Arista Networks Q1 revenue beats estimates

Arista Networks

05/05/2026 21:18

Overview

U.S. data networking firm's Q1 revenue grew 35% yr/yr, beating analyst expectations

Non-GAAP diluted EPS for Q1 rose to $0.87 from $0.66 a year earlier

Company launched XPO optics for AI data centers, aiming to cut rack and floor space needs

Outlook

Arista Networks expects Q2 2026 revenue of approximately $2.8 bln

Company sees Q2 2026 non-GAAP operating margin of 46-47%

Company expects Q2 2026 non-GAAP diluted net income per share of about $0.88

Result Drivers

PRODUCT INNOVATION - Launch of XPO high-density liquid-cooled pluggable optics and universal AI spine for next-generation data centers cited as key drivers

DISCIPLINED EXECUTION - CFO attributed strong results to disciplined execution despite dynamic macro and supply chain environments

CUSTOMER SATISFACTION - Company highlighted industry-leading net promoter score as evidence of strong customer satisfaction

Company press release: ID:nBw6ChtcBa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$2.71 bln
$2.61 bln (20 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy"

Wall Street's median 12-month price target for Arista Networks Inc is $178.95, about 3.7% above its May 4 closing price of $172.62

The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 42 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)