include $42.8bn of equity securities
P / E	Closing price over TTM diluted GAAP EPS; Marvell EPS includes a $1.83bn gain on sale of a business in FY2026
P / FCF	Market cap over TTM FCF
Growth	Includes acquisitions; HPE consolidates Juniper from 2025

Source: definitions applied to the filings listed under Table 4.3

5 Material Events & Contracts

Non cancellable purchase commitments of $9.7bn at 30 June 2026, 2.7 times the $3.6bn of a year earlier, are the largest material cash requirement listed in 10-Q Q2 2026. Arista filed 5 current reports (Form 8-K) between 10 October 2025 and 10 October 2026: 4 carry quarterly results and 1 carries the annual meeting vote.

Figure 5.1 Arista material events by filing type, October 2025 to October 2026

Arista 8-K filings last twelve months

Table 5.1 Arista 8-K filings, 10 October 2025 to 10 October 2026, newest first

Filed	Items	Event summary	Accession number
4 Aug 2026	2.02, 9.01	Q2 2026 revenue $3.04bn, up 37.7% year on year and 12.1% on Q1; GAAP diluted EPS $0.95 and non GAAP $1.02; GAAP operating margin 45.4%; Q3 2026 guidance of about $3.3bn revenue, 48% to 49% non GAAP operating margin and $1.06 to $1.08 non GAAP diluted EPS.	0001596532-26-000174
2 Jun 2026	5.07	Annual meeting of 29 May 2026: three Class III directors elected with 63.3% (Mark B. Templeton), 78.3% (Lewis Chew) and 79.1% (Greg Lavender) of votes for and withheld; advisory pay vote 624.9m for and 410.2m against (60.4% for); Ernst & Young LLP ratified with 97.2%; 99.4m broker non votes.	0001596532-26-000118
5 May 2026	2.02, 9.01	Q1 2026 revenue $2.71bn, up 35.1% year on year; GAAP diluted EPS $0.80 and non GAAP $0.87; operating cash flow $1.69bn; Q2 2026 guidance of about $2.8bn revenue, 46% to 47% non GAAP operating margin and about $0.88 non GAAP diluted EPS.	0001596532-26-000074
12 Feb 2026	2.02, 9.01	Q4 2025 revenue $2.49bn, up 28.9% year on year, with GAAP gross margin 62.9% and GAAP diluted EPS $0.75; FY2025 revenue $9.01bn, up 28.6%, and GAAP net income $3.51bn or $2.75 per diluted share; Q1 2026 guidance of about $2.6bn revenue and about 46% non GAAP operating margin.	0001596532-26-000010
4 Nov 2025	2.02, 9.01	Q3 2025 revenue $2.31bn, up 27.5% year on year; GAAP gross margin 64.6%; GAAP net income $853.0m or $0.67 per diluted share; Q4 2025 guidance of $2.3bn to $2.4bn revenue and 47% to 48% non GAAP operating margin; release records the appointment of Kenneth Duda as President and Chief Technology Officer.	0001596532-25-000284

Source: Arista Forms 8-K with Exhibit 99.1, SEC filings via SEC-API.io

Form 8-K reports under Items 1.01, 2.01, 2.03 and 5.02 in the period: 0.

Arista purchase commitments, buyback and events in 10-K and 10-Q

Commitments rose in each of the last six quarters (Table 1.7). 10-Q links them to AI network deployment and tighter memory and silicon supply, and states a heightened risk of excess inventory and supplier liability charges. Repurchases were $0 in H1 2026 against $983.0m in H1 2025.

Figure 5.2 Share repurchases by quarter and authority remaining, $bn

Table 5.2 Events disclosed in periodic reports, newest first

Event date	Where disclosed	Event summary
30 Jun 2026	10-Q Q2 2026, Note 5	Santa Clara office, lab and data centre building: $110m to $135m of capital expenditure remaining through the end of FY2026; construction in process $213.5m ($107.9m at 31 December 2025).
30 Jun 2026	10-Q Q2 2026, Note 5 and Part II Item 1	Legal proceedings are described as ordinary course claims including intellectual property and patent disputes, with provisions for contingent losses reported as insignificant; named proceedings: 0.
2 and 9 Jun 2026	10-Q Q2 2026, Part II Item 5	Chief Financial Officer (CFO) Chantelle Breithaupt modified her Rule 10b5-1 trading plan, which runs to 31 December 2026; director Mark Templeton adopted a plan covering up to 50,000 shares to 30 June 2027.
13 Mar 2026	10-Q Q1 2026, Part II Item 5	President and Chief Technology Officer Kenneth Duda adopted a Rule 10b5-1 plan covering up to 520,000 shares held in family trusts, running to 21 June 2027.
31 Dec 2025	10-K FY2025, Note 5 and Item 2	Operating lease payments $90.5m, of which $22.1m falls due within 12 months; headquarters lease of about 180,000 square feet in Santa Clara expires in March 2027.
14 Nov to 11 Dec 2025	10-K FY2025, Item 9B	Rule 10b5-1 plans adopted by Chief Executive Officer (CEO) Jayshree Ullal (up to 5.73m shares plus shares earned from performance awards, to 20 February 2027), director Yvonne Wassenaar (5,576 shares) and the Chief Financial Officer.
Nov 2025	10-K FY2025, Item 5 and Note 6	4.8m shares repurchased at an average $127.84; FY2025 repurchases total 15.9m shares for $1.60bn at an average $100.63 (FY2024: $423.6m).
30 Jun 2025	10-K FY2025, Note 4; 10-Q Q2 2026, Note 4	VeloCloud business acquired from Broadcom for $300.0m in cash: $268.4m of intangible assets, $148.0m of goodwill and $116.4m of net tangible liabilities assumed; goodwill unchanged at $416.1m through 30 June 2026.

Source: Arista 10-K and 10-Q filings as linked, SEC filings via SEC-API.io

Arista material contracts

Exhibit index of 10-K FY2025 lists 18 Exhibit 10 entries, of which 17 are compensatory plans or agreements with officers; supply, customer, lease, acquisition and debt agreements in the index: 0.

