Abstract
Arista Networks will report quarterly earnings on February 12, 2026 Post Market; investors expect continued AI-led demand and cloud spending to support growth while closely watching margins, service momentum, and any commentary on 800G deployment timing.Market Forecast
Consensus modeling for the current quarter points to revenue of $2.38 billion, up 25.17% year over year, EBIT of $1.09 billion with an estimated year-over-year increase of 28.38%, and adjusted EPS of $0.76 with an expected year-over-year increase of 33.09%. Forecast commentary implies stable-to-healthy profitability, with investors focused on gross profit margin and net interest rate prints to validate operating discipline; year-over-year comparisons are favorable given robust AI networking demand.Management’s mix highlights center on products and services supporting cloud and large enterprise use-cases. The most promising segment is products, anchored by data center switching tied to AI and cloud build-outs; products revenue was $1.91 billion last quarter, and continued double-digit year-over-year growth is anticipated as 400G and early 800G programs scale.
Last Quarter Review
Arista Networks delivered revenue of $2.31 billion, a gross profit margin of 64.56%, net profit attributable to shareholders of $0.85 billion, a net profit margin of 36.95%, and adjusted EPS of $0.75, with year-over-year growth of 25.00% on EPS and 27.46% on revenue. Net profit declined 4.03% quarter over quarter, reflecting normal seasonality against sustained margin strength and disciplined operating execution.Product revenue reached $1.91 billion and service revenue totaled $0.40 billion, showcasing broad-based demand across cloud titans and large enterprise networking. Momentum in data center switching continued to outpace campus, with services providing resilient recurring revenue support and visibility.
Current Quarter Outlook (with major analytical insights)
Core Switching and Routing Franchise
Arista Networks’ core franchise is expected to remain the key earnings engine this quarter as hyperscale and cloud service providers continue building out high-bandwidth leaf-spine fabrics to support AI clusters and general purpose workloads. The revenue forecast of $2.38 billion reflects robust orders tied to 400G deployments, accompanying optics, and software features that enable deterministic performance at scale. A stable gross profit margin near the mid-sixties would indicate disciplined pricing, favorable mix, and tight cost control despite component and logistics fluctuations.Within the core platforms, the cadence of AI-related fabrics should again lead unit velocity, while enterprise refresh cycles contribute incremental volume. The company’s operating model suggests that higher volumes can flow through efficiently, supporting EBIT leverage near the forecast $1.09 billion. Investors are likely to parse commentary on lead times, backlog normalization, and linearity; sustained order visibility into mid-2026 would support confidence in the implied 25.17% revenue growth trajectory and provide a cushion for any elongated customer qualification cycles.
High-Conviction Growth Vector: Products for AI and Cloud Fabrics
The product portfolio tied to AI training and inference fabrics remains the most compelling growth driver. Last quarter’s products revenue of $1.91 billion demonstrated the scale of deployments underway, and the current quarter’s setup is supported by cloud titans expanding 400G and piloting 800G backbones. A healthy acceptance rate on next-generation hardware, together with high attach for optics and feature-rich EOS software, should defend gross profit margin while sustaining top-line growth.Timing for 800G is a pivotal watch item. If management signals that 800G qualification is progressing along expected timelines with initial revenue contribution in the near term, investors could extrapolate an extended multi-year cycle. Conversely, if customers slow transitions pending optics availability or interoperability testing, the mix could skew to 400G longer, which still supports growth but may modestly temper near-term margin expansion. Services tied to large installed bases can offset any product mix variability, providing steadier contribution and supporting overall profitability.
Key Stock Price Drivers This Quarter
Three variables are likely to influence the share price reaction around results and guidance. First, gross profit margin: a print and guide consistent with mid-sixties would validate cost discipline and mix resilience; a material variance could reset expectations for operating leverage. Second, commentary on AI networking demand and the 800G transition: clear confirmation of deployment schedules and customer breadth should anchor the multi-quarter growth case, while any pushouts could prompt estimate revisions. Third, service momentum and software monetization: higher recurring services revenue improves visibility and margin stability, and evidence of strong attach rates can support multiple expansion.Investors will also monitor net profit margin relative to last quarter’s 36.95% as a gauge of expense control amid growth investments. If operating expenses scale efficiently against the projected $2.38 billion in revenue, EBIT flow-through near $1.09 billion becomes credible. Finally, management’s tone on enterprise spending—especially campus refresh and security adjacencies—can influence how markets model the durability of growth beyond hyperscale.
Analyst Opinions
Analyst sentiment is predominantly bullish over the past six months, with multiple institutions reaffirming positive views on Arista Networks. Citi maintained a Buy rating, highlighting AI and cloud growth potential and keeping a $176.00 price target. William Blair reiterated an Outperform view, citing strategic expansion and the company’s ability to capitalize on accelerating next-generation network upgrades. KeyBanc also maintained a Buy stance, pointing to continued demand strength from cloud customers and favorable product mix. Additional supportive perspectives came from Evercore ISI, Wells Fargo, Mizuho Securities, and Bank of America Securities, which collectively emphasized resilience in enterprise demand, strong execution, and leverage to AI-driven data center spending.Given the balance of commentary, the ratio of bullish to bearish opinions skews clearly toward bullish, and the majority view underscores confidence in sustained revenue growth and disciplined margins through the AI networking cycle. The common threads across the bullish camp include expectations for double-digit year-over-year revenue growth near 25.17%, healthy gross profit margin supported by product and software mix, and improving EPS trajectory aligned with scale benefits. Many analysts are watching for signals on 800G ramp timing, backlog quality, and services contribution; confirmation on these fronts would likely reinforce upward revisions and validate the earnings power implied by consensus forecasts.