9 analysts' median target is $187[FMP target], stock is $160, +16.9% upside potential. After Q1 +7.7% EPS beat[FMP earnings], the stock moved -13.6%.
B = MoonshotScore 77[multi-pillar formula] + Council 3/6[6-lens rule]. Form 4: 0 transactions[FMP Form 4].
Q1 consensus: revenue $2.8B[FMP est], EPS $0.89[FMP est]. 8 consecutive quarters of beat[FMP earnings].
Q1 EPS +7.7% beat[FMP] but the stock -13.6% D+1[FMP D+1]. Chantelle Breithaupt promised $54.5M CapEx + a sequential decline in Q1 during the Q1 earnings call[Chantelle Breithaupt capex transcript].
Watchlist
Q2 2026 Guidance
q2_2026_guidance
Arista expects approximately $2.8 billion in revenue for the second quarter of 2026, with a gross margin between 62% and 63%, an operating margin between 46% and 47%, and diluted earnings per share of approximately $0.88.
"More specifically, now our guidance for the second quarter is as follows: now with the added quarterly metric of diluted earnings per share, revenues of approximately $2.8 billion, gross margin between 62% and 63%, operating margin between 46% and 47% and diluted earnings per share of approximately $0.88 with approximately 1.27 billion diluted shares."
- Chantelle Breithaupt, CFO - Q1 FY26 Earnings Call - May 5, 2026
Capex Facility Expansion
capex_facility_expansion
Arista's capital expenditures for Q1 were $54.5 million, with approximately $40 million allocated to the construction of expanded facilities in Santa Clara, projected to reach $180 million in 2026.
"Capital expenditures for the quarter were $54.5 million. We continue the construction work to build expanded facilities in Santa Clara. In Q1, we incurred approximately $40 million in CapEx related to this program and estimate it will reach $180 million in 2026."
- Chantelle Breithaupt, CFO - Q1 FY26 Earnings Call - May 5, 2026
Fy26 Revenue Ai Target Increase
fy26_revenue_ai_target_increase
Arista has increased its fiscal year 2026 revenue growth outlook to 27.7%, aiming for $11.5 billion, and raised its AI sales target to $3.5 billion, more than doubling annual AI sales.
"Nevertheless, it gives us confidence to increase our forecasted growth slightly to 27.7%, aiming now for $11.5 billion for 2026. We also increased our AI target now to $3.5 billion this year, thereby more than doubling our AI sales annually."
- Jayshree Ullal, CEO - Q1 FY26 Earnings Call - May 5, 2026
Q1 Revenue Growth
q1_revenue_growth
Arista reported strong first quarter 2026 results with total revenues of $2.71 billion, up 35.1% year-over-year and exceeding its guidance of $2.6 billion.
"To start off, total revenues in Q1 were $2.71 billion, up 35.1% year-over-year and above our guidance of $2.6 billion. Growth was seen across the customer sectors led by our AI and specialty providers customers within the quarter."
- Chantelle Breithaupt, CFO - Q1 FY26 Earnings Call - May 5, 2026
Purchase Commitments Inventory Increase
purchase_commitments_inventory_increase
Arista's purchase commitments increased to $8.9 billion and inventory rose to $2.38 billion, with these increases viewed as a calculated investment for new products and AI deployments.
"Our purchase commitments at the end of the quarter were $8.9 billion, up from $6.8 billion at the end of Q4. As mentioned in prior quarters, this expected activity mostly represents purchases for chips related to new products and AI deployments. We ended the quarter with $2.38 billion in inventory, up from $2.25 billion last quarter. This marginal increase is a calculated investment in the mix of raw materials to fulfill our growing demand."
- Chantelle Breithaupt, CFO - Q1 FY26 Earnings Call - May 5, 2026
High Speed Switching Market Share
high_speed_switching_market_share
Arista has achieved the #1 market share in high-speed switching for the greater than 10 gigabit Ethernet category in 2025, surpassing many incumbent vendors.
"Arista has experienced significant velocity in all our sectors in Q1 and are now commanding the #1 market share in high-speed switching in the greater than 10 gigabit Ethernet category. With that, we have overtaken many incumbent vendors according to major market analysts for 2025."
