What happened
Arista Networks (ANET) sells high-speed data-center network switches and software and trades as a direct beneficiary of AI infrastructure build-outs.
ANETArista Networks·2026Q2 10-QPaidFiling score 54 · Moderate
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Arista is holding $6,865.9m it has not yet booked as revenue — 2.3 quarters of sales
Q2 2026 10-Q: revenue $3,035.7m (+38%). Deferred revenue at June 30 stood at $6,865.9m against $4,061.7m a year earlier, and the quarter added more in new deferrals than it recognized from the opening balance
Arista Networks (ANET) reported second-quarter 2026 revenue of $3,035.7m, up 38% from a year earlier, and net income of $1.21bn. The line that grew faster than revenue in the 10-Q filed on August 5 is on the other side of the balance sheet: deferred revenue — money not yet recognized as sales — stood at $6,865.9m at June 30.
In plain terms
Arista is sitting on $6,865.9m that customers have paid or been billed for but that cannot yet be booked as revenue — 2.3 times a quarter's sales, up 69% in a year. Most of it is multi-year support contracts and products that count as revenue only once the customer accepts them. It will become revenue, but the timing depends on acceptance and installation, which is why the queue is growing faster than reported sales.
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54 Filing score · Moderate
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FAQ
Is rising deferred revenue a good sign?
The 10-Q states what it consists of — unearned multi-year support and product deferrals on contracts with acceptance clauses — and gives the balance and the quarter's movements. It is future revenue, but the timing depends on contract terms. This article reports the balance and the pace; the criteria for judging them are in the subscriber section.
Why did operating cash flow fall?
Quarterly operating cash flow was $1.08bn against $1.69bn in the prior quarter.
Why are inventory and deposits up?
Inventory was $2.54bn at June 30, and deposits placed with contract manufacturers to secure purchase commitments were $124.4m against $53.0m at the end of last year.
Where can I verify these numbers?
On SEC EDGAR: the Q2 2026 Form 10-Q (accession 0001596532-26-000175) — 'Deferred revenue' (current and non-current) on the balance sheet, the deferred-revenue rollforward and remaining-performance-obligations paragraphs in the contract-liabilities note, the cash-flow statement, and the customer-concentration and payment-terms risk factors.
How aiSwingX™ wrote this
- We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
- Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
- An editor reviews before publication; any later change is recorded in the revision history.
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Arista Networks Form 10-Q for Q2 2026 (as of June 30): balance sheet (current and non-current deferred revenue, receivables, inventory), the deferred-revenue rollforward and remaining-performance-obligations paragraphs in the contract-liabilities note, cash-flow statement, the customer-concentration and payment-terms risk factors, and MD&A · SEC EDGAR · This article is not investment advice. Disclaimer