ARISTA NETWORKS, INC., 10-K filed on 2/17/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2025
Feb. 10, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-36468    
Entity Registrant Name ARISTA NETWORKS, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 20-1751121    
Entity Address, Address Line One 5453 Great America Parkway    
Entity Address, City or Town Santa Clara    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 95054    
City Area Code 408    
Local Phone Number 547-5500    
Title of 12(b) Security Common Stock, $0.0001 par value    
Trading Symbol ANET    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 105.6
Entity Common Stock, Shares Outstanding   1,256,537,906  
Documents Incorporated by Reference
Portions of the registrant’s definitive Proxy Statement relating to its 2026 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A within 120 days after the registrant’s fiscal year end of December 31, 2025 are incorporated by reference into Part III of this Annual Report on Form 10-K.
   
Entity Central Index Key 0001596532    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.4
Audit Information
12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location San Jose, California
Auditor Firm ID 42
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
CURRENT ASSETS:    
Cash and cash equivalents $ 1,963.9 $ 2,762.4
Marketable securities 8,779.1 5,541.1
Accounts receivable, net 1,886.9 1,140.5
Inventories 2,247.1 1,834.6
Prepaid expenses and other current assets 1,510.0 632.3
Total current assets 16,387.0 11,910.9
Property and equipment, net 203.1 98.8
Goodwill 416.1 268.5
Deferred tax assets 1,773.6 1,440.4
Other assets 668.8 325.3
TOTAL ASSETS 19,448.6 14,043.9
CURRENT LIABILITIES:    
Accounts payable 651.7 381.1
Accrued liabilities 475.4 435.3
Deferred revenue 4,002.6 1,727.3
Other current liabilities 246.8 188.5
Total current liabilities 5,376.5 2,732.2
Deferred revenue, non-current 1,369.8 1,064.1
Other long-term liabilities 331.8 252.8
TOTAL LIABILITIES 7,078.1 4,049.1
Commitments and contingencies (Note 5)
STOCKHOLDERS’ EQUITY:    
Preferred stock, $0.0001 par value—100 shares authorized and no shares issued and outstanding as of December 31, 2025 and 2024 0.0 0.0
Common stock, $0.0001 par value—4,000 shares authorized as of December 31, 2025 and 2024; 1,256.5 and 1,261.3 shares issued and outstanding as of December 31, 2025 and 2024 0.1 0.1
Additional paid-in capital 2,911.8 2,465.4
Retained earnings 9,446.6 7,542.5
Accumulated other comprehensive income (loss) 12.0 (13.2)
TOTAL STOCKHOLDERS’ EQUITY 12,370.5 9,994.8
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 19,448.6 $ 14,043.9
v3.25.4
Consolidated Balance Sheets (Parenthetical)
Dec. 31, 2025
$ / shares
shares
Dec. 31, 2024
$ / shares
shares
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) | $ / shares $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) | $ / shares $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 4,000,000,000 4,000,000,000
Common stock, shares issued (in shares) 1,256,500,000 1,261,300,000
Common stock, shares outstanding (in shares) 1,256,500,000 1,261,300,000
v3.25.4
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue:      
Total revenue $ 9,005.7 $ 7,003.1 $ 5,860.2
Cost of revenue:      
Total cost of revenue 3,237.0 2,511.8 2,229.9
Gross profit 5,768.7 4,491.3 3,630.3
Operating expenses:      
Research and development 1,237.3 996.7 854.9
Sales and marketing 533.4 427.3 399.0
General and administrative 141.9 122.7 119.1
Total operating expenses 1,912.6 1,546.7 1,373.0
Income from operations 3,856.1 2,944.6 2,257.3
Other income, net 393.6 320.5 164.7
Income before income taxes 4,249.7 3,265.1 2,422.0
Provision for income taxes 738.3 413.0 334.7
Net income $ 3,511.4 $ 2,852.1 $ 2,087.3
Earnings per share:      
Basic (in dollars per share) $ 2.79 $ 2.27 $ 1.69
Diluted (in dollars per share) $ 2.75 $ 2.23 $ 1.65
Weighted-average common shares outstanding:      
Basic (in shares) 1,258.0 1,256.3 1,237.4
Diluted (in shares) 1,275.7 1,281.1 1,268.5
Product      
Revenue:      
Total revenue $ 7,576.9 $ 5,884.0 $ 5,029.5
Cost of revenue:      
Total cost of revenue 2,978.7 2,299.0 2,061.2
Service      
Revenue:      
Total revenue 1,428.8 1,119.1 830.7
Cost of revenue:      
Total cost of revenue $ 258.3 $ 212.8 $ 168.7
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 3,511.4 $ 2,852.1 $ 2,087.3
Other comprehensive income (loss), net of tax:      
Foreign currency translation adjustments 1.6 (4.2) 0.9
Available-for-sale investments:      
Changes in net unrealized gains (losses) on available-for-sale securities 23.8 (5.7) 25.9
Less: reclassification adjustment for net (gains) losses included in net income (0.2) 0.0 3.8
Other comprehensive income (loss) 25.2 (9.9) 30.6
Comprehensive income $ 3,536.6 $ 2,842.2 $ 2,117.9
v3.25.4
Consolidated Statements of Stockholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock  
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2022   1,227.6      
Beginning balance at Dec. 31, 2022 $ 4,885.8 $ 0.1 $ 1,780.6 $ 3,139.0 $ (33.9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 2,087.3     2,087.3  
Other comprehensive income (loss), net of tax 30.6       30.6
Stock-based compensation 296.8   296.8    
Issuance of common stock in connection with employee equity incentive plans (in shares)   25.9      
Issuance of common stock in connection with employee equity incentive plans 62.1   62.1    
Repurchase of common stock (in shares)   (3.8)      
Repurchase of common stock (112.3)     (112.3)  
Tax withholding paid for net share settlement of equity awards (in shares)   (0.8)      
Tax withholding paid for net share settlement of equity awards (33.6)   (33.6)    
Common stock issued for business acquisition (in shares)   0.1      
Common stock issued for business acquisition 2.3   2.3    
Ending balance (in shares) at Dec. 31, 2023   1,249.0      
Ending balance at Dec. 31, 2023 7,219.0 $ 0.1 2,108.2 5,114.0 (3.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 2,852.1     2,852.1  
Other comprehensive income (loss), net of tax (9.9)       (9.9)
Stock-based compensation 355.4   355.4    
Issuance of common stock in connection with employee equity incentive plans (in shares)   18.6      
Issuance of common stock in connection with employee equity incentive plans $ 60.2   60.2    
Repurchase of common stock (in shares) (5.5) (5.5)      
Repurchase of common stock $ (423.6)     (423.6)  
Tax withholding paid for net share settlement of equity awards (in shares)   (0.8)      
Tax withholding paid for net share settlement of equity awards $ (58.4)   (58.4)    
Ending balance (in shares) at Dec. 31, 2024 1,261.3 1,261.3      
Ending balance at Dec. 31, 2024 $ 9,994.8 $ 0.1 2,465.4 7,542.5 (13.2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 3,511.4     3,511.4  
Other comprehensive income (loss), net of tax 25.2       25.2
Stock-based compensation 439.2   439.2    
Issuance of common stock in connection with employee equity incentive plans (in shares)   11.6      
Issuance of common stock in connection with employee equity incentive plans $ 57.7   57.7    
Repurchase of common stock (in shares) (15.9) (15.9)      
Repurchase of common stock $ (1,607.3)     (1,607.3)  
Tax withholding paid for net share settlement of equity awards (in shares)   (0.5)      
Tax withholding paid for net share settlement of equity awards $ (50.5)   (50.5)    
Ending balance (in shares) at Dec. 31, 2025 1,256.5 1,256.5      
Ending balance at Dec. 31, 2025 $ 12,370.5 $ 0.1 $ 2,911.8 $ 9,446.6 $ 12.0
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income $ 3,511.4 $ 2,852.1 $ 2,087.3
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 72.6 62.0 70.6
Stock-based compensation 439.2 355.4 296.8
Deferred income taxes (312.0) (492.9) (370.8)
Other (27.1) (53.6) (34.0)
Changes in operating assets and liabilities:      
Accounts receivable, net (746.4) (106.1) (105.9)
Inventories (412.5) 110.6 (655.5)
Other assets (937.4) (234.2) (66.4)
Accounts payable 260.5 (51.6) 198.6
Other liabilities 119.4 47.8 128.1
Deferred revenue 2,452.0 1,285.2 465.0
Income taxes, net (47.8) (66.5) 20.2
Net cash provided by operating activities 4,371.9 3,708.2 2,034.0
CASH FLOWS FROM INVESTING ACTIVITIES:      
Proceeds from maturities of marketable securities 3,432.5 2,058.6 1,887.9
Proceeds from sale of marketable securities 144.3 48.8 67.3
Purchases of marketable securities (6,748.4) (4,526.1) (2,606.9)
Purchases of property, equipment and intangible assets (119.5) (32.0) (34.4)
Cash paid for business combination, net of cash acquired (300.0) 0.0 1.8
Other 14.9 (6.6) (3.2)
Net cash used in investing activities (3,576.2) (2,457.3) (687.5)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of common stock under equity plans 57.7 60.2 62.1
Tax withholding paid on behalf of employees for net share settlement (50.5) (58.4) (33.6)
Repurchase of common stock (1,603.1) (423.6) (112.3)
Net cash used in financing activities (1,595.9) (421.8) (83.8)
Effect of exchange rate changes 1.7 (4.8) 0.8
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (798.5) 824.3 1,263.5
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period 2,763.8 1,939.5 676.0
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period 1,965.3 2,763.8 1,939.5
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      
Cash paid for income taxes, net of refunds $ 1,095.9 $ 970.6 $ 686.2
v3.25.4
Organization and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Summary of Significant Accounting Policies Organization and Summary of Significant Accounting Policies
Organization
Arista Networks, Inc. (together with our subsidiaries, “we,” “our,” "Arista," "Company" or “us”) is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus and routing environments. Our cloud networking solutions consist of our EOS, a set of network applications and our Ethernet switching and routing platforms. We are incorporated in the state of Delaware. Our corporate headquarters are located in Santa Clara, California, and we have wholly-owned subsidiaries throughout the world, including North America, Europe, Asia and Australia.
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly-owned subsidiaries and are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). All significant intercompany accounts and transactions have been eliminated.
On November 7, 2024, the Company announced a four-for-one forward stock split ("Stock Split") of the Company’s common stock that was effected through the filing of an amendment to the Company's Amended and Restated Certificate of Incorporation ("Amendment") on December 3, 2024. The Stock Split proportionately increased the authorized shares of common stock, and all share and per share amounts presented herein have been retroactively adjusted to reflect the impact of the Stock Split.
Certain reclassifications of prior period amounts were made in the current year to conform to the current period presentation.