- Jayshree Ullal, CEO - Q1 FY26 Earnings Call - May 5, 2026
Stock Expert AI - Methodology
multi-pillar methodology. Revenue Growth and Cash Runway strong.
How is it calculated? ->6 investor frameworks. 3 bullish (Ray Dalio, Ken Griffin, Buffett), 0 bearish (none), 3 neutral (Jim Simons, Klarman, Munger).
How is it calculated? ->Quality business, trading at fair value.
How is it calculated? ->Past Performance
Q1 (May 5, 2026): EPS $0.87 vs $0.81 est[FMP], +7.7% beat. D+1 movement: -13.6%[FMP D+1]. Decline despite beat - market reacted to guidance, not numbers.
Q1: EPS $0.87 vs $0.81 beat[FMP], stock -13.6% D+1[FMP]. Chantelle Breithaupt Q1 transcript: "More specifically, now our guidance for the second quarter is as follows: now with the added quarterly metric of diluted earnings per share, revenues of approximately $2.8 billion, gross margin between 62% and 63%, operating margin between 46% and 47% and diluted earnings per share of approximately $0.88 with approximately 1.27 billion diluted shares."[Chantelle Breithaupt].
"More specifically, now our guidance for the second quarter is as follows: now with the added quarterly metric of diluted earnings per share, revenues of approximately $2.8 billion, gross margin between 62% and 63%, operating margin between 46% and 47% and diluted earnings per share of approximately $0.88 with approximately 1.27 billion diluted shares."
- Chantelle Breithaupt, CFO - Q1 FY26 Earnings Call - May 5, 2026
No RPO/backlog concentration disclosed in Q1 earnings call.
Q1 CapEx $54.5M[FMP cashflow]. Chantelle Breithaupt Q1 transcript: "Capital expenditures for the quarter were $54.5 million. We continue the construction work to build expanded facilities in Santa Clara. In Q1, we incurred approximately $40 million in CapEx related to this program and estimate it will reach $180 million in 2026."[Chantelle Breithaupt transcript]. Q1 op margin 42.7%[FMP op margin] - this level in Q1 is sensitive to CapEx revision risk.
"Capital expenditures for the quarter were $54.5 million. We continue the construction work to build expanded facilities in Santa Clara. In Q1, we incurred approximately $40 million in CapEx related to this program and estimate it will reach $180 million in 2026."
- Chantelle Breithaupt, CFO - Q1 FY26 Earnings Call - May 5, 2026
Not advice - a structural framework for earnings night. Decision discipline is yours.
Market Outlook
You read it in 5 minutes. When the numbers come out on Tuesday evening - you know what you're looking at.
Data arrives at night. The framework is ready now.
Data arrives on Tuesday evening. The framework is ready on this page: Q1 EPS threshold $0.89[FMP], CapEx threshold "below $54.5M"[Chantelle Breithaupt]. Two anchors, three scenarios.
Comparison Stock Expert AI Pro $24/month ($240/year), 77% cheaper than the total of three earnings-tracking tools ($1,059/year -> $240/year).
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Prices as of April 2026. Sources: seekingalpha.com/subscriptions - tipranks.com/pricing - trendspider.com/pricing
Stock Expert AI Pro: $24/month ($240/year). Council 7-lens analysis + MoonshotScore multi-pillar + Insider tracker + Technical levels - all in one platform, for every stock.
Educational tool, not investment advice. Past performance does not guarantee future results.
Calendar
DATA GAP: Events not in the FMP /stable/calendar feed - Investor day, analyst day, product launches, regulatory dates. These require company IR page scraping or manual calendar entry.
This Arista Networks, Inc. (ANET) earnings preview covers the analyst consensus, key catalysts, and what to watch on the earnings call.
Consensus EPS, revenue guidance, segment growth rates, and the tone of management commentary — the full breakdown with sources is on this page.
Figures are sourced from Financial Modeling Prep (FMP) fundamentals and consensus data plus official earnings-call transcripts; derived metrics are labeled with their source next to each figure.
No. This page is educational research, not investment advice. It summarizes analyst consensus and company data; consult a licensed financial advisor before making any investment decision.