Table 5.3 Material contracts: what each does, key terms and source

Contract and date	Counterparty	What it does and economics	Term, triggers and termination	Source filing
Purchase orders for finished goods and strategic components, balance at 30 June 2026	Contract manufacturers Jabil Inc., Sanmina Corporation and Foxconn Hon Hai, and component suppliers	Arista outsources most manufacturing; contract manufacturers buy components and assemble products, and Arista consigns integrated circuits to them. Open orders of $9.7bn are off balance sheet, with $124.4m of deposits securing them.	Orders are "considered enforceable and legally binding"; rescheduling needs the supplier's agreement. 10-K states that arrangements with contract manufacturers and suppliers typically impose purchase obligations up to the amounts in submitted purchase orders or forecasts.	10-Q Q2 2026, Note 5; 10-K FY2025, Item 1
Binding contractual agreements with customers, balance at 30 June 2026	Certain customers	Customer commitments primarily for future product shipments of $875.1m, against $56.4m at 30 June 2025; unbilled multi year support and service contracts add $427.8m.	Counted in the $8.4bn of revenue still to be recognised, 91% of it within two years.	10-Q Q2 2026, Note 3; 10-Q Q2 2025, Note 3
Stock repurchase programme, authorised 2 May 2025	Board of Directors	Authority to buy back up to $1.5bn of common stock from working capital in the open market, in private or block trades or under Rule 10b5-1 plans; $682.1m used in FY2025 (45.5%). It followed a $1.2bn programme of May 2024 completed in May 2025.	Expires when $1.5bn is bought or the board ends it; the programme "may be suspended or discontinued by the Company at any time without prior notice".	10-K FY2025, Item 5 and Note 6; 10-Q Q2 2026, Note 6
VeloCloud acquisition, completed 30 June 2025	Broadcom	Purchase of the VeloCloud wide area network business for $300.0m in cash.	Closed; purchase price allocation described as preliminary in the Q2 2026 10-Q. Exhibit 2 agreements in the 10-K exhibit index: 0.	10-K FY2025, Note 4; 10-Q Q2 2026, Note 4
Leases and property project	Landlords	Operating leases for offices, data centres and equipment with $90.5m of payments outstanding at 31 December 2025; owned Santa Clara site with $110m to $135m of construction spending remaining at 30 June 2026.	Headquarters lease expires March 2027; construction due to complete by the end of FY2026.	10-K FY2025, Item 2 and Note 5; 10-Q Q2 2026, Note 5
Letter Agreement, 12 June 2025 (Exhibit 10.16)	Todd Nightingale, President and COO from 1 July 2025	Offer letter: base salary $350,000, prorated 2025 bonus, restricted stock units valued at $30m vesting 25% after one year and 1/16 a quarter after that over about four years, and performance units valued at $2m earned over three six month periods to 31 January 2027.	Employment at will. Share count set on the lowest closing price in the 90 trading days before grant.	Exhibit 10.1 to 8-K 0001596532-25-000170
Severance Agreement, effective 1 July 2025 (Exhibit 10.17)	Todd Nightingale	On termination without cause or resignation for good reason: 12 months of base salary and the time based equity that would have vested in the following 12 months. Within 12 months after a change in control: 50% of then outstanding unvested equity awards, if greater.	Requires a release effective within 60 days. A salary cut counts as a material reduction above 15% in any one year. Payments are cut back where that leaves more after the Section 4999 excise tax.	Exhibit 10.2 to 8-K 0001596532-25-000170
Letter Agreement, 15 October 2023, and Severance Agreement (Exhibits 10.14 and 10.15)	Chantelle Breithaupt, CFO	Base salary $315,000, annual discretionary bonus, performance units valued at $2m over four one year periods and a $50,000 relocation bonus; the related 8-K adds restricted stock units valued at $10m. Severance of 12 months of salary plus 12 months of time based vesting, or 50% of unvested equity after a change in control if greater.	Employment at will; severance conditional on a release of claims.	Exhibit 10.14 and Exhibit 10.15 to 10-K FY2025; 8-K 0001596532-23-000324
Offer Letter, 1 August 2008 (Exhibit 10.7)	Jayshree Ullal, CEO and Chairperson	Appointment as President and CEO with a $100,000 sign on bonus, the right to buy 1,250,000 shares at $0.01 and an option over 2,000,000 shares at $0.01 vesting over four years (share counts as written in 2008).	Salary of $1 per year for the first two years of employment, then $300,000 per year. Employment at will under California law.	Exhibit 10.8 to S-1 0001193125-14-122171
Offer Letter, 17 October 2004 (Exhibit 10.6)	Kenneth Duda, President and CTO	Hiring as Vice President of Engineering at a $130,000 salary with an option over 800,000 shares vesting over four years (share count as written in 2004).	Employment at will. 8-K of 8 September 2025 reports 0 new agreements on his appointment as President.	Exhibit 10.6 to S-1 0001193125-14-122171; 8-K 0001596532-25-000258
Form of Severance Agreement, 2017 (Exhibit 10.12)	John McCool, executive officer	Same structure as the two agreements above: 12 months of base salary and 12 months of time based vesting on a qualifying termination, or 50% of unvested equity within 12 months after a change in control.	Conditional on a release of claims.	Exhibit 10.4 to 10-Q 0001596532-17-000088
Consulting Agreement, dated 6 May 2025 (Exhibit 10.18)	Marc Taxay, former employee	Services on request, capped at 5 hours per month; consideration is continued vesting of his equity awards through 20 May 2025, after which awards stay outstanding and stop vesting.	Either party may end it on 15 days' written notice; restricted stock units are forfeited on termination.	Exhibit 10.3 to 10-Q 0001596532-25-000216
2014 Equity Incentive Plan, restated 17 April 2024 (Exhibit 10.4)	Employees, directors and consultants	Governs options, restricted stock units and performance awards. Share pool of 52.8m plus up to 40.2m shares returned from earlier awards; 45.0m available at 31 December 2025, with 24.6m restricted stock units unvested at 30 June 2026.	Ten year term from board adoption; the former annual automatic increase was removed. Exchange programmes are prohibited. Awards left unassumed by a successor vest in full, performance awards at 100% of target. Annual award limit per outside director $1.5m, $3.0m in the first year.	Exhibit 10.4 to 10-K 0001596532-25-000028; 10-K FY2025, Note 6
2014 Employee Stock Purchase Plan (Exhibit 10.5)	Eligible employees	Purchase of shares through payroll deductions of up to 15% of pay at 85% of the lower of the price on the first day of a 24 month offering period or on the purchase date; 0.7m shares issued in FY2025 at an average $67.27.	Twenty year term. Reserve grows each 1 January by the least of 40m shares, 1% of shares outstanding or an amount the board sets; 104.1m shares available at 31 December 2025.	Exhibit 10.5 to 10-K 0001596532-25-000028; 10-K FY2025, Note 6
Form of Indemnification Agreement (Exhibit 10.1)	Each director and executive officer	Arista indemnifies the individual to the fullest extent permitted by applicable law against expenses, judgments, fines and approved settlements, and advances expenses within 30 days of a request.	Runs until the later of ten years after service ends or one year after any pending proceeding ends. Excludes amounts covered by insurance and Section 16(b) disgorgement.	Exhibit 10.1 to 10-Q 0001596532-19-000230
Amended and Restated Bylaws, 5 September 2025 (Exhibit 3.3)	Stockholders	Allows more than one person to hold the office of President and extends the exclusive forum clause to other Delaware state courts or the federal district court in Delaware where the Court of Chancery lacks jurisdiction.	Covers derivative actions, fiduciary duty claims and claims under Delaware corporate law or the charter and bylaws.	Exhibit 3.1 to 8-K 0001596532-25-000258

Source: exhibits and filings as linked in the last column, SEC filings via SEC-API.io

6 Ownership, Voting Power & Annual Meeting

Bechtolsheim Family Trust and Andreas Bechtolsheim beneficially owned 183.8m Arista shares, 14.6% of common stock, at 2 April 2026, and the 29 May 2026 advisory vote on executive pay received 60.4% of votes cast. Arista has one class of common stock with one vote per share. CEO Jayshree Ullal held 29.3m shares (2.3%), against 37.5m a year earlier.

Arista major shareholders and voting power

Table 6.1 Beneficial ownership and votes at 2 April 2026

Holder	Position as filed	Shares beneficially owned	% of class, as filed	Votes held at 2 April 2026	% of 1.26bn votes	Shares, 2 April 2025	Change
Bechtolsheim Family Trust and Andreas Bechtolsheim	5% stockholder; Andreas Bechtolsheim, trustee	183.8m	14.6%	183.6m	14.58%	183.8m	0
Vanguard Capital Management LLC	Schedule 13G filer, 31 March 2026	78.6m	6.25%	10.3m	0.82%	n/a	n/a
BlackRock, Inc.	5% stockholder (Schedule 13G/A of 29 Jan 2024)	73.7m	5.9%	66.1m	5.25%	73.7m	0
Jayshree Ullal	CEO and Chairperson	29.3m	2.3%	29.3m	2.32%	37.5m	(8.2m)
Kenneth Duda	President, CTO, director	3.5m	below 1%	3.2m	0.26%	4.3m	(780,971)
Charles Giancarlo	Director	217,304	below 1%	216,333	0.02%	359,420	(142,116)
Daniel Scheinman	Lead independent director	158,192	below 1%	157,221	0.01%	154,308	3,884
Mark B. Templeton	Director	133,072	below 1%	132,101	0.01%	129,188	3,884
Chantelle Breithaupt	CFO	81,890	below 1%	69,624	0.01%	41,949	39,941
Lewis Chew	Director	31,232	below 1%	30,261	0.00%	27,348	3,884
Yvonne Wassenaar	Director	12,150	below 1%	11,179	0.00%	14,948	(2,798)
Kelly Battles	Director	10,500	below 1%	9,529	0.00%	9,816	684
Todd Nightingale	President and COO	6,128	below 1%	6,128	0.00%	n/a	n/a
Greg Lavender	Director	4,069	below 1%	3,262	0.00%	839	3,230
All current executive officers and directors (11 persons)	Group total	33.5m	2.7%	33.1m	2.63%	42.5m	(9.1m)

Source: DEF 14A filed 16 April 2026; DEF 14A filed 16 April 2025; Schedule 13G filed 29 April 2026. Votes held = shares owned less options and restricted stock units vesting within 60 days; for BlackRock and Vanguard Capital Management, sole voting power as reported.

2025 proxy listed The Vanguard Group at 95.1m shares (7.57%); the 2026 proxy lists 2 holders above 5%.