Use of Estimates
The preparation of the accompanying consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, but are not limited to, valuation of inventory and contract manufacturer/supplier liabilities, accounting for income taxes, including the recognition of deferred tax assets and liabilities, valuation allowance on deferred tax assets and reserves for uncertain tax positions, revenue recognition and deferred revenue, valuation of goodwill and acquisition-related intangible assets, estimate of useful lives of long-lived assets including intangible assets, and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust these estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from these estimates.
Concentrations of Business and Credit Risk
We work closely with third-party contract manufacturers to manufacture our products. As of December 31, 2025, we had three primary contract manufacturing partners, who provided the vast majority of our electronic manufacturing services. Our contract manufacturing partners deliver our products to our third-party direct fulfillment facilities. We and our fulfillment partners then perform labeling, final configuration, quality assurance testing and shipment to our customers. Our products rely on key components, including certain integrated circuit components and power supplies, some of which our contract manufacturing partners purchase on our behalf from a limited number of suppliers, including certain sole-source providers. In addition, we rely heavily on a single merchant silicon supplier for our switching chips. We generally do not have guaranteed supply contracts with our component suppliers, and our manufacturing partners could delay shipments or cease manufacturing such products or selling them to us at any time. If we are unable to obtain a sufficient quantity of these components on commercially reasonable terms or in a timely manner, or if we are unable to obtain alternative sources for these components, sales of our products could be delayed or halted entirely, or we may be required to redesign our products. Quality or performance failures of our products or changes in our contractors’ or vendors’ financial or business condition could disrupt our ability to supply quality products to our customers. Any of these events could result in lost sales and damage to our end-customer relationships, which would adversely impact our business, financial condition and results of operations.
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. Our cash equivalents and marketable securities are invested in high
quality financial instruments with banks and financial institutions. Such deposits may be in excess of insured limits provided on such deposits.
Our accounts receivable are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk with respect to accounts receivable by performing ongoing credit evaluations of our customers to assess the probability of collection based on a number of factors, including past transaction experience with the customer, evaluation of their credit history, the credit limits extended, review of the invoicing terms of the arrangement, and current economic conditions that may affect a customer’s ability to pay. In situations where a customer may be thinly capitalized and we have limited payment history with it, we will either establish a small credit limit or require it to prepay its purchases. We generally do not require our customers to provide collateral to support accounts receivable. We have recorded an allowance for doubtful accounts for accounts receivables that we have determined to be uncollectible. We mitigate credit risk with respect to accounts receivables by performing ongoing credit evaluations of the borrower to assess the probability of collecting all amounts due to us under the existing contractual terms.
We market and sell our products through both our direct sales force and our channel partners, including distributors, value-added resellers, system integrators and OEM partners, and in conjunction with various technology partners. Significant customers are those that represent more than 10% of our total revenue during the period. There were two end customers who represented more than 10% of our total revenue for the years ended 2025, 2024 and 2023. Sales to one end customer represented 16%, 15% and 21% of our total revenue, and sales to the other end customer represented 26%, 20% and 18% of our total revenue for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, and 2024, our top two resellers accounted for 52% and 50% of total accounts receivable, respectively.
Cash and Cash Equivalents
We consider all highly liquid investments with original or remaining maturities of three months or less at the time of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with various financial institutions and highly liquid investments in money market funds. Interest is accrued as earned.
Marketable Securities
We classify all highly liquid investments in debt securities with maturities of greater than three months at the date of purchase as marketable securities. We have classified and accounted for our marketable debt securities as available-for-sale. We determine the appropriate classification of these investments at the time of purchase and reevaluate such designation at each balance sheet date. After consideration of our risk versus reward objectives, as well as our liquidity requirements, we may hold or sell these securities prior to their stated maturities. As we view these securities as available to support current operations, we classify securities with maturities beyond 12 months as current assets under the caption marketable securities in the accompanying consolidated balance sheets. We carry these securities at fair value. For marketable debt securities, we report the unrealized gains and losses, net of taxes, as a component of stockholders’ equity. We determine any realized gains or losses on the sale of marketable securities using the specific identification method, and record such gains and losses in other income, net in the accompanying consolidated statements of income.
For our debt securities in an unrealized loss position, we determine whether a credit loss exists by considering, among other factors, current market conditions, credit quality of debt issuers, any changes to the rating of the security by a rating agency, and the extent to which fair value is less than cost. We would recognize an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and write down the amortized cost basis of the investment if it is more likely than not we will be required to sell or we intend to sell the investment before recovery of its amortized cost basis.
Accounts Receivable
Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. We estimate our allowance for doubtful accounts based upon the collectability of the receivables in light of historical trends, reasonable and supportable information of our customers' economic conditions that may affect our customers’ ability to pay, and prevailing economic conditions. This evaluation is done in order to identify issues that may impact the collectability of receivables and related estimated required allowance. Revisions to the allowance are recorded as an adjustment to bad debt expense. After appropriate collection efforts are exhausted, specific accounts receivable deemed to be uncollectible are charged against the allowance in the period they are deemed uncollectible. Recoveries of accounts receivable previously written-off are recorded as credits to bad debt expense.
Fair Value Measurements
Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We apply fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. These assets and liabilities include cash and cash equivalents, marketable securities, accounts receivable, accounts payable, and accrued liabilities. Cash equivalents, accounts receivable, accounts payable and accrued liabilities are stated at carrying values in our consolidated financial statements, which approximate their fair value due to the short-term nature of these instruments.
Assets and liabilities recorded at fair value on a recurring basis in the accompanying consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. We use a fair value hierarchy to measure fair value, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The three-tiers of the fair value hierarchy are as follows:
Level I—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;
Level II—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and
Level III—Unobservable inputs that are supported by little or no market data for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
Foreign Currency
The functional currency of our foreign subsidiaries is either the U.S. dollar or their local currency depending on the nature of the subsidiaries’ activities.
Transaction re-measurement - Assets and liabilities denominated in a currency other than a subsidiary’s functional currency are re-measured into the subsidiary's functional currency using exchange rates in effect at the end of the reporting period, with gains and losses recorded in other income, net in the consolidated statements of income. To date, foreign currency transaction gains and losses and exchange rate fluctuations have not been material to our consolidated financial statements.
Translation - Assets and liabilities of subsidiaries denominated in foreign functional currencies are translated into U.S. dollars at the closing exchange rate on the balance sheet date and equity-related balances are translated at historical exchange rates. Revenues, costs and expenses in foreign functional currencies are translated using average exchange rates that approximate those in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income, a separate component of total stockholders’ equity.
Inventory Valuation and Contract Manufacturer/Supplier Liabilities
Inventories primarily consist of finished goods, including evaluation inventory held at customers or partners, and strategic components, primarily integrated circuits. Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Evaluation inventory consists of new products and/or use cases at customer or partner sites for trial purposes. Title to the inventory remains with Arista during the trial period and invoicing occurs only upon completion of the trial period and when/if the products have been accepted by the customer. Manufacturing overhead costs and inbound shipping costs are included in the cost of inventory. We record a provision when inventory is determined to be in excess of anticipated demand, or obsolete, to adjust inventory to its estimated realizable value. For the years ended December 31, 2025, 2024 and 2023, we recorded charges of $131.6 million, $267.2 million and $234.4 million, respectively, within cost of product revenue for inventory write-downs.
Our contract manufacturers procure components and assemble products on our behalf and we procure strategic components from suppliers based on our forecasts. We record a liability and a corresponding charge for non-cancellable, non-returnable purchase commitments with our contract manufacturers and suppliers for quantities in excess of our demand forecasts or that are considered obsolete. For the year ended 2023, we recorded a charge of $113.0 million within cost of product revenue for such liabilities with our contract manufacturers and suppliers. Such charges were not material for the years ended December 31, 2025 and 2024.
We use significant judgment in establishing our forecasts of future demand and obsolete material exposures. These estimates depend on our assessment of current and expected orders from our customers, product development plans and current sales levels. Despite general improvements in the supply environment, fluctuations in supplier lead times and the persistence of some long-lead components require us to maintain elevated inventory levels and purchase commitments. To manage this continued volatility, we maintain extended demand-planning horizons and strategic inventory buffers to ensure continuity of supply and address forecast uncertainty. We expect inventory and purchase commitments to remain volatile due to new product introductions, fluctuating customer demand, and varying supplier lead times. There is, however, no guarantee that all suppliers will meet their commitments in the time frame committed or that actual customer demand will directly match our demand forecasts. If actual market conditions are less favorable than those projected by management, which may be caused by factors within and/or outside of our control, we may be required to increase our inventory write-downs and liabilities to our contract manufacturers and suppliers, which could have an adverse impact on our gross margins and profitability. We regularly evaluate our exposure for inventory write-downs and adequacy of our contract manufacturer and supplier liabilities.
Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation, except for land which is not depreciated. We capitalize any additions and improvements and expense maintenance and repairs as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, generally three years. Our leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the remaining lease term.
Business Combinations
We use the acquisition method to account for our business combinations in accordance with Accounting Standards Codification ("ASC") 805 - Business Combinations. We allocate the total fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the acquired businesses are included in our consolidated financial statements from the date of acquisition. Acquisition-related transaction and restructuring costs are expensed as incurred.
During the measurement period, which is not to exceed one year from the acquisition date, we may record adjustments to the acquired assets and liabilities assumed, with a corresponding offset to goodwill or the preliminary purchase price, to reflect new information obtained about facts and circumstances that existed as of the acquisition date. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.
Goodwill and Acquired Intangible Assets
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. The Company has one reporting unit and tests goodwill for impairment at least annually in the fourth quarter or more frequently if indicators of potential impairment exist. We first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If the reporting unit does not pass the qualitative assessment, a quantitative test is performed by comparing the fair value of our reporting unit with its carrying amount. We would recognize an impairment loss for the amount by which the carrying amount exceeds the fair value. There were no impairment charges in any of the periods presented in the consolidated financial statements. See Note 4. Acquisition, Goodwill and Acquisition-Related Intangible Assets for additional information.
Acquired intangible assets are carried at cost less accumulated amortization. All acquired intangible assets have been determined to have definite lives and are amortized on a straight-line basis over their estimated useful lives, ranging from three to eight years. Acquired intangible assets are reviewed for impairment under the long-lived asset model described below. There were no impairment charges in any of the periods presented in the consolidated financial statements. See Note 4. Acquisition, Goodwill and Acquisition-Related Intangible Assets for additional information.
Impairment of Long-Lived Assets and Investments in Privately-Held Companies
The carrying amounts of our long-lived assets, including property and equipment, intangible assets, ROU assets and investments in privately-held companies, are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate over its remaining life. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between
the carrying value and the fair value of the impaired asset. No impairment of any long-lived assets was identified for any of the periods presented in the consolidated financial statements.
