AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Evidence
The Arista EOS network architecture provides a foundational set of services for continuous streamed device state, telemetry, packet, flow, alert, sensor, and third-party data into an aggregated Network Data Lake (“Arista NetDL™”).
Business / Software and Services / EOS and NetDL · Filed 17/02/2026
Unlike traditional domain-specific management solutions, CloudVision enables consistent, zero-touch network operations across data centers, campus wired and wireless networks, routing interconnects, and multi-cloud networks, thus helping to break down the complexity of siloed management approaches.
Business / Software and Services / CloudVision operations · Filed 17/02/2026
Customers, especially our large customers, often view the purchase of our products as a significant and strategic decision and require considerable time to evaluate, test and qualify our products prior to making a purchase decision and placing an order.
Risk Factors / Customers and Sales / evaluation and qualification · Filed 05/08/2026
In addition, service revenue increased by $309.7 million, or 27.7%, in the year ended December 31, 2025 compared to 2024, as a result of continued growth in initial and renewal support contracts as our customer installed base has continued to expand.
Fiscal 2025 Business Highlights / service revenue and support renewals · Filed 16/04/2026
Customers, especially our large customers, often view the purchase of our products as a significant and strategic decision and require considerable time to evaluate, test and qualify our products prior to making a purchase decision and placing an order.
Risk Factors / customer evaluation and qualification · Filed 13/02/2024
•are based on advanced open and standards-based technology that avoids what is often expensive vendor lock-in, and
Business / differentiation / open standards and vendor lock-in · Filed 17/02/2026
EOS is packaged as a perpetual license on Arista hardware platforms, virtualized EOS (vEOS) and CloudEOS for production or simulations use cases with flexible platform support including third-party hardware.
Business / EOS licensing and third-party hardware · Filed 19/02/2025
Moreover, because our sales are based primarily on purchase orders, some of our customers have previously and could continue to cancel, delay, reduce or otherwise modify their purchase commitments with little or no notice to us.
Risk Factors / Customers and Sales / actual purchase commitment modifications · Filed 05/08/2026
goods; •changes in our pricing policies, whether initiated by us or as a result of competition; •the amount and timing of operating costs and capital expenditures related to the operation and expansion of our business such as those expenses related to construction of a new building in Santa Clara, California; •difficulty forecasting, budgeting and planning due to limited visibility into the spending plans of current or prospective customers; •excess or obsolete inventory resulting in write-downs and charges related to supplier liabilities; •the actual or rumored timing and success of new product and service introductions by us or our competitors or any other change in the competitive landscape of our industry, including consolidation among our competitors or customers; •our ability to successfully expand our business domestically and internationally; •our ability to increase the size and production of our sales or distribution channel, or any disruption in, or termination of, our sales or distribution channels; •decisions by potential customers to purchase our networking solutions from larger, more established vendors, white box vendors with open-source network operating systems or their primary network equipment vendors; •insolvency or credit difficulties confronting our customers, which could adversely affect their ability to purchase or pay for our products and services, or confronting our key suppliers, including our sole source suppliers, which could disrupt our supply chain; •cyclical fluctuations in our markets; and 29 Table of Contents •other risk factors described in this filing.
Risk Factors / operating variability and competing vendor categories · Filed 05/08/2026
We expect our gross margins to vary over time and the gross margins we have achieved in recent years may not be sustainable and may be adversely affected in the future by numerous factors, including but not limited to pricing pressure on our products and services due to competition, the ability of more fully integrated competitors to bundle their networking products with other products, or utilize proprietary silicon in their products, the mix of sales to large customers who generally receive lower pricing, the mix of products sold, manufacturing-related costs, including costs associated with sourcing key components from sole or limited suppliers and potential changes to our manufacturing and supply chain to respond to international trade tensions, supply chain sourcing activities, merchant silicon costs, excess/obsolete inventory and supplier liability charges, and fees to expedite supplier components and costs related to tariffs from our products that are manufactured internationally.
Risk Factors / gross margins / large-customer pricing and competitive pressure · Filed 05/08/2026
Twelve Months Ended December 31, 2025 2024 GAAP gross profit $ 5,768.7 $ 4,491.3 GAAP gross margin 64.1% 64.1% Stock-based compensation expense 26.9 15.8 Intangible asset amortization 19.8 16.8 Non-GAAP gross profit $ 5,815.4 $ 4,523.9 Non-GAAP gross margin 64.6% 64.6% GAAP income from operations $ 3,856.1 $ 2,944.6 GAAP operating margin 42.8% 42.0% Stock-based compensation expense 439.2 355.4 Intangible asset amortization 41.7 26.8 Non-GAAP income from operations $ 4,337.0 $ 3,326.8 Non-GAAP operating margin 48.2% 47.5% NON-GAAP EXECUTIVE INCENTIVE PLAN (“INCENTIVE PLAN”) PERFORMANCE METRICS IN COMPENSATION DISCUSSION AND ANALYSIS We use certain non-GAAP financial performance metrics in our Incentive Plan, as described on pages 58 and 64.
