ANET — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-05

• Gross margin, or gross profit as a percentage of revenue, has been and will continue to be affected by a variety of factors, including pricing pressure on our products and services due to competition, the mix of sales to large customers who generally receive lower pricing, the mix of products sold, …

• Gross margin decreased to 62.9% and 62.4% for the three and six months ended June 30, 2026, compared to 65.2% and 64.5% for the same periods in 2025. The decrease was primarily driven by an increased proportion of our sales to large end customers who generally receive higher discounts.

• and reduce overall lead times, which will increase our working capital requirements in the future. We regularly review our liquidity and funding sources to support our long-term growth and capital needs.

• Net increase (decrease) in cash, cash equivalents and restricted cash$326.3 $(536.9)

• 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. The reduction in working c…

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• Gross margin, or gross profit as a percentage of revenue, has been and will continue to be affected by a variety of factors, including pricing pressure on our products and services due to competition, the mix of sales to large customers who

• generally receive lower pricing, the mix of products sold, manufacturing-related costs, including costs associated with our manufacturing operations personnel, inflationary pressure and scarcity of materials in our supply chain, merchant silicon costs, and excess/obsolete inventory and supplier liab…

• Gross margin decreased from 63.7% to 61.9% for the three months ended March 31, 2026, compared to the same period in 2025. The decrease was primarily driven by an increased proportion of our sales to large end customers who generally receive higher discounts.

• Net increase (decrease) in cash, cash equivalents and restricted cash$825.6 $(917.3)

• During the three months ended March 31, 2026, cash provided by operating activities was $1.7 billion, consisting of net income of $1.0 billion, a net decrease of $634.7 million in working capital requirements, and non-cash adjustments to net income of $35.9 million. The decrease in working capital r…

Text added vs the prior filing · source: 10-Q · 2026-08-05

• •Supply chain constraints and inventory imbalances could adversely affect our revenue and gross margins;

• Our business depends on the overall demand for information technology, network connectivity and access to data and applications. Weak domestic or global economic conditions and continuing economic uncertainty, fear or anticipation of such conditions, a recession, geopolitical pressures, including in…

• economies and in global financial markets. In addition, a government shutdown or a default by the U.S. government on its debt obligations, or related credit-rating downgrades could also have adverse effects on the broader global economy and contribute to, or worsen, an economic recession.

• 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 m…

• heightened. We determine our operating expenses largely on the basis of anticipated revenue and a high percentage of our expenses are fixed in the short and medium term. As a result, a failure or delay in generating or recognizing revenue could cause significant variations in our operating results a…

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• •key component supply chain constraints and inventory management;

• In February 2026, the U.S. Supreme Court held that the tariffs imposed under IEEPA were invalid. Subsequently, in April 2026, Customs and Border Protection ("CBP") launched the Consolidated Administration and Processing of Entries ("CAPE") system to allow parties who paid tariffs under IEEPA to subm…

• Our business depends on the overall demand for information technology, network connectivity and access to data and applications. Weak domestic or global economic conditions and continuing economic uncertainty, fear or anticipation of such conditions, a recession, geopolitical pressures, including in…

• performance, condition or prospects of our customers, could adversely affect our business, financial condition, results of operations and prospects in a number of ways, including longer sales cycles, reduced demand or lower prices for our products and services, higher default rates among our channel…

• 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 m…

Text added vs the prior filing · source: 10-Q · 2026-08-05

• On June 2, 2026, Chantelle Breithaupt, our Senior Vice President and Chief Financial Officer, modified her Rule 10b5-1 trading arrangement previously adopted on December 11, 2025, providing for the sale from time to time of a number of

• shares of our common stock that may be earned in connection with grants of performance-based restricted stock units, which cannot be determined at this time. The duration of the trading arrangement is until December 31, 2026, or earlier if all transactions under the trading arrangement are completed…

• On June 9, 2026, Mark Templeton, a member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 50,000 shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c)…

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• On March 13, 2026, Kenneth Duda, our President, Chief Technology Officer and Director, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 520,000 shares of our common stock held in various trusts for the benefit of Mr. Duda’s family, for which…