Loss Contingencies
In the ordinary course of business, we are a party to claims and legal proceedings including matters relating to commercial, employee relations, business practices and intellectual property. In assessing loss contingencies, we use significant judgments and assumptions to estimate the likelihood of loss, impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss. We record a provision for contingent losses when it is both probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. We record a charge equal to the minimum estimated liability for litigation costs or a loss contingency only when both of the following conditions are met: (i) information available prior to issuance of our consolidated financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements, and (ii) the range of loss can be reasonably estimated. We regularly evaluate current information available to us to determine whether such accruals should be adjusted and whether new accruals are required.
Revenue Recognition
We generate revenue from sales of our products, which incorporate our EOS software and accessories such as cables and optics, to direct customers and channel partners together with post-contract customer support (“PCS”). We typically sell products and PCS in a single contract. We recognize revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services. We apply the following five-step revenue recognition model:
Identification of the contract, or contracts, with a customer
Identification of the performance obligations in the contract
Determination of the transaction price
Allocation of the transaction price to the performance obligations in the contract
Recognition of revenue when (or as) we satisfy the performance obligation
Post-Contract Customer Support ("PCS")
PCS, which includes technical support, hardware repair and replacement parts beyond standard warranty, bug fixes, patches and unspecified upgrades on a when-and-if-available basis, is offered under renewable, fee-based contracts. We initially defer PCS revenue and recognize it ratably over the life of the PCS contract as there is no discernible pattern of delivery related to these promises. We do not provide unspecified upgrades on a set schedule and address customer requests for technical support if and when they arise, with the related expenses recognized as incurred. PCS contracts generally have a term of one to three years.
Contracts with Multiple Performance Obligations
Most of our contracts with customers, other than renewals of PCS, contain multiple performance obligations with a combination of products and PCS. Products and PCS generally qualify as distinct performance obligations. Our hardware includes EOS software, which together deliver the essential functionality of our products. For contracts that contain multiple performance obligations, we allocate revenue to each distinct performance obligation based on the standalone selling price ("SSP"). Judgment is required to determine the SSP for each distinct performance obligation. We use a range of amounts to estimate SSP for products and PCS sold together in a contract to determine whether there is a discount to be allocated based on the relative SSP of the various products and PCS.
If we do not have an observable SSP, such as when we do not sell a product or service separately, then SSP is estimated using judgment and considering all reasonably available information such as gross margin, market conditions and information about the size and/or purchase volume of the customer. We generally use a range of amounts to estimate SSP for individual products and services based on multiple factors including, but not limited to product category, actual and expected volume, discounting policies, and customer vertical and size.
In determining if control has transferred, we consider whether certain indicators of the transfer of control are present, such as the transfer of title, present right to payment, significant risks and rewards of ownership, and customer acceptance when
acceptance is not a formality. Revenue from sales of hardware is recognized when control transfers to the customer, which is generally when the product is shipped. We defer revenue recognition on customer contracts for new products or use cases, which contain customer-specified requirements that must be met prior to acceptance.
We limit the amount of revenue recognition for contracts containing forms of variable consideration, such as future performance obligations, customer-specific returns, and refund obligations. We include some or all of an estimate of the related at-risk consideration in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recorded under each contract will not occur when the uncertainties surrounding the variable consideration are resolved.
Most of our contracts with customers have standard payment terms of 30 to 90 days. We have determined our contracts generally do not include a significant financing component because the Company and the customer have specific business reasons other than financing for entering into such contracts. Specifically, both we and our customers seek to ensure the customer has a simplified way of purchasing Arista products and services.
We account for multiple contracts with a single partner as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single contract.
We may occasionally accept returns to address customer satisfaction issues even though there is generally no contractual provision for such returns. We estimate returns for sales to customers based on historical return rates applied against current-period shipments. Specific customer returns and allowances are considered when determining our sales return reserve estimate.
Our policy applies to the accounting for individual contracts. However, we have elected a practical expedient to apply the guidance to a portfolio of contracts or performance obligations with similar characteristics so long as such application would not differ materially from applying the guidance to the individual contracts (or performance obligations) within that portfolio. Consequently, we have chosen to apply the portfolio approach when possible, which we do not believe will happen frequently. Additionally, we will evaluate a portfolio of data, when possible, in various situations, including accounting for commissions, rights of return and transactions with variable consideration.
We report revenue net of sales taxes. We include shipping charges billed to customers in revenue and the related shipping costs are included in cost of product revenue.
Contract Balances
A contract asset is recognized when we have a contractual right to consideration for both completed and partially completed performance obligations that have not yet been invoiced. Contract assets are included in other current assets in the accompanying consolidated balance sheets.
A contract liability is recognized when we have received customer payments in advance of our satisfaction of a performance obligation under a contract that is cancellable. Contract liabilities are included in other current liabilities and other long-term liabilities in the accompanying consolidated balance sheets
Deferred revenue is comprised mainly of unearned revenue related to product deferrals from contracts with acceptance clauses and, annual and multi-year PCS contracts.
Research and Development Expenses
Costs related to the research, design and development of our products are charged to research and development expenses as incurred.
Segment Reporting
We develop, market and sell cloud networking solutions, which primarily consist of our switching and routing platforms and related network applications, and there are no segment managers who are held accountable for operations or operating results below the Company level. Our chief operating decision maker is our President, Chief Executive Officer and Chairperson of the Board, who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, we have determined that we operate as one reportable segment.
Stock-Based Compensation
Stock-based compensation cost for equity awards is measured at the grant-date fair value using appropriate valuation techniques and recognized as expense over the requisite service or performance period. We account for forfeitures when they occur.
Stock-based compensation costs for stock options and restricted stock units ("RSUs") are recognized on a straight-line basis over the requisite service period, which is generally two to five years. The Company has granted RSUs that vest upon the satisfaction of both service-based and performance-based conditions ("PRSUs"). The service-based condition for these awards is generally satisfied over one to four years. The performance-based conditions are satisfied upon achieving specified performance targets, such as financial or operating metrics. We record stock-based compensation expense for performance-based equity awards on an accelerated attribution method over the requisite service period, and only if performance-based conditions are considered probable to be satisfied.
See Note 6. Stockholders' Equity and Stock-Based Compensation for a detailed discussion of the Company’s stock plans, assumptions to the valuation techniques, and stock-based compensation expense.
Income Taxes
Income tax expense is an estimate of current income taxes payable in the current fiscal year based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences and carryforwards that we recognize for financial reporting and income tax purposes.
We account for income taxes under the liability approach for deferred income taxes, which requires recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements, but have not been reflected in our taxable income. Estimates and judgments occur in the calculation of certain tax liabilities and in the determination of the recoverability of certain deferred income tax assets, which arise from temporary differences and carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We regularly assess the likelihood that our deferred income tax assets will be realized based on the positive and negative evidence available. We record a valuation allowance to reduce the deferred tax assets to the amount that we are more likely than not to realize.
We believe that we have adequately reserved for our uncertain tax positions, although we can provide no assurance that the final tax outcome of these matters will not be materially different. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and results of operations. The provision for income taxes includes the effects of any reserves that we believe are appropriate, as well as the related net interest and penalties.
We regularly review our tax positions and benefits to be realized. We recognize tax liabilities based upon our estimate of whether, and to the extent to which, additional taxes will be due when such estimates are more likely than not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. We recognize interest and penalties related to income tax matters as income tax expense.
The U.S. tax rules require U.S. tax on foreign earnings, known as global intangible low taxed income (“GILTI”). Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). We selected the deferred method of accounting and recorded the associated basis differences anticipated to influence prospective GILTI calculations.
Recently Adopted Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)-Improvements to Income Tax Disclosures. The ASU requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, the ASU requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in this ASU are required to be adopted
for fiscal years beginning after December 15, 2024. We have adopted ASU 2023-09 for the year ended December 31, 2025 on a prospective basis. See Note 8, Income Taxes for the inclusion of the new required disclosure.
Recent Accounting Pronouncements Not Yet Effective
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions, and also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted. We are currently evaluating the provisions of this ASU.
On December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270) which is intended to streamline the guidance in ASC 270, Interim Reporting, and clarify when it applies. Under the amendments, an entity is subject to ASC 270 if it provides interim financial statements and notes in accordance with GAAP. ASU 2025-11 also addresses the form and content of such financial statements, interim disclosures requirements, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, and early adoption is permitted. We are currently evaluating the provisions of this ASU.
v3.25.4
Fair Value Measurements
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Assets measured at fair values on a recurring basis
    We measure and report our cash equivalents, restricted cash, and available-for-sale marketable securities at fair value on a recurring basis. The following tables summarize the fair value of these financial assets by significant investment category and their levels within the fair value hierarchy (in millions):
December 31, 2025December 31, 2024
Level ILevel IILevel IIITotalLevel ILevel IILevel IIITotal
Financial Assets:
Cash Equivalents:
Money market funds $1,174.8 $— $— $1,174.8 $1,707.5 $— $— $1,707.5 
Commercial paper— 29.8 — 29.8 — — — — 
Corporate bonds— 6.6 — 6.6 — — — — 
Agency securities— — — — — 3.0 — 3.0 
U.S. government notes124.9 — — 124.9 31.4 — — 31.4 
1,299.7 36.4 — 1,336.1 1,738.9 3.0 — 1,741.9 
Marketable Securities:
Commercial paper— 83.0 — 83.0 — 48.8 — 48.8 
U.S. government notes2,854.3 — — 2,854.3 1,921.5 — — 1,921.5 
Corporate bonds— 4,329.7 — 4,329.7 — 2,593.6 — 2,593.6 
Municipal bonds— 14.5 14.5 — — — — 
Agency securities— 1,497.6 — 1,497.6 — 977.2 — 977.2 
2,854.3 5,924.8 — 8,779.1 1,921.5 3,619.6 — 5,541.1 
Other Assets:
Money market funds - restricted cash1.4 — — 1.4 1.4 — — 1.4 
Total Financial Assets$4,155.4 $5,961.2 $— $10,116.6 $3,661.8 $3,622.6 $— $7,284.4 
During the year ended on December 31, 2025, the Company did not make any transfers between the levels of the fair value hierarchy.
    The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our debt securities measured at fair value on a recurring basis (in millions):
December 31, 2025December 31, 2024
Amortized CostUnrealized GainsUnrealized LossesFair ValueAmortized CostUnrealized GainsUnrealized LossesFair Value
Commercial paper$112.8 $— $— $112.8 $48.8 $— $— $48.8 
U.S. government2,970.4 8.8 — 2,979.2 1,954.8 2.7 (4.6)1,952.9 
Corporate bonds4,321.2 16.0 (0.9)4,336.3 2,595.7 4.4 (6.5)2,593.6 
Municipal bonds14.5 — — 14.5 — — — — 
Agency securities1,495.5 2.7 (0.6)1,497.6 981.0 1.6 (2.4)980.2 
Total $8,914.4 $27.5 $(1.5)$8,940.4 $5,580.3 $8.7 $(13.5)$5,575.5 
For debt securities in unrealized loss positions, it is not likely that we will be required to sell such securities before recovery of their amortized cost basis nor do we have the intent to sell such securities before maturity; we invest in debt securities that have maximum maturities of three years and are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these marketable securities, the more susceptible they are to changes in market interest rates and bond yields. Given the short-term and conservative nature of our portfolio, our debt securities are exposed to minimal credit risk; therefore, we did not recognize any credit losses or non-credit-related impairments related to our available-for-sale marketable debt securities for the years ended 2025, 2024 and 2023. All unrealized losses were recognized in other comprehensive income (loss). Realized gains or losses were immaterial for the years ended 2025, 2024 and 2023.