Appendix A / 2025 and 2024 GAAP margin reconciliation · Filed 16/04/2026
(Unaudited, in millions, except percentages and per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
GAAP gross profit
$
1,910.3
$
1,438.6
$
3,587.1
$
2,714.7
GAAP gross margin
62.9
%
65.2
%
62.4
%
64.5
%
Stock-based compensation expense
7.4
5.8
14.4
11.3
Intangible asset amortization
7.0
2.6
14.0
5.8
Non-GAAP gross profit
$
1,924.7
$
1,447.0
$
3,615.5
$
2,731.8
Non-GAAP gross margin
63.4
%
65.6
%
62.9
%
64.9
%
GAAP income from operations
$
1,378.0
$
986.2
$
2,535.8
$
1,845.0
GAAP operating margin
45.4
%
44.7
%
44.1
%
43.8
%
Stock-based compensation expense
120.4
85.2
241.3
178.2
Intangible asset amortization
15.3
5.0
30.6
10.6
Non-GAAP income from operations
$
1,513.7
$
1,076.4
$
2,807.7
$
2,033.8
Non-GAAP operating margin
49.9
%
48.8
%
48.9
%
48.3
%
GAAP net income
$
1,212.9
$
888.8
$
2,235.8
$
1,702.6
Stock-based compensation expense
120.4
85.2
241.3
178.2
Intangible asset amortization
15.3
5.0
30.6
10.6
(Gains)/losses on strategic investments
(6.0)
(5.4)
(8.8)
(10.9)
Tax benefits on stock-based awards(1)
(30.9)
(32.1)
(65.3)
(80.1)
Income tax effect on non-GAAP exclusions(1)
(10.0)
(7.3)
(23.7)
(20.3)
Non-GAAP net income(1)
$
1,301.7
$
934.2
$
2,409.9
$
1,780.1
GAAP diluted net income per share
$
0.95
$
0.70
$
1.75
$
1.34
Non-GAAP adjustments to net income per share(1)
0.07
0.03
0.14
0.06
Non-GAAP diluted net income per share(1)
$
1.02
$
0.73
$
1.89
$
1.40
Weighted-average shares used in computing diluted net income per share
1,276.0
1,271.2
1,274.9
1,275.2
Summary of Stock-Based Compensation Expense:
Cost of revenue
$
7.4
$
5.8
$
14.4
$
11.3
Research and development
70.1
53.2
142.3
110.2
Sales and marketing
32.2
18.8
62.0
38.7
General and administrative
10.7
7.4
22.6
18.0
Total
$
120.4
$
85.2
$
241.3
$
178.2
(1) Prior period amounts have been updated to conform to the current period presentation to reflect the change in methodology for calculating non-GAAP income taxes associated with stock-based awards.
Financial tables / second-quarter and first-half 2026 GAAP margins · Filed 04/08/2026
(Unaudited, in millions, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue:
Product
$
2,605.2
$
1,877.0
$
4,916.5
$
3,569.5
Service
430.5
327.8
828.2
640.1
Total revenue
3,035.7
2,204.8
5,744.7
4,209.6
Cost of revenue:
Product
1,047.5
707.3
2,009.4
1,380.0
Service
77.9
58.9
148.2
114.9
Total cost of revenue
1,125.4
766.2
2,157.6
1,494.9
Gross profit
1,910.3
1,438.6
Reconciliation of Selected GAAP to Non-GAAP Financial Measures
Condensed Consolidated Income Statements / product and service revenue · Filed 04/08/2026
A summary of the stock repurchase activities for the years ended December 31, 2025 and 2024 is as follows (in millions, except per share amounts): Year Ended December 31, 2025 2024 Aggregate purchase price(1) $ 1,603.1 $ 423.6 Shares repurchased 15.9 5.5 Average price paid per share(1) $ 100.63 $ 77.13 (1) Aggregate purchase price and average price paid per share for the year of 2025 include costs associated with the repurchases but exclude the 1% excise tax accrued on our share repurchases as a result of the Inflation Reduction Act of 2022.