Table 6.2 Share structure, board and pay facts from the 2026 proxy

Item	As filed
Classes of voting stock	1 (common stock), one vote per share, no cumulative voting
Shares outstanding	1.26bn at 2 April 2026 and at 30 July 2026 (10-Q cover)
Board of directors	9 members in 3 staggered classes, three year terms
Director election standard	Plurality of voting power present and entitled to vote
Chairperson	Jayshree Ullal, CEO since October 2008, Chairperson since December 2023
Lead independent director	Daniel Scheinman
Pledging and hedging of company stock	Prohibited for directors and executive officers under insider trading policy
CEO total compensation	2025 $2.87m; 2024 $8.95m; 2023 $15.56m
CEO stock awards, grant date fair value	2025 $2.26m; 2024 $6.86m; 2023 $15.05m
Median employee total compensation, 2025	$190,815
CEO pay ratio, 2025	15:1
Say on pay, % of votes cast in favour	2023 94%; 2024 93%; 2025 62%; 2026 60.4%

Source: DEF 14A filed 16 April 2026; 10-Q for Q2 2026; 8-K filed 2 June 2026 for the 2026 say on pay result.

Arista 13F institutional holders

Original Form 13F-HR filings reporting Arista common stock rose from 1,884 for 30 September 2025 to 2,266 for 30 June 2026, up 20.3%. FMR LLC reported 47.3m shares at 30 June 2026 against 32.0m at 30 September 2025; T. Rowe Price Associates reported 23.2m against 36.8m.

Figure 6.1 Form 13F-HR filings reporting Arista common stock, by quarter end

Table 6.3 Arista shares reported by 12 large Form 13F filers

Filer	Q3 2025	Q4 2025	Q1 2026	Q2 2026	Change Q3 2025 to Q2 2026	% of shares outstanding, Q2 2026
BlackRock, Inc.	89.3m	95.4m	n/a	91.4m	2.1m	7.25%
Vanguard Group Inc	100.0m	101.2m	0	0	(100.0m)	0.00%
Vanguard Capital Management LLC	n/a	n/a	68.3m	68.7m	n/a	5.45%
Vanguard Portfolio Management LLC	n/a	n/a	25.8m	25.8m	n/a	2.05%
State Street Corp	46.3m	47.0m	46.8m	48.2m	1.8m	3.82%
FMR LLC	32.0m	39.0m	52.3m	47.3m	15.3m	3.75%
Geode Capital Management	26.0m	26.4m	27.2m	27.5m	1.5m	2.18%
T. Rowe Price Associates	36.8m	37.2m	29.3m	23.2m	(13.6m)	1.84%
Morgan Stanley	18.6m	18.2m	18.5m	19.7m	1.1m	1.56%
Capital Research Global Investors	17.7m	15.3m	14.8m	13.2m	(4.6m)	1.04%
Ameriprise Financial	8.1m	9.8m	10.0m	12.8m	4.7m	1.01%
JPMorgan Chase & Co	19.1m	11.6m	10.5m	11.7m	(7.3m)	0.93%

Source: Form 13F filings for the four quarter ends, CUSIP 040413205; filing for 30 June 2026 linked per filer (for Vanguard Group Inc, Schedule 13G/A of 26 March 2026 reporting 0 shares): BlackRock, Inc.; Vanguard Group Inc; Vanguard Capital Management LLC; Vanguard Portfolio Management LLC; State Street Corp; FMR LLC; Geode Capital Management; T. Rowe Price Associates; Morgan Stanley; Capital Research Global Investors; Ameriprise Financial; JPMorgan Chase & Co. Shares outstanding 1.26bn from 10-Q cover, 30 July 2026.

Figure 6.2 Arista shares reported by 12 large Form 13F filers, four quarter ends

Arista Schedule 13D and 13G filings

Schedule 13G filings from 10 October 2024 to 10 October 2026: 4. Schedule 13D filings: 0.

Table 6.4 Schedule 13G filings on Arista Networks, October 2024 to October 2026

Filed	Event date	Filer	Form	Shares beneficially owned	% of class	Sole voting power	Shared voting power
29 Apr 2026	31 Mar 2026	Vanguard Capital Management LLC	SCHEDULE 13G	78.6m	6.25%	10.3m	0
26 Mar 2026	13 Mar 2026	The Vanguard Group	SCHEDULE 13G/A (No. 9)	0	0.00%	0	0
12 Nov 2024	30 Sep 2024	The Vanguard Group	SC 13G/A	23.8m (95.1m after December 2024 split)	7.56%	0	351,897
4 Nov 2024	30 Sep 2024	The Vanguard Group	SC 13G/A	23.8m (95.1m after December 2024 split)	7.56%	0	351,897

Source: Schedule 13G filings linked in the Form column. November 2024 filings state share counts before the December 2024 stock split; the 95.1m figure is from the 2025 proxy.

Arista 2026 annual meeting voting results

Holders of 1.14bn shares, 90.2% of shares entitled to vote, were represented on 29 May 2026. Mark B. Templeton received 63.3% of votes cast and 380.6m withheld. Stockholder proposals on the ballot: 0.

Table 6.5 Annual meeting results, 29 May 2026, with 30 May 2025 comparison

Item	For	Against or withheld	Abstained	Broker non votes	% of votes cast for
Item 1: elect Class III director Lewis Chew (term to 2029)	810.8m	225.1m	n/a	99.4m	78.3%
Item 1: elect Class III director Greg Lavender (term to 2029)	819.8m	216.1m	n/a	99.4m	79.1%
Item 1: elect Class III director Mark B. Templeton (term to 2029)	655.4m	380.6m	n/a	99.4m	63.3%
Item 2: advisory vote on executive compensation	624.9m	410.2m	0.86m	99.4m	60.4%
Item 3: ratify Ernst & Young LLP for fiscal 2026	1.10bn	31.4m	0.34m	0	97.2%
2025: elect Class II director Charles Giancarlo	656.1m	339.9m	n/a	116.3m	65.9%
2025: elect Class II director Daniel Scheinman	675.8m	320.3m	n/a	116.3m	67.8%
2025: elect Class II director Yvonne Wassenaar	744.2m	251.8m	n/a	116.3m	74.7%
2025: advisory vote on executive compensation	613.6m	374.5m	7.94m	116.3m	62.1%
2025: ratify Ernst & Young LLP	1.09bn	23.1m	0.53m	0	97.9%

Source: 8-K Item 5.07 filed 2 June 2026; 8-K Item 5.07 filed 3 June 2025. % of votes cast for = for divided by for plus against or withheld.

Figure 6.3 Votes at the 29 May 2026 annual meeting, with share of votes cast in favour

7 Insider Activity

Arista insiders sold 8.11m shares for $1.48bn in the open market over the twelve months to 10 October 2026, including 563,590 shares for $119.99m from 1 to 7 October 2026; open market purchases were 0. Forms 4 filed in the period: 124. Forms 3: 0. Forms 5: 0.

Insider buying and selling by month

Figure 7.1 Insider open market sales by month and seller, Oct 2025 to Oct 2026

April to October 2026 carries $1.42bn, 96% of twelve month sale value. Rule 10b5-1 box is checked on every Form 4 that reports a sale.

Table 7.1 Open market insider transactions by month of transaction

Month	Shares sold	Sales value	Average sale price	Sellers	Forms 4 with sales
Oct 2025	56,000	$7.99m	$142.75	1	1
Nov 2025	88,464	$11.50m	$130.03	4	4
Dec 2025	64,000	$7.92m	$123.77	2	2
Jan 2026	64,000	$8.26m	$129.10	2	2
Feb 2026	68,237	$9.68m	$141.81	4	4
Mar 2026	67,395	$9.00m	$133.50	3	3
Apr 2026	1,367,097	$227.75m	$166.60	5	9
May 2026	508,650	$77.87m	$153.09	7	8
Jun 2026	771,333	$125.71m	$162.98	3	5
Jul 2026	1,328,333	$234.22m	$176.32	4	7
Aug 2026	2,750,416	$553.97m	$201.41	5	11
Sep 2026	411,567	$82.85m	$201.30	5	5
Oct 2026 (1 to 7 Oct)	563,590	$119.99m	$212.90	3	4
Total	8,109,082	$1.48bn	$182.11	8	65

Source: 65 Forms 4 with code S lines, first 21 Oct 2025, latest 9 Oct 2026, SEC filings via SEC-API.io

Insider sales by person and largest transactions

Table 7.2 Open market sales (code S) by reporting person, Forms 4 filed 10 Oct 2025 to 10 Oct 2026