    The following table is an analysis of our debt securities in unrealized loss positions (in millions):
December 31, 2025
Unrealized Losses within 12 months Unrealized Losses 12 months or greaterTotal
Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Commercial paper$9.9 $— $— $— $9.9 $— 
U.S. government notes260.8 $— 15.0 — 275.8 — 
Corporate bonds857.7 (0.9)29.9 — 887.6 (0.9)
Municipal bonds4.7 — — — 4.7 — 
Agency securities473.1 (0.6)— — 473.1 (0.6)
Total $1,606.2 $(1.5)$44.9 $— $1,651.1 $(1.5)
As of December 31, 2025, we had no marketable debt securities with contractual maturities that exceed 36 months. The fair values of marketable debt securities, by remaining contractual maturities, are as follows (in millions):
December 31, 2025
Due in 1 year or less$3,267.4 
Due in 1 year through 3 years5,511.7 
Total marketable securities$8,779.1 
The weighted-average remaining duration of our marketable debt securities is approximately 1.4 years as of December 31, 2025.
v3.25.4
Financial Statements Details
12 Months Ended
Dec. 31, 2025
Balance Sheet Components [Abstract]  
Financial Statements Details Financial Statements Details
Inventories
Inventories consist of the following (in millions):
December 31,
20252024
Raw materials $611.2 $565.4 
Finished goods(1)
1,635.9 1,269.2 
Total inventories $2,247.1 $1,834.6 
(1) The balance includes evaluation inventory totaling $403.7 million and $422.1 million as of December 31, 2025 and December 31, 2024, respectively.

Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in millions):
December 31,
20252024
Deferred cost of goods sold(1)
$1,197.0 $291.3 
Other prepaid expenses and deposits313.0 341.0 
Total prepaid expenses and other current assets$1,510.0 $632.3 
(1) The increase in 2025 was driven by a corresponding increase in deferred product revenue.
Property and Equipment, net
Property and equipment, net consists of the following (in millions):
 December 31,
20252024
Land$47.3 $47.2 
Equipment and machinery 188.3 160.7 
Computer hardware and software 66.2 63.9 
Furniture and fixtures 3.7 3.5 
Leasehold improvements 38.4 34.7 
Construction-in-process 107.9 8.2 
Property and equipment, gross 451.8 318.2 
Less: accumulated depreciation (248.7)(219.4)
Property and equipment, net $203.1 $98.8 
Depreciation expense was $30.9 million, $34.0 million and $31.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Contract Liabilities, Deferred Revenue and Other Performance Obligations
Contract Liabilities
A contract liability is recognized when we have received customer payments in advance of our satisfaction of a performance obligation under a cancellable contract. The following table summarizes the activity related to our contract liabilities (in millions):
Year Ended December 31,
20252024
Contract liabilities, beginning balance$160.8 $133.2 
Less: Revenue recognized from beginning balance(63.1)(58.3)
Add: Contract liabilities recognized152.4 85.9 
Contract liabilities, ending balance$250.1 $160.8 
As of December 31, 2025 and 2024, $114.0 million and $65.7 million, respectively, of our contract liabilities were recorded within other current liabilities with the remaining balance recorded within other long-term liabilities in the accompanying consolidated balance sheets.
Deferred Revenue
Deferred revenue is comprised mainly of unearned revenue related to product deferrals from contracts with acceptance clauses and, annual and multi-year PCS contracts. The following table summarizes the activity related to our deferred revenue (in millions):
Year Ended December 31,
20252024
Deferred revenue, beginning balance$2,791.4 $1,506.2 
Less: Revenue recognized from beginning balance(1,691.5)(860.2)
Add: Deferral of revenue in current period, excluding amounts recognized during the period4,272.5 2,145.4 
Deferred revenue, ending balance$5,372.4 $2,791.4 
Other Performance Obligations
Other performance obligations totaling $503.1 million as of December 31, 2025 include unbilled multi-year PCS and service contract amounts of $275.5 million and $227.6 million of binding contractual agreements with certain customers that are primarily related to future product shipments.
Revenue from Total Remaining Performance Obligations
Total revenue from our contract liabilities, deferred revenue and other performance obligations that is expected to be recognized in future periods was $6.1 billion as of December 31, 2025. Approximately 90% of this future revenue is expected to be recognized over the next two years and the remaining 10% is expected to be recognized during the third to the fifth year.
Other Income, Net
Other income, net consists of the following (in millions):
Year Ended December 31,
202520242023
Other income (expense), net:
Interest income$383.4 $311.0 $152.4 
Other income (expense)10.2 9.5 12.3 
Total other income, net$393.6 $320.5 $164.7 
v3.25.4
Acquisition, Goodwill and Acquisition-Related Intangible Assets
12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisition, Goodwill and Acquisition-Related Intangible Assets Acquisition, Goodwill and Acquisition-Related Intangible Assets
Acquisition and Goodwill
    On June 30, 2025, we completed the acquisition of the VeloCloud business ("VeloCloud") from Broadcom for total cash consideration of $300.0 million. VeloCloud's secure, AI-optimized cloud WAN portfolio provides seamless connectivity to customer sites of any type, complementing Arista's leading data center and campus wired/wireless portfolio. The preliminary purchase price allocation based on the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date, included $268.4 million of intangible assets, $148.0 million of goodwill and $116.4 million of net tangible liabilities assumed as of June 30, 2025. A portion of the goodwill is deductible for tax purposes. The rest of the changes in the carrying value of goodwill for the year ended December 31, 2025 were not material.
Acquisition-Related Intangible Assets
Acquisition-related intangible assets, included in other assets, are subject to amortization on a straight-line basis over their estimated useful lives, as we believe this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. The following table presents details of our acquisition-related intangible assets as of December 31, 2025 and 2024 (in millions, except for years):
December 31, 2025December 31, 2024
Weighted Average Remaining Useful Life (in years)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technology4.0$241.1 $(139.0)$102.1 $154.9 $(119.2)$35.7 
Customer relationships6.2224.3 (48.9)175.4 54.6 (29.5)25.1 
Trade name4.524.9 (13.6)11.3 12.4 (11.2)1.2 
Total5.3$490.3 $(201.5)$288.8 $221.9 $(159.9)$62.0 
Amortization expense related to acquisition-related intangible assets was $41.6 million, $26.8 million and $33.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.
As of December 31, 2025, future estimated amortization expense related to the acquired-related intangible assets is as follows (in millions):
Years Ending December 31,Future Amortization Expense
2026$61.3 
202757.4 
202854.0 
2029 and thereafter116.1 
Total $288.8 
v3.25.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Commitments
We outsource most of our manufacturing and supply chain management operations to third-party contract manufacturers, who procure components and assemble products on our behalf. A significant portion of our purchase orders for finished goods and strategic components, including integrated circuits consigned to contract manufacturers, consists of non-cancellable commitments. Our purchase obligations also encompass software and technology licenses, property and equipment, and other corporate goods and services. As of December 31, 2025, we had non-cancellable purchase commitments not recorded on our balance sheet of $6.8 billion, of which $6.3 billion have confirmed receipt dates within 12 months, and $0.5 billion have confirmed receipt dates greater than 12 months. These open purchase orders are considered enforceable and legally binding, and while we may have some limited ability to reschedule, and adjust our requirements based on our business needs prior to the delivery of goods or performance of services, this can only occur with the agreement of the related supplier.
We also had deposits to our contract manufacturers to secure our purchase commitments in the amount of $53.0 million and $95.8 million as of December 31, 2025 and 2024, respectively, which were recorded within prepaid expenses and other current assets, as well as other assets in the consolidated balance sheets.
Leases
We have operating lease arrangements for office space, data center, equipment and other corporate assets. As of December 31, 2025, we had lease payment obligations, net of immaterial sublease income, of $90.5 million, with $22.1 million payable within 12 months.
Property project
During the year ended December 31, 2021, we purchased land and the improvements thereon in Santa Clara, California to construct a building for office, lab and data center space. The estimated capital expenditures related to this project is expected to be approximately $170.0 million to $195.0 million through December 31, 2026 at which time construction is expected to be completed.
Guarantees
We have entered into agreements with some of our direct customers and channel partners that contain indemnification provisions relating to potential situations where claims could be alleged that our products infringe the intellectual property rights of a third-party. We have, at our option and expense, the ability to repair any infringement, replace product with a non-infringing equivalent-in-function product or refund our customers all or a portion of the value of the product. Other guarantees or indemnification agreements include guarantees of product and service performance and standby letters of credit for leased facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions, and our guarantee and indemnification arrangements have not had any material impact on our consolidated financial statements to date.
Legal Proceedings
    In the ordinary course of business, we are a party to other claims and legal proceedings including matters relating to commercial, employee relations, business practices and intellectual property.
    We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of December 31, 2025, provisions recorded for contingent losses related to other claims and matters have not been significant. Based on currently-available information, management does not believe that any additional liabilities relating to other unresolved matters are probable or that the amount of any resulting loss is estimable, and believes these other matters are not likely, individually and in the aggregate, to have a material adverse effect on our financial position, results of operations or cash flows; however, litigation is subject to inherent uncertainties and our view of these matters may change in the future. Were an unfavorable outcome to occur, there exists the possibility of a material adverse impact on our financial position, results of operations or cash flows for the period in which the unfavorable outcome occurs, and potentially in future periods.
v3.25.4
Stockholders' Equity and Stock-Based Compensation
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity and Stock-Based Compensation Stockholders' Equity and Stock-Based Compensation
Stock Repurchase Program
In May 2025, we completed repurchases under the $1.2 billion Prior Repurchase Program and our board of directors authorized the $1.5 billion New Repurchase Program. This authorization allows us to repurchase shares of our common stock that will be funded from working capital. Repurchases may be made at management's discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchases, trading plans under Rule 10b5-1 of the Exchange Act, or a combination of the foregoing. The New Repurchase Program does not obligate us to acquire any of our common stock and may be suspended or discontinued by the Company at any time without prior notice. During the year ended December 31, 2025, we repurchased a total of $921.0 million of our common stock under our Prior Repurchase Program and $682.1 million of our common stock under our New Repurchase Program. As of December 31, 2025, the remaining authorized amount for stock repurchases under the New Repurchase Program was approximately $817.9 million.