Note 6 / actual 2025 and 2024 stock repurchases · Filed 17/02/2026
Condensed Consolidated Balance Sheets (In millions, except par value) June 30, 2026 December 31, 2025 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,290.2 $ 1,963.9 Marketable securities 11,053.1 8,779.1 Accounts receivable, net 2,266.2 1,886.9 Inventories 2,535.3 2,247.1 Prepaid expenses and other current assets 2,018.6 1,510.0 Total current assets 20,163.4 16,387.0 Property and equipment, net 312.5 203.1 Goodwill 416.1 416.1 Deferred tax assets 2,001.6 1,773.6 Other assets 826.5 668.8 TOTAL ASSETS $ 23,720.1 $ 19,448.6 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 692.7 $ 651.7 Accrued liabilities 486.6 475.4 Deferred revenue 5,100.7 4,002.6 Other current liabilities 538.4 246.8 Total current liabilities 6,818.4 5,376.5 Deferred revenue, non-current 1,765.2 1,369.8 Other long-term liabilities 338.8 331.8 TOTAL LIABILITIES 8,922.4 7,078.1 Commitments and Contingencies (Note 5) STOCKHOLDERS’ EQUITY: Preferred stock, $0.0001 par value—100 shares authorized and no shares issued and outstanding as of June 30, 2026 and December 31, 2025 — — Common stock, $0.0001 par value—4,000 shares authorized as of June 30, 2026 and December 31, 2025; 1,261.2 and 1,256.5 shares issued and outstanding as of June 30, 2026 and December 31, 2025 0.1 0.1 Additional paid-in capital 3,155.3 2,911.8 Retained earnings 11,682.8 9,446.6 Accumulated other comprehensive income (loss) (40.5) 12.0 TOTAL STOCKHOLDERS’ EQUITY 14,797.7 12,370.5 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 23,720.1 $ 19,448.6 The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited).
Condensed Consolidated Balance Sheets / liquidity, inventory and outstanding shares · Filed 05/08/2026
As of June 30, 2026, we had non-cancellable purchase commitments not recorded on our balance sheet of $9.7 billion, of which $9.4 billion have expected receipt dates within 12 months, and $0.3 billion have expected receipt dates greater than 12 months.
Note 5 / non-cancellable purchase commitments at June 30, 2026 · Filed 05/08/2026
As of December 31, 2025, we had non-cancellable purchase commitments not recorded on our balance sheet of $6.8 billion, of which $6.3 billion have confirmed receipt dates within 12 months, and $0.5 billion have confirmed receipt dates greater than 12 months.
Purchase Obligations / non-cancellable commitments at December 31, 2025 · Filed 17/02/2026
During the six months ended June 30, 2026, cash provided by operating activities was $2.8 billion, consisting of net income of $2.2 billion, a net decrease of $476.4 million in working capital requirements, and favorable non-cash adjustments to net income of $64.3 million.
Liquidity and Capital Resources / first-half 2026 operating cash generation · Filed 05/08/2026
The reduction in working capital requirements primarily consisted of an increase in deferred revenue of $1.5 billion primarily resulting from an increase in product deferred revenue related to customer contracts with acceptance terms and an increase in customer PCS contracts, and a $198.4 million increase in income tax payables related to timing of payments.
Liquidity and Capital Resources / deferred revenue and tax payment timing · Filed 05/08/2026
• Also, in line with this philosophy, in 2025 we awarded performance-vesting equity in two tranches, first in February 2025 and later in October 2025.
Stockholder Engagement / actual 2025 performance-vesting equity awards · Filed 16/04/2026
Stock Ownership Guidelines. To align the long-term interests of our CEO, CFO, and Presidents with those of our stockholders, these executives are required to own specified minimum levels of Company stock.
Executive Compensation / stock ownership requirements · Filed 16/04/2026
Duda in 2024 in light of the negative advisory recommendations of Glass Lewis and ISS, which were focused on this grant.
Stockholder Engagement / negative advisory recommendations concerning compensation grant · Filed 16/04/2026
Twelve Months Ended December 31, 2025 2024 GAAP gross profit $ 5,768.7 $ 4,491.3 GAAP gross margin 64.1% 64.1% Stock-based compensation expense 26.9 15.8 Intangible asset amortization 19.8 16.8 Non-GAAP gross profit $ 5,815.4 $ 4,523.9 Non-GAAP gross margin 64.6% 64.6% GAAP income from operations $ 3,856.1 $ 2,944.6 GAAP operating margin 42.8% 42.0% Stock-based compensation expense 439.2 355.4 Intangible asset amortization 41.7 26.8 Non-GAAP income from operations $ 4,337.0 $ 3,326.8 Non-GAAP operating margin 48.2% 47.5% NON-GAAP EXECUTIVE INCENTIVE PLAN (“INCENTIVE PLAN”) PERFORMANCE METRICS IN COMPENSATION DISCUSSION AND ANALYSIS We use certain non-GAAP financial performance metrics in our Incentive Plan, as described on pages 58 and 64.
Appendix A / stock compensation exclusions and incentive-plan metrics · Filed 16/04/2026
The following table represents revenue based on customers’ shipping addresses (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Americas(1) $ 2,337.9 $ 1,724.1 $ 4,628.0 $ 3,322.6 Europe, Middle East and Africa 438.2 281.6 673.2 456.2 Asia-Pacific 259.6 199.1 443.5 430.8 Total revenue $ 3,035.7 $ 2,204.8 $ 5,744.7 $ 4,209.6 (1) Includes $2,319.6 million and $1,712.1 million revenue generated from the U.S.
