Arista Networks, Inc. stock research
FY2026 Q1
Arista Networks (ANET) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin weakened sequentially and year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin weakened sequentially and year-over-year.
- The primary driver of the gross margin change was the relationship between revenue and cost of revenue: revenue grew, but cost of revenue increased at a faster rate, reducing the margin.
- Relative to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.9%
Gross profit
$1.7B
Revenue
$2.7B
Cost of revenue
$1.0B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-1.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $2.2B | $1.4B | $766.2M | 65.2% |
| Sep 30, 2025 | $2.3B | $1.5B | $818.1M | 64.6% |
| Dec 31, 2025 | $2.5B | $1.6B | $924.0M | 62.9% |
| Mar 31, 2026 | $2.7B | $1.7B | $1.0B | 61.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-1.0 pts
Year-over-year change
Mar 31, 2025
-1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin change was the relationship between revenue and cost of revenue: revenue grew, but cost of revenue increased at a faster rate, reducing the margin.
Relative to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was lower.
Monitor the trend in inventories, which increased from the prior quarter end.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Arista Networks, Inc. (ANET) | 61.9% |