A summary of the stock repurchase activities for the years ended December 31, 2025 and 2024 is as follows (in millions, except per share amounts):
Year Ended December 31,
20252024
Aggregate purchase price(1)
$1,603.1 $423.6 
Shares repurchased15.9 5.5 
Average price paid per share(1)
$100.63 $77.13 
(1) Aggregate purchase price and average price paid per share for the year of 2025 include costs associated with the repurchases but exclude the 1% excise tax accrued on our share repurchases as a result of the Inflation Reduction Act of 2022.
The aggregate purchase price of repurchased shares of our common stock is recorded as a reduction to retained earnings in our consolidated statements of stockholders' equity. All shares repurchased have been retired.
Equity Award Plan Activities
2014 Employee Stock Purchase Plan
In April 2014, the board of directors and stockholders approved the 2014 Employee Stock Purchase Plan (“ESPP”). The ESPP became effective on the first day that our common stock was publicly traded. The number of shares reserved for issuance under the ESPP increases automatically on January 1 of each year by the number of shares equal to 1% of our shares outstanding as of the preceding December 31. This annual increase is subject to a maximum of 40 million shares and may be reduced or waived at the discretion of the board of directors. As of December 31, 2025, there remained 104.1 million shares available for issuance under the ESPP.
Under our ESPP, eligible employees are permitted to acquire shares of our common stock at 85% of the lower of the fair market value of our common stock on the first trading day of each offering period or on the exercise date. Each offering period lasts approximately two years starting on the first trading date after February 15 and August 15 of each year, and includes purchase dates every six months on or after February 15 and August 15 of each year. Participants may purchase shares of common stock through payroll deductions up to 15% of their eligible compensation, subject to Internal Revenue Service mandated purchase limits.
During the year ended December 31, 2025, we issued 0.7 million shares at an average purchase price of $67.27 per share under our ESPP.
2014 Equity Incentive Plan
On April 16, 2024, our board of directors adopted an amended and restated Arista Networks, Inc. 2014 Equity Plan ("Restated Plan"), effective April 17, 2024 ("Effective Date") subject to the approval of our stockholders, which was approved at the 2024 Annual Meeting of Stockholders on June 7, 2024.
    The Restated Plan provides for the grant of equity-based awards, including stock options, restricted stock units, restricted stock, stock appreciation rights, and performance awards. The share pool available under the prior version of the Company's 2014 Equity Incentive Plan ("Prior Plan") was extinguished, and the Restated Plan provides for a new share pool not to exceed (i) 52.8 million shares of our Common Stock (“Shares”), plus (ii) any Shares subject to awards under the Prior Plan that, on or after the Effective Date, expired or otherwise terminated without having been exercised in full, or that were forfeited to or repurchased by us, including net settlement of Shares subject to restricted stock units, with the maximum number of
Shares to be added to the Restated Plan as a result of clause (ii) equal to 40.2 million Shares. The Restated Plan’s terms are substantially similar to the Prior Plan’s terms, including with respect to treatment of equity awards in the event of a “change in control” as defined under the Restated Plan, but with certain modifications, including the elimination of the automatic “evergreen” share reserve increase provided for under the Prior Plan. As of December 31, 2025, there remained approximately 45.0 million shares available for grant under the Restated Plan.
Stock Option Activities
The following table summarizes the option activity under our stock plans and related information (in millions, except years and per share amounts):
Number of
Shares
Underlying
Outstanding Options
Weighted-
Average
Exercise
Price per Share
Weighted-
Average
Remaining
Contractual
Term (In Years) 
Aggregate
Intrinsic
Value
Balance—December 31, 20243.1 $6.71 1.5$320.9 
Options granted — — 
Options exercised (2.2)4.10 
Options canceled(0.1)14.70 
Balance—December 31, 20250.8 $12.93 2.7$93.3 
Vested and exercisable—December 31, 20250.8 $12.93 2.7$93.3 
We did not grant any stock options during the years ended December 31, 2025, 2024 and 2023. The aggregate intrinsic value of options exercised during the years ended December 31, 2025, 2024 and 2023 was $211.0 million, $495.1 million and $525.3 million, respectively. The total fair value of options vested for the year ended December 31, 2025 was not material. The total fair value of options vested for the years ended December 31, 2024 and 2023 was approximately $5.6 million and $8.7 million, respectively.
Restricted Stock Unit (RSU) Activities
A summary of the RSU activity is presented below (in millions, except years and per share amounts):
Number of
Shares
Weighted-
Average Grant
Date Fair Value Per Share
Balance—December 31, 202428.6 $45.46 
       RSUs granted 10.7 103.34 
       RSUs vested(8.6)37.98 
       RSUs forfeited/canceled(2.6)51.48 
Unvested balance—December 31, 202528.1 $69.81 
The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2025, 2024 and 2023 was $103.34, $72.61 and $39.49 per share, respectively. The total fair value of RSUs vested for the years ended December 31, 2025, 2024 and 2023 was approximately $310.1 million, $251.8 million, and $225.5 million, respectively.
Stock-Based Compensation Expense
The following table summarizes the stock-based compensation expense related to our equity awards (in millions):
Year Ended December 31,
202520242023
Cost of revenue $26.9 $15.8 $12.8 
Research and development 260.7 211.8 172.2 
Sales and marketing
104.1 78.8 71.1 
General and administrative 47.5 49.0 40.7 
           Total stock-based compensation $439.2 $355.4 $296.8 
Determination of Fair Value
We record stock-based compensation on equity awards based on their fair value as of the grant date. We value RSUs at the closing market price of our common stock on the grant date. For option awards and ESPP offerings, we use the Black-Scholes option pricing model to determine fair value. We recognize such costs as compensation expense generally on a straight-line basis over the requisite service period of the award.
As of December 31, 2025, there were $1.5 billion of unrecognized compensation costs related to all unvested awards. The unamortized compensation costs are expected to be recognized over a weighted-average period of approximately 4.3 years.
v3.25.4
Net Income Per Share
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
Basic net income per share is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares of common stock outstanding during the period, including potential common shares assuming the dilutive effect of outstanding stock options, restricted stock units, and the employee stock purchase plan using the treasury stock method. Potential common shares whose effect would have been antidilutive are excluded from the computation of diluted net income per share. The following table sets forth the computation of our basic and diluted net income per share attributable to common stockholders, as adjusted to give effect to the Stock Split (in millions, except per share amounts):
Year Ended December 31,
202520242023
Net income $3,511.4 $2,852.1 $2,087.3 
Basic weighted-average shares outstanding1,258.0 1,256.3 1,237.4 
Add weighted-average effects of dilutive securities:
Employee equity awards17.7 24.8 31.1 
Diluted weighted-average shares outstanding1,275.7 1,281.1 1,268.5 
Net income per share:
Basic $2.79 $2.27 $1.69 
Diluted $2.75 $2.23 $1.65 
The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders because their effects would have been anti-dilutive for the periods presented, as adjusted to give effect to the Stock Split (in millions):
Year Ended December 31,
202520242023
Employee equity awards1.2 0.3 1.0 
v3.25.4
Income Taxes
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income before provision for income taxes are as follows (in millions):
Year Ended December 31,
202520242023
Domestic $3,369.6 $2,635.6 $1,977.7 
Foreign 880.1 629.5 444.3 
Income before income taxes $4,249.7 $3,265.1 $2,422.0 
The components of the provision for income taxes are as follows (in millions):
Year Ended December 31,
202520242023
Current provision for income taxes:
Federal $785.3 $751.3 $574.4 
State 142.9 114.7 106.9 
Foreign 122.1 39.8 24.2 
Total current 1,050.3 905.8 705.5 
Deferred tax expense (benefit):
Federal (294.1)(504.7)(372.3)
State (46.8)(42.8)(41.1)
Foreign 28.9 54.7 42.6 
Total deferred tax expense (benefit)(312.0)(492.8)(370.8)
Total provision for income taxes$738.3 $413.0 $334.7 
We adopted ASU 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" on a prospective basis beginning with the year ended December 31, 2025. The following table presents required disclosure pursuant to ASU
2023-09 and reconciles the U.S. federal statutory income tax amount and rate to our total provision for income taxes amount and rate for the year ended December 31, 2025 (in millions except for percentages):
Year Ended December 31, 2025
AmountPercent
U.S. federal statutory income tax rate$892.4 21.00 %
State tax, net of federal benefit1
76.3 1.80 
Foreign Tax Effects
         Ireland
            Statutory tax rate difference between Ireland and US(45.4)(1.07)
            Other12.6 0.30 
         Other jurisdictions (1.4)(0.03)
Enactment of New Tax Laws 22.6 0.53 
Effect of Cross Border Tax Laws
          Net Controlled Foreign Corporation Tested Income(32.6)(0.77)
          Other2.3 0.05 
Tax Credits
          Research and Development Tax Credit(54.8)(1.29)
Nontaxable or Nondeductible Items
          Stock-Based Compensation(123.9)(2.91)
          Other1.2 0.02 
Changes in Unrecognized Tax Benefits(11.0)(0.26)
          Total Provision for Income Taxes$738.3 17.37 %
(1) State taxes in Georgia, Kentucky and Missouri for 2025 made up the majority (greater than 50 percent) of the tax effect in the state tax category.

The following table presents the required disclosures prior to our adoption of ASU 2023-09 and reconciles the U.S. federal statutory income tax rate and our effective tax rate for the years ended December 31, 2024 and December 31, 2023 (in percentages):
Year Ended December 31,
20242023
U.S. federal statutory income tax rate21.00 %21.00 %
State tax, net of federal benefit 1.75 2.13 
Taxes on foreign earnings differential (2.38)(1.96)
Tax credits (2.79)(2.74)
Stock-based compensation(4.96)(4.59)
Other, net 0.03 (0.03)
Effective tax rate12.65 %13.81 %
On July 4, 2025, the OBBB Act was signed into law in the U.S. This legislation contains a broad range of tax reform provisions affecting businesses. The full effects of the legislation on our annual effective tax rate and cash tax position are reflected in our twelve months ended December 31, 2025 period results.
Our provision for income taxes and effective tax rate increased for the year ended December 31, 2025, as compared to 2024. The increase in our income taxes was primarily associated with a decrease in tax benefits attributable to equity-based compensation. Excess tax benefits resulting from stock awards were $159.2 million, $212.3 million and $151.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows (in millions) :
December 31,
20252024
Deferred tax assets:
Intangible assets$244.9 $273.9 
Reserves and accruals not currently deductible146.4 135.2 
Deferred revenue1,130.8 566.3 
Tax credits134.0 130.2 
Lease financing obligation17.7 13.7 
Capitalized research and development expenses417.0 634.5 
Stock-based compensation53.4 38.6 
Net operating losses19.7 25.9 
Other2.8 3.6 
Gross deferred tax assets 2,166.7 1,821.9 
Valuation allowance (195.8)(179.8)
Total deferred tax assets 1,970.9 1,642.1 
Deferred tax liabilities:
US tax on foreign earnings(167.5)(189.8)
Right of use asset(15.7)(11.6)
Other(14.1)(0.3)
Total deferred tax liabilities (197.3)(201.7)
Net deferred tax assets $1,773.6 $1,440.4 
The change in valuation allowance from December 31, 2024 to December 31, 2025 is substantially attributable to the uncertainty regarding the realizability of state deferred tax assets,
As of December 31, 2025, we had $210.1 million and $120.5 million of net operating loss carryforwards for federal and state income tax purposes, respectively, from acquisitions. These federal and state losses will begin to expire in 2028 and 2029, respectively. We do not have any material foreign net operating losses.