Insider	Role	Shares sold	Value	Share of value	Average price	Shares held after	Latest filing
Jayshree Ullal	CEO and Chairperson	4,112,464	$785.54m	53.2%	$191.01	25,200,349	9 Oct 2026
Andreas Bechtolsheim	10% owner	3,256,848	$579.35m	39.2%	$177.89	180,543,048	21 Sep 2026
Kenneth Duda	President and CTO, director	629,332	$94.59m	6.4%	$150.30	3,090,946	23 Sep 2026
Charles Giancarlo	Director	80,000	$12.05m	0.8%	$150.66	185,842	24 Aug 2026
Chantelle Breithaupt	Senior Vice President, CFO	13,174	$2.15m	0.1%	$162.86	68,697	8 Oct 2026
Mark Templeton	Director	10,000	$2.01m	0.1%	$200.76	123,610	5 Oct 2026
Yvonne Wassenaar	Director	5,576	$0.78m	0.1%	$139.56	10,322	24 Aug 2026
Kelly Battles	Director	1,688	$0.24m	0.0%	$144.75	10,194	25 Aug 2026
Daniel Scheinman	Director	0	0	0.0%	n/a	158,730	24 Aug 2026
Todd Nightingale	President and COO	0	0	0.0%	n/a	69,463	24 Aug 2026
Lewis Chew	Director	0	0	0.0%	n/a	31,770	24 Aug 2026
Greg Lavender	Director	0	0	0.0%	n/a	4,607	24 Aug 2026
Total		8,109,082	$1.48bn	100.0%	$182.11

Source: latest Form 4 of each person, linked in the table, SEC filings via SEC-API.io. Shares held after = direct and indirect holdings reported on that Form 4. Forms 4 name the reporting person Robert G. Lavender and the 2026 Forms 4 are signed for Greg Lavender, the name in the 2026 proxy

Jayshree Ullal and Andreas Bechtolsheim account for 92% of sale value. Shares sold equal 0.64% of 1.26bn shares outstanding; Bechtolsheim's 180.54m shares equal 14.3% and Ullal's 25.20m equal 2.0%.

Figure 7.2 Shares held after each Form 4, three largest sellers

Table 7.3 Ten largest open market transactions by value, one row per insider and transaction date

Date	Insider	Role	Code	Shares	Average price	Value	Shares held after	Filing
5 Aug 2026	Jayshree Ullal	CEO and Chairperson	S	1,099,495	$201.22	$221.24m	26,393,846	Form 4, 2, 3
12 Aug 2026	Jayshree Ullal	CEO and Chairperson	S	573,509	$208.13	$119.36m	25,820,337	Form 4
6 Oct 2026	Jayshree Ullal	CEO and Chairperson	S	460,374	$212.09	$97.64m	25,297,341	Form 4
6 Aug 2026	Andreas Bechtolsheim	10% owner	S	411,848	$192.75	$79.38m	181,143,048	Form 4
22 Apr 2026	Jayshree Ullal	CEO and Chairperson	S	428,000	$177.44	$75.94m	27,970,341	Form 4
5 Aug 2026	Andreas Bechtolsheim	10% owner	S	300,000	$203.30	$60.99m	181,554,896	Form 4
27 Aug 2026	Andreas Bechtolsheim	10% owner	S	300,000	$202.60	$60.78m	180,843,048	Form 4
17 Sep 2026	Andreas Bechtolsheim	10% owner	S	300,000	$198.95	$59.69m	180,543,048	Form 4
16 Apr 2026	Jayshree Ullal	CEO and Chairperson	S	350,000	$159.32	$55.76m	28,798,341	Form 4
14 Jul 2026	Andreas Bechtolsheim	10% owner	S	300,000	$180.77	$54.23m	181,854,896	Form 4

Source: Forms 4 linked in the table, SEC filings via SEC-API.io. Shares held after = direct and indirect holdings

Stock awards, option exercises and tax withholding

Figure 7.3 Shares reported on Forms 4 by transaction type, Oct 2025 to Oct 2026

Table 7.4 Award, exercise, withholding, gift and transfer lines on Forms 4

Transaction type	Code	Lines	Shares or units	Value	Insiders
Restricted stock units (RSUs) settled in shares	M	73	777,681	n/a	11
Stock options exercised, value at exercise price	M	15	475,332	$5.71m	2
Shares withheld by issuer for tax on vesting	F	14	372,968	$55.62m	4
RSU awards and performance award certifications, officers	A	9	189,594	n/a	4
RSU awards to directors, 29 May 2026	A	7	15,071	n/a	7
Gift of shares held by trust, 14 Nov 2025	G	1	935,000	n/a	1
Transfers between trusts of one reporting person, shares moved in	J	31	1,241,345	n/a	1

Source: Forms 4 including gift, filed 18 Nov 2025, latest trust transfer, filed 14 Sep 2026 and latest tax withholding, filed 24 Aug 2026, SEC filings via SEC-API.io

Shares sold in the open market are 21.7 times shares withheld for tax. Code J lines move shares between Kenneth Duda's family trust, annuity trusts and children's trusts.

Form 144 notices of proposed sale

Table 7.5 Forms 144 filed 10 Oct 2025 to 10 Oct 2026, amendments excluded

Person	Notices	Shares to be sold	Aggregate market value	Latest notice
Jayshree Ullal	17	4,271,007	$814.02m	9 Oct 2026
Andreas Bechtolsheim	12	3,256,848	$579.16m	17 Sep 2026
Kenneth Duda	12	517,332	$75.26m	22 Jun 2026
Charles Giancarlo	3	64,000	$9.83m	3 Aug 2026
Mark Templeton	1	20,000	$3.88m	8 Sep 2026
Chantelle Breithaupt	4	13,174	$2.10m	6 Oct 2026
Yvonne Wassenaar	2	5,576	$0.75m	20 May 2026
Kelly Battles	3	1,266	$0.17m	21 Aug 2026
Total	54	8,149,203	$1.49bn

Source: Forms 144 linked in the table, SEC filings via SEC-API.io

Four Forms 144/A filed on 12 June 2026 amend Bechtolsheim notices covering 885,000 shares. Latest Forms 3: Todd Nightingale, 11 Jul 2025, Greg Lavender, 18 Mar 2025.

8 Risk Factors

Arista's 10-Q Q2 2026 carries 57 risk factors in 27,512 words, 23 of them edited since the 10-K FY2025. Against the 10-K FY2024, the FY2025 10-K cut the count from 58 to 57, moved sole source components to first position ahead of customer concentration, gave tariffs a standalone factor in third position and removed customer names.

Arista risk factors by category

Table 8.1 Risk factor count and word count by category as filed

Category	Count FY2024	Count FY2025	Count Q2 2026	Words FY2024	Words FY2025	Words Q2 2026	Change FY2025	Change Q2 2026
Business and industry	15	16	16	8,916	9,100	9,217	184	117
Customers and sales	12	11	11	3,406	3,208	3,236	(198)	28
Products and services	3	3	3	1,225	1,214	1,208	(11)	(6)
Supply chain and manufacturing	4	4	4	2,079	1,957	1,991	(122)	34
Intellectual property	5	5	5	2,575	2,567	2,529	(8)	(38)
Litigation	1	0	0	443	0	0	(443)	0
Cybersecurity and data privacy	2	2	2	1,737	1,426	1,491	(311)	65
Accounting, compliance, regulation and tax	8	7	7	6,035	4,927	5,013	(1,108)	86
Ownership of common stock	5	5	5	1,832	1,831	1,863	(1)	32
General	3	4	4	745	963	964	218	1
Total	58	57	57	28,993	27,193	27,512	(1,800)	319

Source: 10-K FY2024, 10-K FY2025, 10-Q Q2 2026. Word counts cover risk headings and body text under Item 1A; the Litigation category held one factor in FY2024, moved to General in FY2025.

Figure 8.1 Risk factor word count by category, last three filings

Arista risk factor changes FY2025 against FY2024

Of 57 FY2025 factors, 3 carry new headings from the split of one FY2024 factor, 19 are reworded, 13 carry minor edits and 22 are unchanged. FY2024 10-K listed 4 primary contract manufacturing partners; FY2025 lists 3.

