Arista Networks, a leader in data-driven, client-to-cloud networking for large-scale AI, data center, campus, and routing environments, reported its financial results for the first quarter ended March 31, 2026. First-quarter revenue reached $2.709 billion, an increase of 8.9% sequentially and a significant 35.1% year-over-year, surpassing the average market expectation of $2.62 billion. GAAP diluted earnings per share were $0.80, while non-GAAP diluted EPS was $0.87, both exceeding market expectations and compared to $0.64 and $0.661, respectively, in the prior-year period. The company reported an adjusted operating margin of 47.8%, higher than the previously guided 46.4%. However, the adjusted gross margin was 62.4%, slightly below the general market consensus of 62.7%.

Jayshree Ullal, Chairperson and Chief Executive Officer of Arista Networks, stated, "Arista had a strong start to 2026 with outstanding performance and an industry-leading Net Promoter Score. We are uniquely positioned to capitalize on the critical convergence opportunity from secure client to campus to cloud and AI networking."

Chantelle Breithaupt, Chief Financial Officer of Arista Networks, commented, "We are proud of the strong start to fiscal year 2026. Despite a still variable macro and supply chain environment, our results demonstrate the team's disciplined execution. Achieving 35% revenue growth while delivering non-GAAP EPS of $0.87 shows our ability to drive high-quality growth with a strict focus on the bottom line."

Key company developments during the quarter included the launch of the XPO high-density liquid-cooled pluggable optics module. Designed for next-generation AI data centers, the XPO module can reduce network racks by up to 75% and save 44% of floor space compared to traditional pluggables, supporting low-power AI scale-out interconnects like shorter copper cables and RF. The 2026 Net Promoter Score reached a high of 89. The updated NPS shows that 94% of customers hold a very positive view of the company. This industry-leading metric underscores the company's focus on driving customer success and satisfaction. Additionally, the company is powering AI centers with its AI Spine. Arista introduced a universal AI Spine based on the 7800 chipset, offering massive scale, predictable performance, and high-speed interface support. Robust features like Virtual Output Queuing eliminate head-of-line blocking, while large buffers absorb AI microburst traffic and prevent PFC storms.

For the second quarter of 2026, the company provided a financial outlook expecting revenue of approximately $2.8 billion, a non-GAAP operating margin between 46% and 47%, and non-GAAP diluted earnings per share of approximately $0.88. At the time of writing, the stock was down 11.62% in after-hours trading.