As of December 31, 2025, our state tax credit carryforwards for income tax purposes before valuation allowances were approximately $257.2 million, which can be carried over indefinitely. We have provided a valuation allowance of $195.8 million for deferred tax assets, primarily related to state carryforwards that we do not believe are more likely than not to be realized.
Utilization of the net operating losses and tax credit carryforwards may be subject to limitations due to ownership change limitations provided in the Internal Revenue Code and similar state or foreign provisions.
U.S. tax law generally requires U.S. shareholders of a controlled foreign corporation (“CFC”) to include the annual earnings of foreign subsidiaries into U.S. taxable income each year. Correspondingly, most of the undistributed earnings are deemed to be previously taxed for U.S. tax purposes and distributions of the unremitted earnings do not have any significant U.S. federal income tax impact. The determination of the future tax consequences of the remittance of these earnings is not practicable.
Income Taxes Paid
We have made tax payments and received refunds during the year ended December 31, 2025 as follows (in millions):
Year Ended December 31, 2025
U.S. Federal$808.0 
State:
Other175.2 
Foreign:
Ireland90.3 
Other22.4 
Foreign subtotal:112.7 
Total cash paid for income taxes (net of refunds)$1,095.9 
Uncertain Tax Positions
We recognize uncertain tax positions only to the extent that management believes that it is more likely than not that the position will be sustained. The reconciliation of the beginning and ending amount of gross unrecognized tax benefits as of December 31, 2025, 2024 and 2023 is as follows (in millions):
Year Ended December 31,
202520242023
Gross unrecognized tax benefits—beginning balance $181.5 $163.3 $137.4 
Increases related to tax positions taken in a prior year 8.2 0.3 4.7 
Increases related to tax positions taken during current year 20.0 52.7 39.9 
Decreases related to tax positions taken in a prior year (2.6)(8.6)(0.5)
Decreases related to lapse of statute of limitations (15.4)(26.0)(18.2)
Decreases related to settlements with taxing authorities— (0.2)— 
Gross unrecognized tax benefits—ending balance $191.7 $181.5 $163.3 
As of December 31, 2025, 2024 and 2023, the total amount of gross unrecognized tax benefits was $191.7 million, $181.5 million and $163.3 million, respectively, of which $100.7 million, $103.4 million and $90.0 million would affect our effective tax rate if recognized.
Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. For the years ended December 31, 2025 and 2024, the net expense for interest and penalties and the recognized liability for interest and penalties were not material.
The statute of limitations for Federal and most states remains open for 2022 and forward. Some states have net operating loss and tax credit carryforwards, and therefore remain open to examination. Our foreign tax returns, where the statute of limitations have not yet lapsed, are open to audit in the respective foreign countries where the subsidiaries are located.
v3.25.4
Segment and Geographical Information
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographical Information Segment and Geographical Information
We operate as one reportable segment. The accounting policies of the reportable segment are the same as those described in the summary of significant accounting policies. The financial information reviewed by the CODM reflects quarterly and year-to-date operating results, with a primary focus on revenue, gross margin, operating margin and net income as reported on the consolidated statements of income. Consolidated financial information is used by the CODM to evaluate performance and make decisions regarding resource allocation and other strategic initiatives. This consolidated financial information is also what is used to establish and approve operating budgets and forecasts. The measure of segment assets is reported on the consolidated balance sheets in total. There was no change for each of the periods presented in the measurement methods used to determine reported segment profit and loss.
The CODM reviews the following significant segment expenses, which are presented separately on the Company’s consolidated statements of income: cost of revenue and operating expenses. Other segment items that are included in the calculation of the Company’s net income include other income (expense), net, which is further described in Note 3. Financial Statements Details and income taxes, which is further described in Note 8. Income Taxes. Other segment disclosures such as depreciation and amortization and stock-based compensation are disclosed in the Consolidated Statements of Cash Flows.
The following table represents revenue based on customers' shipping addresses (in millions):
Year Ended December 31,
202520242023
Americas(1)
$7,122.1 $5,729.0 $4,651.2 
Europe, Middle East and Africa 1,070.3 713.2 671.0 
Asia Pacific 813.3 560.9 538.0 
Total revenue $9,005.7 $7,003.1 $5,860.2 
(1) Includes $7,063.8 million, $5,663.0 million and $4,541.5 million revenue generated from the U.S. for the three years ended December 31, 2025, 2024 and 2023, respectively
Long-lived assets, excluding intercompany receivables, investments in subsidiaries, investments in privately-held companies and deferred tax assets, net by location are summarized as follows (in millions):
December 31,
20252024
United States $184.8 $83.5 
International 18.3 15.3 
Total $203.1 $98.8 
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Jayshree Ullal [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On November 14, 2025, Jayshree Ullal, our Chairperson and Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of: (i) up to 5,726,000 shares of our common stock; and (ii) 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 February 20, 2027, or earlier if all transactions under the trading arrangement are completed. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).
Name Jayshree Ullal
Title Chairperson and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 14, 2025
Expiration Date February 20, 2027
Arrangement Duration 463 days
Aggregate Available 5,726,000
Yvonne Wassenaar [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On November 21, 2025, Yvonne Wassenaar, a member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to an aggregate of 5,576 shares of our common stock. The duration of the trading arrangement is until February 26, 2027, or earlier if all transactions under the trading arrangement are completed. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).
Name Yvonne Wassenaar
Title Board of Directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 21, 2025
Expiration Date February 26, 2027
Arrangement Duration 462 days
Aggregate Available 5,576
Chantelle Breithaupt [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On December 11, 2025, Chantelle Breithaupt, our Senior Vice President and Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement 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. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).
Name Chantelle Breithaupt
Title Senior Vice President and Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date December 11, 2025
Expiration Date December 31, 2026
Arrangement Duration 385 days
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. In addition, our Legal and Information Technology ("IT")/Information Security ("IS") teams work together to oversee our compliance with applicable laws and regulations and coordinate with subject matter experts throughout our business to identify, monitor and mitigate risk including information security risk management and cyber defense programs.
Our cybersecurity risk management program is aligned with our overall enterprise risk management programs and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management programs to other legal, compliance, strategic, operational, and financial risk areas.
Our cybersecurity risk management program includes:
an information security management systems policy, including a business continuity policy, acceptable use and physical security policies, and an incident response policy and plan for responding to cybersecurity incidents, among others;
risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment;
a security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents;
the use of internal audit teams and external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls;
cybersecurity awareness, data protection, and privacy training of our employees, incident response personnel, and senior management; and
a vetting and management process for third party service providers, suppliers, and vendors
Through this program, our IT/Cybersecurity team identifies and executes improvements based upon its own assessments, public cybersecurity events and the identification of new risks by third parties, including our external cybersecurity consultants. As part of these continuous improvement efforts, there may be times when the IT/Cybersecurity team prioritizes certain cybersecurity fixes or program improvements over other measures, which could lead to new known or unknown risks being identified on an ongoing basis. Cybersecurity threat actors are often highly sophisticated and nimble in their attacks. Despite these efforts, we cannot guarantee that our priorities and efforts will prevent any cybersecurity incident from happening.
We also engage in periodic testing programs, using both internal assets and external consultants, including penetration testing, and incorporate multiple layers of physical, logical and written controls into our cybersecurity risk management program. Our IT/Cybersecurity team leverages centralized identity management, encryption configurations and technologies on the systems, devices, and third-party connections used in our operations.
We also maintain cyber liability insurance coverage. While we currently hold such coverage, we cannot be certain that our insurance coverage will be adequate for liabilities actually incurred, that insurance will continue to be available to us on economically reasonable terms, or at all, or that any future claim will not be excluded or otherwise be denied coverage by any insurer.
As of the date of this report, we have not identified any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that we believe have, or are likely to, materially affect us, our business strategy, results of operations, or financial condition. For additional information concerning risks from cybersecurity threats, please refer to Item 1A, “Risk Factors,” in this annual report on Form 10-K, including the risk factors in the category entitled, “Risks Related to Cybersecurity and Data Privacy”.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. In addition, our Legal and Information Technology ("IT")/Information Security ("IS") teams work together to oversee our compliance with applicable laws and regulations and coordinate with subject matter experts throughout our business to identify, monitor and mitigate risk including information security risk management and cyber defense programs.
Our cybersecurity risk management program is aligned with our overall enterprise risk management programs and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management programs to other legal, compliance, strategic, operational, and financial risk areas.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (Committee) oversight of cybersecurity and other information technology risks. The Committee oversees management’s
implementation of our cybersecurity risk management program. The Committee receives quarterly reports from our Vice President and Chief Information Security Officer ("CISO"), in conjunction with other senior managers, on cybersecurity risks. In addition, these managers update the Committee, as necessary, regarding any material cybersecurity incidents, as well as incidents with lesser impact potential. The Committee reports to the full Board on cybersecurity no less frequently than once annually. The full Board also receives briefings from management on our cyber risk management program on a periodic basis.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (Committee) oversight of cybersecurity and other information technology risks.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Committee receives quarterly reports from our Vice President and Chief Information Security Officer ("CISO"), in conjunction with other senior managers, on cybersecurity risks.
Cybersecurity Risk Role of Management [Text Block] Our Cybersecurity team, led by one of our Vice Presidents who also serves as our CISO, is responsible for assessing and managing risks from cybersecurity threats. The Cybersecurity team has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our external cybersecurity consultants.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (Committee) oversight of cybersecurity and other information technology risks. The Committee oversees management’s
implementation of our cybersecurity risk management program. The Committee receives quarterly reports from our Vice President and Chief Information Security Officer ("CISO"), in conjunction with other senior managers, on cybersecurity risks. In addition, these managers update the Committee, as necessary, regarding any material cybersecurity incidents, as well as incidents with lesser impact potential. The Committee reports to the full Board on cybersecurity no less frequently than once annually. The full Board also receives briefings from management on our cyber risk management program on a periodic basis.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]
Our CISO has over 20 years of experience in the cybersecurity industry and has been instrumental in building several key security technologies, viz. Network Intrusion Prevention Systems ("NIPS"), Host Intrusion Prevention Systems ("HIPS"), Web Application Firewalls ("WAF"), Whitelisting, Endpoint/Server Host Monitoring ("EDR") and Virtualization Based Security ("VBS"). Previously, our CISO served in senior executive and technical leadership roles in several security companies. In addition, our CISO has experience as a pen-tester and has in-depth knowledge of operating systems, networking and security products. Our CISO holds a bachelor’s degree in computer science and a master’s degree in software systems. In addition, our IS team includes over 20 members each with experience in network security related roles, with the two IS leads reporting to our CISO each having more than 20 years of security experience.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Committee receives quarterly reports from our Vice President and Chief Information Security Officer ("CISO"), in conjunction with other senior managers, on cybersecurity risks. In addition, these managers update the Committee, as necessary, regarding any material cybersecurity incidents, as well as incidents with lesser impact potential. The Committee reports to the full Board on cybersecurity no less frequently than once annually. The full Board also receives briefings from management on our cyber risk management program on a periodic basis.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Organization and Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Principles of Consolidation
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly-owned subsidiaries and are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). All significant intercompany accounts and transactions have been eliminated.