Figure 8.2 Status of FY2025 risk factors against FY2024 by category

Table 8.2 Item 1A risk factors changed in the FY2025 10-K against the FY2024 10-K

Category	Risk factor	Words FY2025	Change in words	Status	What changed
Business and industry	Sole source components	454	(20)	Minor edits	List of component types removed; Broadcom stays named as the predominant merchant silicon vendor for switching chips.
Business and industry	Customer concentration	849	(381)	Reworded	Customer names removed (see Table 1.5); FY2025 reports two unnamed end customers at 26% and 16% of 2025 revenue and absorbs the text on favourable terms for large customers.
Business and industry	Tariffs	669	n/a	New heading (split)	Carved out of the former combined trade factor and placed third in the section; cites Section 301, International Emergency Economic Powers Act and Section 232 tariffs and adds Taiwan, Thailand and the Philippines as sourcing countries.
Business and industry	Economic conditions	680	(77)	Reworded	Named conflicts and the new presidential administration replaced by "changes in government administration and policy positions"; changes in tariff policies added.
Business and industry	Purchase commitments and supply shortages	491	(30)	Reworded	Adds "we see tightening supply conditions in the memory market" and names memory as an example of supplier price increases.
Business and industry	Revenue growth volatility	650	134	Reworded	Growth rates updated to 28.6% for 2025 after 19.5% for 2024; customer trials, acceptance provisions and product deferred revenue added as sources of revenue variability.
Business and industry	Gross margin variability	438	13	Minor edits	Tightening supply in the memory market added as an example of cost inflation.
Business and industry	Quarterly results variability	811	(199)	Reworded	Factor list shortened by 199 words; tariff policies and construction cost of a new Santa Clara building added; bullets on litigation cost, tax rate and currency removed.
Business and industry	Networking market evolution	496	(17)	Minor edits	Text now reads "generative and agentic AI models"; demand at risk described as AI infrastructure, previously AI Ethernet switches.
Business and industry	New products and adjacent markets	768	65	Reworded	Adds that AI Ethernet markets may see "prolonged slowdowns, cyclical contractions, or the correction of speculative bubbles".
Business and industry	Competition	1,008	7	Minor edits	AI added to the list of competitive markets; Juniper Networks removed from named competitors after its acquisition by Hewlett Packard Enterprise; Nvidia investment in "several AI Neoclouds" added.
Business and industry	International operations	551	34	Reworded	Trade bullets consolidated; new paragraph on laws, executive orders and enforcement priorities that raise cost and limit supply chain options.
Business and industry	Acquisitions and investments	594	(26)	Minor edits	Acquisition example updated from Untangle and Pluribus in 2022 to VeloCloud in June 2025.
Business and industry	Industry cyclicality	189	16	Reworded	Seasonality removed from the heading; text on lower sequential growth in Q1 deleted; demand cycles of the largest customers added.
Business and industry	Currency exchange rates	167	(2)	Minor edits	Effect of a stronger US dollar on customer cost restated from an observed effect to a possible one.
Customers and sales	New large customers	332	18	Reworded	Adds the risk that updates to sales structure, systems, procedures and policies fail to perform as expected.
Customers and sales	Sales cycles	498	(28)	Minor edits	Acceptance terms folded into the list of customer specific timing factors.
Customers and sales	Large customer terms	0	(151)	Dropped	Heading removed; the list of favourable terms (pricing discounts, bundled upgrades, extended warranties) moved into the customer concentration factor.
Supply chain and manufacturing	Component supply and inventory	761	(103)	Reworded	References to the Israel and Red Sea conflicts removed; trade tensions with Malaysia and Vietnam added; possible higher purchase commitments for memory added.
Supply chain and manufacturing	Contract manufacturers	821	(69)	Minor edits	Examples on pandemic closures and on a competitor absorbing manufacturer capacity removed; supply now fulfilled on forecasts and purchase orders.
Supply chain and manufacturing	Inventory forecasts	240	50	Reworded	Adds higher purchase commitments "to respond to the rapid deployment of AI networks", which raise working capital requirements.
Intellectual property	Infringement claims	1,025	(58)	Minor edits	References to past litigation with Cisco and OptumSoft and to the pending WSOU case removed.
Intellectual property	Open source software	401	50	Minor edits	Sentence added on open source licence terms that US courts have yet to interpret.
Cybersecurity and data privacy	Product security vulnerabilities	358	7	Reworded	Heading rewritten around cybersecurity incidents; adds attacks that damage or exfiltrate company or customer data.
Cybersecurity and data privacy	Cybersecurity incidents	1,068	(318)	Reworded	Rewritten around incidents at third parties and shortened by 318 words; adds remote work and incidents left undetected "for extended periods of time".
Accounting, compliance, regulation and tax	Foreign investment and regulatory barriers	205	n/a	New heading (split)	Carved out of the former combined trade factor; 205 words on product standards and certification, with components "tested in China" added.
Accounting, compliance, regulation and tax	Export controls and China trade restrictions	1,016	n/a	New heading (split)	Holds export control and forced labour import text from the former combined factor; adds rescission of the January 2025 AI chip licensing rule, partial relaxation of controls since May 2025 and rules on transactions with China linked entities.
Accounting, compliance, regulation and tax	Internal control	148	17	Reworded	Statement that many processes remain manual replaced by a possible inability to assert effective internal control under Section 404.
Accounting, compliance, regulation and tax	Income taxes	550	(179)	Reworded	Adds the One Big Beautiful Bill Act of 4 July 2025 and the OECD safe harbour package of 5 January 2026; company anticipates no material effect on its effective tax rate.
Accounting, compliance, regulation and tax	Legal and regulatory compliance	2,427	37	Reworded (merged)	Absorbs the former export control and anti bribery factors under subheadings; adds the NIS2 directive, the Digital Operational Resiliency Act, a Department of Justice data transfer rule and "secondary tariffs".
Accounting, compliance, regulation and tax	AI development and use	319	(47)	Reworded	Paragraph on the EU AI Act and US state laws removed; adds reliance on third party AI and unclear protection of AI generated intellectual property.
Accounting, compliance, regulation and tax	Combined tax, tariff and trade barriers	0	(2,156)	Dropped (split)	Split into three factors of 1,890 words in total: tariffs, export controls and China trade restrictions, foreign investment and regulatory barriers.
Accounting, compliance, regulation and tax	Export and import controls	0	(634)	Dropped (merged)	Merged into the legal and regulatory compliance factor under an Export Controls subheading.
Accounting, compliance, regulation and tax	Anti bribery and anti corruption	0	(414)	Dropped (merged)	Merged into the legal and regulatory compliance factor.
Ownership of common stock	Stock repurchases	341	(2)	Minor edits	Singular programme changed to programmes after the $1.5bn authorisation of May 2025.
Ownership of common stock	Insider control	210	0	Minor edits	Combined ownership of insiders and holders above 10% updated from 17.9% to 17.3%.
General	Litigation	223	(220)	Reworded	Description of the WSOU patent case removed (220 words); factor moved from its own category to General.
General	Personnel	362	12	Minor edits	Competition for staff with AI skills added.
General	Catastrophic events	309	(18)	Reworded	Heading rewritten; adds systemic failures such as power outages and transportation network malfunctions; pandemic references removed.

Source: 10-K FY2024, 10-K FY2025

Figure 8.3 Change in word count by risk factor, FY2025 against FY2024

Arista 10-Q risk factor updates in 2026

10-Q adds extended payment terms for certain large customers, expected timing mismatches between component cost and customer pricing, and evaluation inventory as a source of revenue variability; 6 factors are reworded and 17 carry minor edits.

