Arista Networks cleared $3.04 billion in the quarter ended June 30. It was the firm's first quarter above $3 billion in revenue.

Total revenue rose 37.7 percent year over year. Sequential growth from Q1 2026 hit 12.1 percent.

What is actually new in the numbers?

The Santa Clara switch vendor lifted full-year 2026 revenue guidance by $1.1 billion to $12.6 billion, a 44 percent increase over 2025 sales that the company itself modeled off its own backlog.

Product revenue climbed 38.8 percent to $2.61 billion in the quarter. Services revenue rose 31.3 percent to $430.5 million. Operating income grew 39.7 percent to $1.38 billion. Net income reached $1.21 billion, equal to 40 percent of revenue.

How thick is the order book?

Cash and equivalents totaled $13.34 billion at quarter end, up 50.9 percent from a year earlier. Deferred revenue reached $6.87 billion, up 69 percent. Customer purchase commitments hit $9.7 billion, 2.7 times the year-ago figure.

Arista does not break software subscriptions out in its filings, leaving analysts to model the line at roughly $137.2 million, up 4.3 times year over year, paired with $430.5 million in services.

What is "scale-across," and why does it matter?

Within the AI networking bucket, Chief Executive Jayshree Ullal splits demand three ways. Scale-across links data centers and regions. Scale-up binds memory inside a single rack. Scale-out loosely couples multiple racks together.

Ullal told analysts that scale-across would account for about 30 percent of 2026 AI network revenue, or roughly $1.08 billion, with scale-up and scale-out filling the remaining 70 percent at about $2.52 billion. She sized the 2026 scale-across opportunity at $3 billion for switch gear and $1 billion for optics; both the 2030 figure of $15 billion switching and $5 billion optics remain a roadmap estimate rather than a contracted number.

How exposed is Arista to Nvidia's grip on scale-up?

Arista plans to field switches built around Broadcom's Tomahawk 6 Ultra ASIC for scale-up. That business depends on customers moving off Nvidia's NVLink and NVSwitch. The migration is slow.

Ullal framed the dynamic this way: "Where it's non-Nvidia, Arista will be excited and will be working more closely both in the scale up and scale out — in some cases to build custom racks with their custom processors so that we can better tune our network with the behavior for their inference or training engine. In the Nvidia cases, it's going to take a bit longer."

The analyst note accompanying the report casts Nvidia's eventual scale-up share at roughly 65 percent, down from near-total today, contingent on merchant accelerator adoption that none of the supply chain disclosures confirm.

How large is the data-center business inside Arista?

In the analyst's disaggregation, the data-center business posted $2.82 billion in quarterly sales, up 37.7 percent. Operating profit hit $1.28 billion, or 45.4 percent of revenue. The campus line should deliver about $1.25 billion for the full year, implying roughly 53.4 percent growth.

The three backlog signals, cash, deferred revenue, and forward purchase commitments, point in the same direction. None of them yet prove the company can protect margin if component pricing spikes or hyperscaler order timing slips before Broadcom switch allocations clear.

Whether Nvidia frees up enough scale-up sockets for Broadcom-powered alternatives to ship in volume will decide whether the second half of 2026 matches the first.