On November 7, 2024, the Company announced a four-for-one forward stock split ("Stock Split") of the Company’s common stock that was effected through the filing of an amendment to the Company's Amended and Restated Certificate of Incorporation ("Amendment") on December 3, 2024. The Stock Split proportionately increased the authorized shares of common stock, and all share and per share amounts presented herein have been retroactively adjusted to reflect the impact of the Stock Split.
Certain reclassifications of prior period amounts were made in the current year to conform to the current period presentation.
Use of Estimates
Use of Estimates
The preparation of the accompanying consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, but are not limited to, valuation of inventory and contract manufacturer/supplier liabilities, accounting for income taxes, including the recognition of deferred tax assets and liabilities, valuation allowance on deferred tax assets and reserves for uncertain tax positions, revenue recognition and deferred revenue, valuation of goodwill and acquisition-related intangible assets, estimate of useful lives of long-lived assets including intangible assets, and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust these estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from these estimates.
Concentrations of Business Risk
Concentrations of Business and Credit Risk
We work closely with third-party contract manufacturers to manufacture our products. As of December 31, 2025, we had three primary contract manufacturing partners, who provided the vast majority of our electronic manufacturing services. Our contract manufacturing partners deliver our products to our third-party direct fulfillment facilities. We and our fulfillment partners then perform labeling, final configuration, quality assurance testing and shipment to our customers. Our products rely on key components, including certain integrated circuit components and power supplies, some of which our contract manufacturing partners purchase on our behalf from a limited number of suppliers, including certain sole-source providers. In addition, we rely heavily on a single merchant silicon supplier for our switching chips. We generally do not have guaranteed supply contracts with our component suppliers, and our manufacturing partners could delay shipments or cease manufacturing such products or selling them to us at any time. If we are unable to obtain a sufficient quantity of these components on commercially reasonable terms or in a timely manner, or if we are unable to obtain alternative sources for these components, sales of our products could be delayed or halted entirely, or we may be required to redesign our products. Quality or performance failures of our products or changes in our contractors’ or vendors’ financial or business condition could disrupt our ability to supply quality products to our customers. Any of these events could result in lost sales and damage to our end-customer relationships, which would adversely impact our business, financial condition and results of operations.
Concentrations of Credit Risk
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. Our cash equivalents and marketable securities are invested in high
quality financial instruments with banks and financial institutions. Such deposits may be in excess of insured limits provided on such deposits.
Our accounts receivable are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk with respect to accounts receivable by performing ongoing credit evaluations of our customers to assess the probability of collection based on a number of factors, including past transaction experience with the customer, evaluation of their credit history, the credit limits extended, review of the invoicing terms of the arrangement, and current economic conditions that may affect a customer’s ability to pay. In situations where a customer may be thinly capitalized and we have limited payment history with it, we will either establish a small credit limit or require it to prepay its purchases. We generally do not require our customers to provide collateral to support accounts receivable. We have recorded an allowance for doubtful accounts for accounts receivables that we have determined to be uncollectible. We mitigate credit risk with respect to accounts receivables by performing ongoing credit evaluations of the borrower to assess the probability of collecting all amounts due to us under the existing contractual terms.
We market and sell our products through both our direct sales force and our channel partners, including distributors, value-added resellers, system integrators and OEM partners, and in conjunction with various technology partners. Significant customers are those that represent more than 10% of our total revenue during the period.
Cash and Cash Equivalents
Cash and Cash Equivalents
We consider all highly liquid investments with original or remaining maturities of three months or less at the time of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with various financial institutions and highly liquid investments in money market funds. Interest is accrued as earned.
Marketable Securities
Marketable Securities
We classify all highly liquid investments in debt securities with maturities of greater than three months at the date of purchase as marketable securities. We have classified and accounted for our marketable debt securities as available-for-sale. We determine the appropriate classification of these investments at the time of purchase and reevaluate such designation at each balance sheet date. After consideration of our risk versus reward objectives, as well as our liquidity requirements, we may hold or sell these securities prior to their stated maturities. As we view these securities as available to support current operations, we classify securities with maturities beyond 12 months as current assets under the caption marketable securities in the accompanying consolidated balance sheets. We carry these securities at fair value. For marketable debt securities, we report the unrealized gains and losses, net of taxes, as a component of stockholders’ equity. We determine any realized gains or losses on the sale of marketable securities using the specific identification method, and record such gains and losses in other income, net in the accompanying consolidated statements of income.
For our debt securities in an unrealized loss position, we determine whether a credit loss exists by considering, among other factors, current market conditions, credit quality of debt issuers, any changes to the rating of the security by a rating agency, and the extent to which fair value is less than cost. We would recognize an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and write down the amortized cost basis of the investment if it is more likely than not we will be required to sell or we intend to sell the investment before recovery of its amortized cost basis.
Accounts Receivable
Accounts Receivable
Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. We estimate our allowance for doubtful accounts based upon the collectability of the receivables in light of historical trends, reasonable and supportable information of our customers' economic conditions that may affect our customers’ ability to pay, and prevailing economic conditions. This evaluation is done in order to identify issues that may impact the collectability of receivables and related estimated required allowance. Revisions to the allowance are recorded as an adjustment to bad debt expense. After appropriate collection efforts are exhausted, specific accounts receivable deemed to be uncollectible are charged against the allowance in the period they are deemed uncollectible. Recoveries of accounts receivable previously written-off are recorded as credits to bad debt expense.
Fair Value Measurements
Fair Value Measurements
Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We apply fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. These assets and liabilities include cash and cash equivalents, marketable securities, accounts receivable, accounts payable, and accrued liabilities. Cash equivalents, accounts receivable, accounts payable and accrued liabilities are stated at carrying values in our consolidated financial statements, which approximate their fair value due to the short-term nature of these instruments.
Assets and liabilities recorded at fair value on a recurring basis in the accompanying consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. We use a fair value hierarchy to measure fair value, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The three-tiers of the fair value hierarchy are as follows:
Level I—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;
Level II—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and
Level III—Unobservable inputs that are supported by little or no market data for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
Foreign Currency
Foreign Currency
The functional currency of our foreign subsidiaries is either the U.S. dollar or their local currency depending on the nature of the subsidiaries’ activities.
Transaction re-measurement - Assets and liabilities denominated in a currency other than a subsidiary’s functional currency are re-measured into the subsidiary's functional currency using exchange rates in effect at the end of the reporting period, with gains and losses recorded in other income, net in the consolidated statements of income. To date, foreign currency transaction gains and losses and exchange rate fluctuations have not been material to our consolidated financial statements.
Translation - Assets and liabilities of subsidiaries denominated in foreign functional currencies are translated into U.S. dollars at the closing exchange rate on the balance sheet date and equity-related balances are translated at historical exchange rates. Revenues, costs and expenses in foreign functional currencies are translated using average exchange rates that approximate those in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income, a separate component of total stockholders’ equity.
Inventory Valuation and Contract Manufacturer/Supplier Liabilities
Inventory Valuation and Contract Manufacturer/Supplier Liabilities
Inventories primarily consist of finished goods, including evaluation inventory held at customers or partners, and strategic components, primarily integrated circuits. Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Evaluation inventory consists of new products and/or use cases at customer or partner sites for trial purposes. Title to the inventory remains with Arista during the trial period and invoicing occurs only upon completion of the trial period and when/if the products have been accepted by the customer. Manufacturing overhead costs and inbound shipping costs are included in the cost of inventory. We record a provision when inventory is determined to be in excess of anticipated demand, or obsolete, to adjust inventory to its estimated realizable value. For the years ended December 31, 2025, 2024 and 2023, we recorded charges of $131.6 million, $267.2 million and $234.4 million, respectively, within cost of product revenue for inventory write-downs.
Our contract manufacturers procure components and assemble products on our behalf and we procure strategic components from suppliers based on our forecasts. We record a liability and a corresponding charge for non-cancellable, non-returnable purchase commitments with our contract manufacturers and suppliers for quantities in excess of our demand forecasts or that are considered obsolete. For the year ended 2023, we recorded a charge of $113.0 million within cost of product revenue for such liabilities with our contract manufacturers and suppliers. Such charges were not material for the years ended December 31, 2025 and 2024.
We use significant judgment in establishing our forecasts of future demand and obsolete material exposures. These estimates depend on our assessment of current and expected orders from our customers, product development plans and current sales levels. Despite general improvements in the supply environment, fluctuations in supplier lead times and the persistence of some long-lead components require us to maintain elevated inventory levels and purchase commitments. To manage this continued volatility, we maintain extended demand-planning horizons and strategic inventory buffers to ensure continuity of supply and address forecast uncertainty. We expect inventory and purchase commitments to remain volatile due to new product introductions, fluctuating customer demand, and varying supplier lead times. There is, however, no guarantee that all suppliers will meet their commitments in the time frame committed or that actual customer demand will directly match our demand forecasts. If actual market conditions are less favorable than those projected by management, which may be caused by factors within and/or outside of our control, we may be required to increase our inventory write-downs and liabilities to our contract manufacturers and suppliers, which could have an adverse impact on our gross margins and profitability. We regularly evaluate our exposure for inventory write-downs and adequacy of our contract manufacturer and supplier liabilities.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation, except for land which is not depreciated. We capitalize any additions and improvements and expense maintenance and repairs as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, generally three years. Our leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the remaining lease term.
Business Combinations
Business Combinations
We use the acquisition method to account for our business combinations in accordance with Accounting Standards Codification ("ASC") 805 - Business Combinations. We allocate the total fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the acquired businesses are included in our consolidated financial statements from the date of acquisition. Acquisition-related transaction and restructuring costs are expensed as incurred.
During the measurement period, which is not to exceed one year from the acquisition date, we may record adjustments to the acquired assets and liabilities assumed, with a corresponding offset to goodwill or the preliminary purchase price, to reflect new information obtained about facts and circumstances that existed as of the acquisition date. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.