Table 8.3 Item 1A changes in the Q2 2026 10-Q against the FY2025 10-K

Risk factor	Change in words	What changed
Sole source components	(32)	Heading adds "which increases the risk of supply shortages, extended lead times or supply changes"; merchant silicon sentence condensed.
Customer concentration	46	Adds that "Volatility and uncertainty in the demand for AI models underlying network systems could increase this unpredictability" and constrained memory and silicon availability; favourable terms now described as a factor that "negatively impacts our gross margins".
Tariffs	10	Import of products "has been and continues to be affected" by tariff policy; adds the February 2026 Supreme Court ruling that tariffs under the International Emergency Economic Powers Act were invalid, Section 122 tariffs and negotiations on the United States Mexico Canada Agreement.
Purchase commitments and supply shortages	36	Memory tightening extended to silicon and attributed to "rising demand for AI infrastructure and advanced automotive systems"; adds expected "timing mismatches" between component price increases and customer pricing.
Revenue growth volatility	27	Evaluation inventory added beside product deferred revenue as a source of variability; order cancellations after shipping delays added.
Gross margin variability	31	Adds that escalating tariff measures or worse supply conditions that cannot be passed on would further affect gross margins; silicon added beside memory.
Quarterly results variability	24	Adds bullets "our reliance on a predominant merchant silicon vendor" and "any changes in the amount of our purchase commitments".
Competition	(33)	Sentence removed that stated AI Ethernet products lacked broad market awareness against InfiniBand products; vertical integration text now covers bundled hardware and software.
Market awareness of new products	(13)	Statement that AI Ethernet, campus and security products lacked broad market awareness replaced by a general sentence on new products.
Credit risk	50	Adds "we also grant extended payment terms with certain large customers" and the resulting credit risk and upfront working capital requirements.
Component supply and inventory	45	Heading now opens "Supply chain constraints"; adds "the war in Iran"; inventory and purchase commitments expected "to remain elevated".
Cybersecurity incidents	65	Adds AI enabled attack methods and outages or security exploits of managed network solutions for customers.
Export controls and China trade restrictions	7	January 2025 AI chip rule now described through an announced intention to rescind and a nonenforcement posture, previously as rescinded.
Income taxes	(26)	Paragraph on the One Big Beautiful Bill Act removed; adds California Senate Bill 122 of June 2026, which extends the $5m cap on business tax credit use through 2029.
AI development and use	85	Rewritten at 404 words; restores EU and US state AI legislation; adds inadvertent disclosure of confidential information through AI use.
Stock price volatility	14	Adds "sales of our common stock by our insiders" to the list of price drivers.
Insider control	17	Heading adds "could affect our stock price"; combined ownership updated to 17.0% at 30 June 2026.
Catastrophic events	0	Exposed locations now read "Asia and Mexico", previously Japan and Taiwan.

Source: 10-K FY2025, 10-Q Q2 2026

Figure 8.4 Mentions of selected terms in Item 1A, last three filings

Arista legal proceedings, market risk and cybersecurity governance

Named legal matters in Note 5: 0 in the FY2025 10-K and 0 in the Q2 2026 10-Q. A 100 basis point rate rise would have lowered portfolio value by about $100m at end 2025; revenue is substantially all in US dollars and currency exposure is unhedged.

Table 8.4 Legal proceedings disclosed in the financial statement notes

Matter	FY2024 10-K, Note 5	10-Q Q2 2025	FY2025 10-K and Q2 2026 10-Q, Note 5
WSOU Investments LLC v. Arista, patent infringement suit filed 25 November 2020 on switching products	Stayed since 1 July 2022; Patent Trial and Appeal Board ruled all challenged claims unpatentable on 30 May 2023; loss assessed as reasonably possible, amount unestimable	Last filing that describes the case, as current litigation in Item 1A and Note 5	0 mentions in Note 5 and Item 1A
Other claims in the ordinary course of business	Provisions for contingent losses described as insignificant	Provisions described as insignificant	Provisions described as insignificant at 31 December 2025 and 30 June 2026

Source: 10-K FY2024, 10-Q Q2 2025, 10-K FY2025, 10-Q Q2 2026

Table 8.5 Item 7A market risk disclosures as filed

Measure	Q2 2026, 30 Jun 2026	FY2025, 31 Dec 2025	FY2024, 31 Dec 2024
Cash, cash equivalents and marketable securities	$13.3bn	$10.7bn	$8.3bn
Market value change for a 100 basis point rate rise	n/a	$100m	$70m
Gross unrealised losses on debt securities	$40.8m	$1.5m	n/a
Weighted average remaining duration of marketable debt securities	1.4 years	n/a	n/a
Foreign currency hedging contracts	0	0	0
Change in market risk exposure since year end	Described as immaterial	n/a	n/a

Source: 10-K FY2024, 10-K FY2025, 10-Q Q2 2026

Table 8.6 Item 1C cybersecurity disclosure, FY2025 against FY2024

Topic	FY2025 10-K	FY2024 10-K
Board oversight	Audit Committee receives quarterly reports from the Chief Information Security Officer (CISO) and reports to the Board at least annually	Same
Programme lead	Cybersecurity team led by a Vice President who serves as CISO, with over 20 years of industry experience	Information Security team led by the same role
Team	Over 20 members; two leads with more than 20 years of security experience each	Same
Management supervision	CISO in consultation with the Chief Technology Officer and Chief Financial Officer	Same
Material incidents	No risks from cybersecurity threats identified that have materially affected or are likely to materially affect the company	Same
Insurance	Cyber liability insurance maintained	Same

Source: 10-K FY2024, 10-K FY2025

9 Stock Price, Scenarios & Sensitivity

Three sets of stated assumptions for FY2027 to FY2029 give arithmetic outcomes of $119, $286 and $497 per share at end FY2029, against a close of $216.74 on 9 October 2026. At the base case margin and exit multiple, revenue growth of 10.7% per year returns the current price.

Price, market cap, EV and the main multiples are in Table 4.5.

Table 9.1 Share price history and further TTM multiples

Measure	Value	Basis
52 week closing range	$116.13 to $216.74	Daily closes
Change since October 2021 month end	746%	From $25.61, split adjusted
Change since 31 December 2025	65.4%	From $131.03
EV / operating income	57.2x	TTM operating income $4.55bn
FCF yield	1.9%	TTM FCF $5.16bn over market cap

Source: 10-Q Q2 2026, 10-Q Q1 2026, 10-Q Q3 2025, 10-K FY2025; Market data, 9 October 2026

Figure 9.1 ANET month end share price, October 2021 to 9 October 2026

Table 9.2 Share price after the last four results releases

Release	Quarter	Close on release day	Next session close	Next session change	Change over release month
4 November 2025	Q3 2025	n/a	n/a	n/a	(17.1)%
12 February 2026	Q4 2025	n/a	n/a	n/a	(5.8)%
5 May 2026	Q1 2026	$170.22	n/a	(13.6)%	(7.7)%
4 August 2026	Q2 2026	$190.51	$197.31	3.6%	8.5%

Source: Market data, 9 October 2026. Change over release month compares month end closes.

Scenario analysis FY2027 to FY2029: worst, base and best case

All cases start from the FY2026 estimate in Table 9.3. Base case returns less than the current price if revenue growth falls below 10.7% per year or if exit P / E falls below 32.6x. 10-Q Q2 2026 states that the long term trajectory of AI driven networking demand is unknown.

Table 9.3 FY2026 estimate build

Item	H1 2026 filed	Q3 2026	Q4 2026 implied	FY2026 estimate	Basis
Revenue	$5.74bn	$3.30bn	$3.56bn	$12.60bn	Q3: company guidance in the 8-K. FY2026: Earnings call, 4 August 2026, outlook of about $12.6bn. Q4 is the remainder
Revenue growth, year on year	36.5%	43.0%	42.9%	39.9%	Derived from the revenue row
Non GAAP operating margin	48.9%	48% to 49%	48% to 49%	48% to 49%	Q3: company guidance in the 8-K. FY2026: Earnings call, 4 August 2026
GAAP operating margin	44.1%	43.8%	43.8%	43.9%	Assumption: 48.5% non GAAP midpoint less the H1 2026 gap of 4.7 points
GAAP operating income	$2.54bn	n/a	n/a	$5.54bn	Revenue times GAAP operating margin
Other income	$240m	n/a	n/a	$480m	Assumption: H2 2026 equals H1 2026
Effective tax rate	19.5%	19.5%	19.5%	19.5%	Assumption: H1 2026 rate
Diluted shares	1.27bn	1.28bn	n/a	1.28bn	Earnings call, 4 August 2026: about 1.28bn for Q3 2026
Diluted GAAP EPS	$1.75	n/a	n/a	$3.79	Derived
FCF	$2.69bn	n/a	n/a	$5.91bn	Assumption: H1 2026 FCF margin of 46.9%

Source: 10-Q Q2 2026, 8-K Exhibit 99.1 of 4 August 2026; Earnings call, 4 August 2026

