Arista is holding $6,865.9m it has not yet booked as revenue — 2.3 times a quarter's sales and up 69% in a year, with $1,703.2m newly deferred in this quarter alone
Q2 2026 10-Q: revenue $3,035.7m (+38%), operating income $1.38bn, net income $1.21bn. Deferred revenue at June 30 was $6,865.9m ($5,100.7m current plus $1,765.2m non-current) against $4,061.7m a year earlier. The quarter added $1,703.2m of new deferrals while recognizing $1,036.0m from the opening balance. Total future revenue including other performance obligations is $8.4bn, about 91% of it in future periods; receivables $2,266.2m and inventory $2.54bn
aiSwingX™ Editorial · Reviewed
Published
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
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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.
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.
Its quarterly report (10-Q) for Q2 2026 shows revenue of $3,035.7m, up 38% from $2,204.8m a year earlier, with gross profit of $1.91bn, operating income of $1.38bn and net income of $1.21bn. First-half revenue was $5,744.7m against $4,209.6m.
The line that grew faster sits on the liability side. Deferred revenue at June 30 was $5,100.7m current plus $1,765.2m non-current — $6,865.9m in total, against $4,061.7m a year earlier. That is 69% growth while revenue grew 38%.
We find the numbers that are in the filing but not in the news, and analyze what they mean, how big they are and what to watch next quarter — with the arithmetic and quarterly metrics. Cancel any time.
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. For the first half it was $2,776.5m ($1,841.8m a year earlier), with deferred revenue contributing +$1,493.5m while receivables (−$379.3m), inventories (−$288.2m) and other assets (−$619.7m) absorbed cash.
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. The company outsources most manufacturing and supply-chain management to third-party contract manufacturers.
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.
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
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aiSwingX™ analyzes US filings and reports them as news investors can read.
