Arista Networks shared some good news about its earnings and future directions during its second-quarter as the central nervous system for infrastructure from the client to campus to data and AI centers,” Ullal said. “Our AI fabrics momentum with Etherlink switches now exceeds 100 cumulative customers from the initial four to five customers I spoke of in 2024.”
Ullal said the company is seeing growth in all sectors—from back-end AI fabrics to the core data-center front end, to adjacent campus and routing businesses. The scale-across switching and routing market is forecast to hit between $15 billion and $20 billion by 2030, for example, positioning Arista well for growth, Ullal said.
“We are now projecting 40% annual growth, which is an incremental $2.1 billion over our 2025 Analyst Day goal of $10.5 billion, and an incremental $1.1 billion over our recent projections of $11.5 billion in May of 2026,” Ullal said.
So what exactly is working? Arista highlighted a number of areas.
Supply chain pressures beginning to ease
Just last quarter, Arista said supply-chain pressures on networking components—memory, chips, and wafers—were leading to .
With a lot of work, some of that pressure has eased, reported , president and CTO of Arista. He highlighted three technologies, all of which are part of the vendor’s EOS operating system, that are helping to drive and differentiate Arista gear: Smart System Upgrade (SSU), Multipath Reliable Connection (MRC), and Segment Routing (SRV6).
“SSU is the ability to upgrade switch software without any disruption. Frequent upgrades are a hard reality today, especially as AI both uncovers security vulnerabilities and creates tools to exploit them,” Duda said. “While many competing systems require a full reboot to address these issues, leading to expensive and disruptive downtime, Arista EOS handles these upgrades seamlessly.”
In order to maximize xPU utilization, customers need MRC, because in first-generation AI networks, every packet on an XPU-to-XPU flow has to take the same path. “That means if two flows hash to the same length, they both run at half speed. MRC enables senders to spray a single flow across many paths through the fabric, where receivers reassemble any data that arrives out of order, eliminating the performance hit from fabric cache collisions,” Duda said.
But how is the sender supposed to control which paths deploy or use? That’s where SRV6 comes in. “It’s not new, but using it to , a form factor designed specifically for optics at high speed and assembled over 100 optics module suppliers as part of a multi-source agreement to build and support XPO.
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