Table 9.4 Scenario assumptions and FY2029 outcomes

Line	Type	Worst	Base	Best
Starting revenue, FY2026 estimate (Table 9.3)	Assumption	$12.60bn	$12.60bn	$12.60bn
Starting diluted shares, FY2026 estimate	Assumption	1.28bn	1.28bn	1.28bn
Revenue growth per year, FY2027 to FY2029	Assumption	10%	22%	32%
Gross margin	Assumption	60.0%	62.5%	64.0%
Operating margin (GAAP)	Assumption	38%	44%	47%
FCF margin	Assumption	35%	42%	47%
Diluted share count change per year	Assumption	0.5%	0.0%	(0.5)%
Exit P / E on FY2029 EPS: low (28.4x), average (43.2x) and high (54.7x) of year end P / E, FY2021 to FY2025, rounded	Assumption	28x	43x	55x
Other income per year	Assumption	$480m	$480m	$480m
Effective tax rate	Assumption	19.5%	19.5%	19.5%
Discount applied to the FY2029 price	Assumption	0%	0%	0%
FY2029 revenue	Outcome	$16.77bn	$22.88bn	$28.98bn
FY2029 gross profit	Outcome	$10.06bn	$14.30bn	$18.55bn
FY2029 operating income	Outcome	$6.37bn	$10.07bn	$13.62bn
FY2029 net income	Outcome	$5.52bn	$8.50bn	$11.36bn
FY2029 FCF	Outcome	$5.87bn	$9.61bn	$13.62bn
FY2029 diluted shares	Outcome	1.30bn	1.28bn	1.26bn
FY2029 diluted EPS	Outcome	$4.26	$6.65	$9.03
Implied price, end FY2029	Outcome	$119	$286	$497
Against close of $216.74	Outcome	(45)%	32%	129%
FCF, FY2027 to FY2029 cumulative	Outcome	$16.06bn	$23.94bn	$31.76bn

Source: 10-Q Q2 2026, 8-K Exhibit 99.1 of 4 August 2026, 10-K FY2025; Market data, 9 October 2026. Outcomes are arithmetic results of the assumptions listed.

Figure 9.2 Revenue and diluted EPS, FY2021 to FY2025 filed, FY2026 estimate and scenarios to FY2029

Table 9.5 Scenario paths by fiscal year

Case	Fiscal year	Revenue	Operating income	FCF	Diluted EPS
Worst	FY2027	$13.86bn	$5.27bn	$4.85bn	$3.61
Worst	FY2028	$15.25bn	$5.79bn	$5.34bn	$3.92
Worst	FY2029	$16.77bn	$6.37bn	$5.87bn	$4.26
Base	FY2027	$15.37bn	$6.76bn	$6.46bn	$4.57
Base	FY2028	$18.75bn	$8.25bn	$7.88bn	$5.51
Base	FY2029	$22.88bn	$10.07bn	$9.61bn	$6.65
Best	FY2027	$16.63bn	$7.82bn	$7.82bn	$5.26
Best	FY2028	$21.95bn	$10.32bn	$10.32bn	$6.88
Best	FY2029	$28.98bn	$13.62bn	$13.62bn	$9.03

Source: scenario arithmetic on inputs in Table 9.4; starting point from 10-Q Q2 2026 and 8-K Exhibit 99.1 of 4 August 2026.

Critical factors behind the best case and demand drivers

Table 9.6 Best case factors and the filed data point for each

Factor	Filed data point	Best case input it supports
Deferred revenue	$6.87bn at 30 June 2026, up 69.0% year on year; the 10-Q attributes the H1 increase to product deferrals on contracts with acceptance terms and to support contracts	Revenue growth of 32% per year
Contracted future revenue	RPO of $8.4bn, 91% expected within two years; equal to 67% of FY2026 estimated revenue	Revenue growth of 32% per year
Purchase commitments	Non cancellable purchase commitments of $9.7bn, up 43% from $6.8bn at 31 December 2025; $9.4bn due within 12 months	Revenue growth of 32% per year
Customer trials	Evaluation inventory of $616m, up 53% from $404m at 31 December 2025	Revenue growth of 32% per year
Customer mix	Cloud and AI Titans 48%, Enterprise 32%, AI and Specialty Providers 20% of FY2025 revenue; two customers at 26% and 16%	Growth and gross margin of 64%
Gross margin	62.4% in H1 2026 against 64.5% in H1 2025; the 10-Q attributes the decrease to a higher share of sales to large customers	Gross margin of 64%, the FY2024 and FY2025 level
Operating expense ratio	18.3% of revenue in H1 2026 against 20.7% in H1 2025	Operating margin of 47%
Capital return capacity	Cash and marketable securities of $13.34bn, 4.9% of market capitalisation; $817.9m repurchase authority remaining; H1 2026 repurchases $0	Share count change of (0.5)% per year

Source: 10-Q Q2 2026, 10-K FY2025

Sensitivity analysis: growth, exit multiple and operating margin

Exit P / E moves the base case implied price between $186 and $366, revenue growth between $213 and $359, and operating margin between $249 and $305.

Figure 9.3 Sensitivity of implied price and FY2029 EPS to growth, exit multiple and operating margin

Figure 9.4 Implied price range by input, each moved from worst case to best case value

Table 9.7 Filed history FY2021 to FY2025, FY2026 estimate and scenario inputs

Measure	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026E	Worst	Base	Best
Revenue growth	27.2%	48.6%	33.8%	19.5%	28.6%	39.9%	10%	22%	32%
Operating margin (GAAP)	31.4%	34.9%	38.5%	42.0%	42.8%	43.9%	38%	44%	47%
FCF margin	32.3%	10.2%	34.1%	52.5%	47.2%	46.9%	35%	42%	47%
Diluted share count change	n/a	(0.9)%	0.2%	1.0%	(0.4)%	0.1%	0.5%	0.0%	(0.5)%
Diluted EPS	$0.66	$1.07	$1.65	$2.23	$2.75	$3.79	$4.26	$6.65	$9.03
Year end P / E	54.7x	28.4x	35.8x	49.6x	47.6x	57.1x	28x	43x	55x

Source: 10-K FY2021, 10-K FY2022, 10-K FY2023, 10-K FY2024, 10-K FY2025, 10-Q Q2 2026; Market data, 9 October 2026. FY2021 to FY2023 per share data are restated for the December 2024 stock split. Scenario columns show the annual input for FY2027 to FY2029, FY2029 EPS and the exit multiple. FY2026E = FY2026 estimate; its P / E is the 9 October 2026 close over estimated FY2026 EPS.

Sources and method

Filings: 10-K FY2025 and the 10-K filings for FY2021 to FY2024; 10-Q Q2 2026 and the 10-Q filings from Q1 2024; DEF 14A of 16 April 2026; 8-K filings of 4 August 2026 (results) and 2 June 2026 (annual meeting); Forms 4, 144, 13F and Schedule 13G; peer 10-K and 10-Q filings.
SEC filings via SEC-API.io.
Market data as of 9 October 2026.
Earnings call material from public transcripts, in indirect speech and labelled with the call date.
Third party research: IDC and Dell'Oro Group releases as dated in Table 4.2.
Scenario figures are arithmetic outcomes of stated assumptions.

Sources appendix

Every filing referenced in this analysis, sorted by form and then by date. Each accession number links to the filing on sec.gov. Count: 155 filings.

Table A.1 Arista Networks, Inc. filings, with ownership filings by holders and insiders