Segment Information / first-half 2026 and 2025 revenue · Filed 05/08/2026
BOARD EVALUATION PROCESS HOW RESULTS ARE USED: 1 Evaluation process discussed at Nominating and Corporate Governance Committee meeting By the board of directors, to identify skills or expertise that may be used as criteria when the board of directors considers new board candidates By the board of directors, to identify strengths and areas of opportunity of each board member and to provide insight into how each board member can be most valuable to Arista By the board of directors, to improve their agenda topics so that the information they receive enables them to effectively address the issues they consider most critical By the Nominating and Corporate Governance Committee, as part of its annual review of each director’s performance when considering whether to nominate the director for re-election to the board of directors 2 Each board member assesses performance and effectiveness of the board of directors, and as applicable, the committees 3 Board members meet one-on-one with outside counsel to discuss their assessments and to provide feedback 4 Outside counsel shares feedback received with the General Counsel, Nominating and Corporate Governance Committee and the full board 5 The full board reviews and develops plans to take actions based on the results, as appropriate 26 Table of Contents Board of Directors Meetings and Committees During our fiscal year ended December 31, 2025, each director attended at least 75% of the aggregate of (i) the total number of meetings of our board of directors held during the period for which he or she has been a director and (ii) the total number of meetings held by all committees of our board of directors on which he or she served during the periods that he or she served.
Board Evaluation Process and Meetings / actual director attendance · Filed 16/04/2026
2026 PROXY STATEMENT 27 Table of Contents KEY RESPONSIBILITIES • Providing oversight of our accounting and financial reporting processes and the audit of our financial statements • Assisting our board of directors in oversight of (i) the audit and integrity of our financial statements, (ii) our compliance with legal and regulatory requirements, (iii) the independent auditor’s qualifications, independence, and performance, (iv) our accounting and financial reporting process and internal controls, and (v) the organization and performance of our internal audit function • Providing to our board of directors such information and materials as it may deem necessary to make our board of directors aware of significant financial matters that require the attention of our board of directors • Preparing the report required by the SEC rules to be included in our proxy statement for the annual meeting of stockholders • Reviewing and discussing with management, including our internal audit function, if applicable, and our independent auditor guidelines and policies to identify, monitor, and address enterprises risks, including our investment policies • Reviewing and discussing with management the adequacy and monitoring of our compliance programs with respect to legal, ethical, and regulatory requirements, including our Code of Ethics and Business Conduct, compliance with anti-bribery and anti-corruption laws, and compliance with export laws • Reviewing periodic reports from management on our internal compliance policies and procedures • Reviewing and discussing with management our policies and practices relating to environmental and social responsibility matters • Reviewing and discussing with management risks to significant cybersecurity matters and concerns involving the Company, including information security, data privacy, backup of information systems and related regulatory matters and compliance • Reviewing the results of the independent audit and quarterly reviews, and the independent auditor’s opinion on the audited financial statements INDEPENDENCE/QUALIFICATIONS: • All committee members are independent under the NYSE listing standards and the heightened independence requirements applicable to Audit Committee members under SEC rules • All current committee members are financially literate in accordance with NYSE listing standards.
Board Committees / audit committee responsibilities and independence · Filed 16/04/2026
GAAP. The effectiveness of our internal control over financial reporting, as of December 31, 2025, has been audited by Ernst & Young LLP, the independent registered public accounting firm that audits our Consolidated Financial Statements, as stated in their report included in Item 8 of this Annual Report on Form 10-K, which expresses an unqualified opinion on the effectiveness of our internal control over financial reporting as of December 31, 2025.
Controls and Procedures / reported independent internal-control audit opinion · Filed 17/02/2026
Our chief operating decision maker ("CODM") is our Chief Executive Officer and Chairperson of the Board, who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.
Segment Information / combined CEO and board chair roles · Filed 05/08/2026
We believe Scale Up represents a future incremental opportunity as the market shifts toward open standards like Ethernet for Scale Up Networks (ESUN).
Business / AI networking / future scale-up opportunity · Filed 17/02/2026
•Arista received a 2026 NPS Score of 89 – The updated net promoter score indicates that 94% of customers are strongly positive about the company.
Company Highlights / issuer-reported customer net promoter score · Filed 05/05/2026
We did not repurchase any shares during the six months ended June 30, 2026.
Note 6 / absence of first-half 2026 stock repurchases · Filed 05/08/2026
In particular, we have experienced and could continue to experience price-focused competition from competitors in Asia, especially from China.
Risk Factors / experienced price-focused competition · Filed 17/02/2026
