Overview
- Arista Networks, which reported results Tuesday after the close, fell about 13% to 14% in after-hours trading as investors zeroed in on guidance.
- Q1 revenue rose 35% to $2.71 billion and adjusted EPS reached $0.87, topping estimates and underscoring strong demand.
- For Q2, Arista guided about $2.8 billion in revenue and $0.88 in adjusted EPS, while projecting a 46% to 47% operating margin versus 47.8% in Q1.
- The company lifted its 2026 revenue growth outlook to 27.7%, which trailed many analyst models calling for 28% to 30%.
- Arista also rolled out AI-focused gear, including XPO liquid-cooled pluggable optics that it says can cut networking racks by up to 75% and save up to 44% of floor space.