Form	Period or filing date	Accession number
10-K	31 Dec 2025	0001596532-26-000013
10-K	31 Dec 2024	0001596532-25-000028
10-K	31 Dec 2023	0001596532-24-000043
10-K	31 Dec 2022	0001596532-23-000016
10-K	31 Dec 2021	0001596532-22-000026
10-Q	30 Jun 2026	0001596532-26-000175
10-Q	31 Mar 2026	0001596532-26-000078
10-Q	30 Sep 2025	0001596532-25-000286
10-Q	30 Jun 2025	0001596532-25-000216
10-Q	31 Mar 2025	0001596532-25-000106
10-Q	30 Sep 2024	0001596532-24-000368
10-Q	30 Jun 2024	0001596532-24-000279
10-Q	31 Mar 2024	0001596532-24-000173
10-Q	30 Sep 2019	0001596532-19-000230
10-Q	31 Mar 2017	0001596532-17-000088
8-K	4 Aug 2026	0001596532-26-000174
8-K	2 Jun 2026	0001596532-26-000118
8-K	5 May 2026	0001596532-26-000074
8-K	12 Feb 2026	0001596532-26-000010
8-K	4 Nov 2025	0001596532-25-000284
8-K	5 Sep 2025	0001596532-25-000258
8-K	5 Aug 2025	0001596532-25-000214
8-K	13 Jun 2025	0001596532-25-000170
8-K	3 Jun 2025	0001596532-25-000148
8-K	1 May 2025	0001596532-25-000103
8-K	14 Mar 2025	0001596532-25-000077
8-K	18 Feb 2025	0001596532-25-000018
8-K	3 Dec 2024	0001596532-24-000402
8-K	1 Dec 2023	0001596532-23-000324
8-K	13 Feb 2023	0001596532-23-000015
8-K	14 Feb 2022	0001596532-22-000025
DEF 14A	16 Apr 2026	0001193125-26-158942
DEF 14A	16 Apr 2025	0001193125-25-082860
S-1	28 Mar 2014	0001193125-14-122171
Schedule 13G	29 Apr 2026	0002100119-26-000141
Schedule 13G/A	26 Mar 2026	0000102909-26-000644
Schedule 13G/A	12 Nov 2024	0000932471-24-000845
Schedule 13G/A	4 Nov 2024	0000932471-24-000305
13F-HR	30 Jun 2026	0000019617-26-000325
13F-HR	30 Jun 2026	0000080255-26-000519
13F-HR	30 Jun 2026	0000093751-26-000583
13F-HR	30 Jun 2026	0000315066-26-002260
13F-HR	30 Jun 2026	0000895421-26-000243
13F-HR	30 Jun 2026	0001193125-26-351426
13F-HR	30 Jun 2026	0001214717-26-000008
13F-HR	30 Jun 2026	0001422848-26-000094
13F-HR	30 Jun 2026	0002012383-26-003238
13F-HR	30 Jun 2026	0002100119-26-001527
13F-HR	30 Jun 2026	0002100121-26-001018
13F-HR	31 Mar 2026	0000019617-26-000225
13F-HR	31 Mar 2026	0000080255-26-000381
13F-HR	31 Mar 2026	0000093751-26-000315
13F-HR	31 Mar 2026	0000315066-26-001390
13F-HR	31 Mar 2026	0000895421-26-000183
13F-HR	31 Mar 2026	0001193125-26-307051
13F-HR	31 Mar 2026	0001214717-26-000006
13F-HR	31 Mar 2026	0001422848-26-000041
13F-HR	31 Mar 2026	0002100119-26-001311
13F-HR	31 Mar 2026	0002100121-26-000861
13F-HR	31 Dec 2025	0000019617-26-000083
13F-HR	31 Dec 2025	0000080255-26-000231
13F-HR	31 Dec 2025	0000093751-26-000100
13F-HR	31 Dec 2025	0000102909-26-000031
13F-HR	31 Dec 2025	0000315066-26-000611
13F-HR	31 Dec 2025	0000895421-26-000187
13F-HR	31 Dec 2025	0001193125-26-053888
13F-HR	31 Dec 2025	0001214717-26-000003
13F-HR	31 Dec 2025	0001422848-26-000005
13F-HR	31 Dec 2025	0002012383-26-000920
13F-HR	30 Sep 2025	0000019617-25-001093
13F-HR	30 Sep 2025	0000080255-25-000782
13F-HR	30 Sep 2025	0000093751-25-000651
13F-HR	30 Sep 2025	0000102909-25-000353
13F-HR	30 Sep 2025	0000315066-25-002929
13F-HR	30 Sep 2025	0000895421-26-000186
13F-HR	30 Sep 2025	0001193125-25-282109
13F-HR	30 Sep 2025	0001214717-25-000016
13F-HR	30 Sep 2025	0001422848-25-000223
13F-HR	30 Sep 2025	0002012383-25-002949
Form 3	11 Jul 2025	0001596532-25-000189
Form 3	18 Mar 2025	0001596532-25-000085
Form 4	9 Oct 2026	0001596532-26-000242
Form 4	8 Oct 2026	0001596532-26-000239
Form 4	6 Oct 2026	0001596532-26-000240
Form 4	5 Oct 2026	0001596532-26-000236
Form 4	23 Sep 2026	0001596532-26-000232
Form 4	21 Sep 2026	0001596532-26-000230
Form 4	14 Sep 2026	0001596532-26-000228
Form 4	27 Aug 2026	0001596532-26-000218
Form 4	25 Aug 2026	0001596532-26-000214
Form 4	24 Aug 2026	0001596532-26-000203
Form 4	24 Aug 2026	0001596532-26-000204
Form 4	24 Aug 2026	0001596532-26-000205
Form 4	24 Aug 2026	0001596532-26-000206
Form 4	24 Aug 2026	0001596532-26-000208
Form 4	24 Aug 2026	0001596532-26-000211
Form 4	24 Aug 2026	0001596532-26-000212
Form 4	12 Aug 2026	0001596532-26-000190
Form 4	7 Aug 2026	0001596532-26-000183
Form 4	7 Aug 2026	0001596532-26-000184
Form 4	6 Aug 2026	0001596532-26-000188
Form 4	5 Aug 2026	0001596532-26-000185
Form 4	5 Aug 2026	0001596532-26-000186
Form 4	14 Jul 2026	0001596532-26-000164
Form 4	22 May 2026	0001596532-26-000109
Form 4	22 Apr 2026	0001596532-26-000068
Form 4	16 Apr 2026	0001596532-26-000060
Form 4	20 Feb 2026	0001596532-26-000029
Form 4	20 Nov 2025	0001596532-25-000303
Form 4	20 Nov 2025	0001596532-25-000304
Form 4	20 Nov 2025	0001596532-25-000306
Form 4	20 Nov 2025	0001596532-25-000307
Form 4	20 Nov 2025	0001596532-25-000308
Form 4	20 Nov 2025	0001596532-25-000309
Form 4	20 Nov 2025	0001596532-25-000310
Form 4	18 Nov 2025	0001596532-25-000290
Form 4	3 Nov 2025	0001596532-25-000288
Form 4	21 Oct 2025	0001596532-25-000279
Form 144	9 Oct 2026	0001959173-26-007324
Form 144	6 Oct 2026	0001950047-26-010084
Form 144	17 Sep 2026	0001958244-26-000616
Form 144	8 Sep 2026	0001950047-26-009209
Form 144	21 Aug 2026	0001968582-26-000863
Form 144	3 Aug 2026	0001968582-26-000767
Form 144	22 Jun 2026	0001968582-26-000649
Form 144	20 May 2026	0001968582-26-000472
Form 144/A	12 Jun 2026	0001958244-26-000371

Table A.2 Filings of peers and other companies

Company	Form	Period or filing date	Accession number
Alphabet	10-K	31 Dec 2025	0001652044-26-000018
Alphabet	10-Q	30 Jun 2026	0001652044-26-000071
Amazon	10-K	31 Dec 2025	0001018724-26-000004
Amazon	10-Q	30 Jun 2026	0001018724-26-000026
Broadcom	10-K	2 Nov 2025	0001730168-25-000121
Broadcom	10-Q	2 Aug 2026	0001730168-26-000080
Broadcom	10-Q	3 Aug 2025	0001730168-25-000098
Celestica	10-K	31 Dec 2025	0001030894-26-000011
Celestica	10-Q	30 Jun 2026	0001030894-26-000044
Celestica	10-Q	30 Jun 2025	0001030894-25-000047
Ciena	10-K	1 Nov 2025	0001628280-25-056698
Ciena	10-Q	1 Aug 2026	0001628280-26-060361
Ciena	10-Q	2 Aug 2025	0000936395-25-000041
Cisco	10-K	25 Jul 2026	0000858877-26-000132
HPE	10-K	31 Oct 2025	0001645590-25-000130
HPE	10-Q	31 Jul 2026	0001645590-26-000080
HPE	10-Q	31 Jul 2025	0001645590-25-000101
Marvell	10-K	31 Jan 2026	0001835632-26-000011
Marvell	10-Q	1 Aug 2026	0001835632-26-000025
Marvell	10-Q	2 Aug 2025	0001835632-25-000189
Meta	10-K	31 Dec 2025	0001628280-26-003942
Meta	10-Q	30 Jun 2026	0001628280-26-050705
Microsoft	10-K	30 Jun 2026	0001193125-26-323660
NVIDIA	10-K	25 Jan 2026	0001045810-26-000021
NVIDIA	10-Q	26 Jul 2026	0001045810-26-000075
NVIDIA	10-Q	27 Jul 2025	0001045810-25-000209
Oracle	10-K	31 May 2026	0001193125-26-277521
Oracle	10-Q	31 Aug 2026	0001193125-26-389274

This report is for information only and is not financial advice.

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