Goodwill and Acquired Intangible Assets
Goodwill and Acquired Intangible Assets
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. The Company has one reporting unit and tests goodwill for impairment at least annually in the fourth quarter or more frequently if indicators of potential impairment exist. We first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If the reporting unit does not pass the qualitative assessment, a quantitative test is performed by comparing the fair value of our reporting unit with its carrying amount. We would recognize an impairment loss for the amount by which the carrying amount exceeds the fair value. There were no impairment charges in any of the periods presented in the consolidated financial statements. See Note 4. Acquisition, Goodwill and Acquisition-Related Intangible Assets for additional information.
Acquired intangible assets are carried at cost less accumulated amortization. All acquired intangible assets have been determined to have definite lives and are amortized on a straight-line basis over their estimated useful lives, ranging from three to eight years. Acquired intangible assets are reviewed for impairment under the long-lived asset model described below. There were no impairment charges in any of the periods presented in the consolidated financial statements.
Impairment of Long-Lived Assets and Investments in Privately-Held Companies
Impairment of Long-Lived Assets and Investments in Privately-Held Companies
The carrying amounts of our long-lived assets, including property and equipment, intangible assets, ROU assets and investments in privately-held companies, are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate over its remaining life. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between
the carrying value and the fair value of the impaired asset.
Loss Contingencies
Loss Contingencies
In the ordinary course of business, we are a party to claims and legal proceedings including matters relating to commercial, employee relations, business practices and intellectual property. In assessing loss contingencies, we use significant judgments and assumptions to estimate the likelihood of loss, impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss. We record a provision for contingent losses when it is both probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. We record a charge equal to the minimum estimated liability for litigation costs or a loss contingency only when both of the following conditions are met: (i) information available prior to issuance of our consolidated financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements, and (ii) the range of loss can be reasonably estimated. We regularly evaluate current information available to us to determine whether such accruals should be adjusted and whether new accruals are required.
Revenue Recognition and Contract Balances
Revenue Recognition
We generate revenue from sales of our products, which incorporate our EOS software and accessories such as cables and optics, to direct customers and channel partners together with post-contract customer support (“PCS”). We typically sell products and PCS in a single contract. We recognize revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services. We apply the following five-step revenue recognition model:
Identification of the contract, or contracts, with a customer
Identification of the performance obligations in the contract
Determination of the transaction price
Allocation of the transaction price to the performance obligations in the contract
Recognition of revenue when (or as) we satisfy the performance obligation
Post-Contract Customer Support ("PCS")
PCS, which includes technical support, hardware repair and replacement parts beyond standard warranty, bug fixes, patches and unspecified upgrades on a when-and-if-available basis, is offered under renewable, fee-based contracts. We initially defer PCS revenue and recognize it ratably over the life of the PCS contract as there is no discernible pattern of delivery related to these promises. We do not provide unspecified upgrades on a set schedule and address customer requests for technical support if and when they arise, with the related expenses recognized as incurred. PCS contracts generally have a term of one to three years.
Contracts with Multiple Performance Obligations
Most of our contracts with customers, other than renewals of PCS, contain multiple performance obligations with a combination of products and PCS. Products and PCS generally qualify as distinct performance obligations. Our hardware includes EOS software, which together deliver the essential functionality of our products. For contracts that contain multiple performance obligations, we allocate revenue to each distinct performance obligation based on the standalone selling price ("SSP"). Judgment is required to determine the SSP for each distinct performance obligation. We use a range of amounts to estimate SSP for products and PCS sold together in a contract to determine whether there is a discount to be allocated based on the relative SSP of the various products and PCS.
If we do not have an observable SSP, such as when we do not sell a product or service separately, then SSP is estimated using judgment and considering all reasonably available information such as gross margin, market conditions and information about the size and/or purchase volume of the customer. We generally use a range of amounts to estimate SSP for individual products and services based on multiple factors including, but not limited to product category, actual and expected volume, discounting policies, and customer vertical and size.
In determining if control has transferred, we consider whether certain indicators of the transfer of control are present, such as the transfer of title, present right to payment, significant risks and rewards of ownership, and customer acceptance when
acceptance is not a formality. Revenue from sales of hardware is recognized when control transfers to the customer, which is generally when the product is shipped. We defer revenue recognition on customer contracts for new products or use cases, which contain customer-specified requirements that must be met prior to acceptance.
We limit the amount of revenue recognition for contracts containing forms of variable consideration, such as future performance obligations, customer-specific returns, and refund obligations. We include some or all of an estimate of the related at-risk consideration in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recorded under each contract will not occur when the uncertainties surrounding the variable consideration are resolved.
Most of our contracts with customers have standard payment terms of 30 to 90 days. We have determined our contracts generally do not include a significant financing component because the Company and the customer have specific business reasons other than financing for entering into such contracts. Specifically, both we and our customers seek to ensure the customer has a simplified way of purchasing Arista products and services.
We account for multiple contracts with a single partner as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single contract.
We may occasionally accept returns to address customer satisfaction issues even though there is generally no contractual provision for such returns. We estimate returns for sales to customers based on historical return rates applied against current-period shipments. Specific customer returns and allowances are considered when determining our sales return reserve estimate.
Our policy applies to the accounting for individual contracts. However, we have elected a practical expedient to apply the guidance to a portfolio of contracts or performance obligations with similar characteristics so long as such application would not differ materially from applying the guidance to the individual contracts (or performance obligations) within that portfolio. Consequently, we have chosen to apply the portfolio approach when possible, which we do not believe will happen frequently. Additionally, we will evaluate a portfolio of data, when possible, in various situations, including accounting for commissions, rights of return and transactions with variable consideration.
We report revenue net of sales taxes. We include shipping charges billed to customers in revenue and the related shipping costs are included in cost of product revenue.
Contract Balances
A contract asset is recognized when we have a contractual right to consideration for both completed and partially completed performance obligations that have not yet been invoiced. Contract assets are included in other current assets in the accompanying consolidated balance sheets.
A contract liability is recognized when we have received customer payments in advance of our satisfaction of a performance obligation under a contract that is cancellable. Contract liabilities are included in other current liabilities and other long-term liabilities in the accompanying consolidated balance sheets
Deferred revenue is comprised mainly of unearned revenue related to product deferrals from contracts with acceptance clauses and, annual and multi-year PCS contracts.
Research and Development Expenses
Research and Development Expenses
Costs related to the research, design and development of our products are charged to research and development expenses as incurred.
Segment Reporting
Segment Reporting
We develop, market and sell cloud networking solutions, which primarily consist of our switching and routing platforms and related network applications, and there are no segment managers who are held accountable for operations or operating results below the Company level. Our chief operating decision maker is our President, Chief Executive Officer and Chairperson of the Board, who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, we have determined that we operate as one reportable segment.
Stock-Based Compensation
Stock-Based Compensation
Stock-based compensation cost for equity awards is measured at the grant-date fair value using appropriate valuation techniques and recognized as expense over the requisite service or performance period. We account for forfeitures when they occur.
Stock-based compensation costs for stock options and restricted stock units ("RSUs") are recognized on a straight-line basis over the requisite service period, which is generally two to five years. The Company has granted RSUs that vest upon the satisfaction of both service-based and performance-based conditions ("PRSUs"). The service-based condition for these awards is generally satisfied over one to four years. The performance-based conditions are satisfied upon achieving specified performance targets, such as financial or operating metrics. We record stock-based compensation expense for performance-based equity awards on an accelerated attribution method over the requisite service period, and only if performance-based conditions are considered probable to be satisfied.
Income Taxes
Income Taxes
Income tax expense is an estimate of current income taxes payable in the current fiscal year based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences and carryforwards that we recognize for financial reporting and income tax purposes.
We account for income taxes under the liability approach for deferred income taxes, which requires recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements, but have not been reflected in our taxable income. Estimates and judgments occur in the calculation of certain tax liabilities and in the determination of the recoverability of certain deferred income tax assets, which arise from temporary differences and carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We regularly assess the likelihood that our deferred income tax assets will be realized based on the positive and negative evidence available. We record a valuation allowance to reduce the deferred tax assets to the amount that we are more likely than not to realize.
We believe that we have adequately reserved for our uncertain tax positions, although we can provide no assurance that the final tax outcome of these matters will not be materially different. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and results of operations. The provision for income taxes includes the effects of any reserves that we believe are appropriate, as well as the related net interest and penalties.
We regularly review our tax positions and benefits to be realized. We recognize tax liabilities based upon our estimate of whether, and to the extent to which, additional taxes will be due when such estimates are more likely than not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. We recognize interest and penalties related to income tax matters as income tax expense.
The U.S. tax rules require U.S. tax on foreign earnings, known as global intangible low taxed income (“GILTI”). Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). We selected the deferred method of accounting and recorded the associated basis differences anticipated to influence prospective GILTI calculations.
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Effective
Recently Adopted Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)-Improvements to Income Tax Disclosures. The ASU requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, the ASU requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in this ASU are required to be adopted
for fiscal years beginning after December 15, 2024. We have adopted ASU 2023-09 for the year ended December 31, 2025 on a prospective basis.
Recent Accounting Pronouncements Not Yet Effective
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions, and also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted. We are currently evaluating the provisions of this ASU.
On December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270) which is intended to streamline the guidance in ASC 270, Interim Reporting, and clarify when it applies. Under the amendments, an entity is subject to ASC 270 if it provides interim financial statements and notes in accordance with GAAP. ASU 2025-11 also addresses the form and content of such financial statements, interim disclosures requirements, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, and early adoption is permitted. We are currently evaluating the provisions of this ASU.
v3.25.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Financial Assets by Level The following tables summarize the fair value of these financial assets by significant investment category and their levels within the fair value hierarchy (in millions):
December 31, 2025December 31, 2024
Level ILevel IILevel IIITotalLevel ILevel IILevel IIITotal
Financial Assets:
Cash Equivalents:
Money market funds $1,174.8 $— $— $1,174.8 $1,707.5 $— $— $1,707.5 
Commercial paper— 29.8 — 29.8 — — — — 
Corporate bonds— 6.6 — 6.6 — — — — 
Agency securities— — — — — 3.0 — 3.0 
U.S. government notes124.9 — — 124.9 31.4 — — 31.4 
1,299.7 36.4 — 1,336.1 1,738.9 3.0 — 1,741.9 
Marketable Securities:
Commercial paper— 83.0 — 83.0 — 48.8 — 48.8 
U.S. government notes2,854.3 — — 2,854.3 1,921.5 — — 1,921.5 
Corporate bonds— 4,329.7 — 4,329.7 — 2,593.6 — 2,593.6 
Municipal bonds— 14.5 14.5 — — — — 
Agency securities— 1,497.6 — 1,497.6 — 977.2 — 977.2 
2,854.3 5,924.8 — 8,779.1 1,921.5 3,619.6 — 5,541.1 
Other Assets:
Money market funds - restricted cash1.4 — — 1.4 1.4 — — 1.4 
Total Financial Assets$4,155.4 $5,961.2 $— $10,116.6 $3,661.8 $3,622.6 $— $7,284.4 
The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our debt securities measured at fair value on a recurring basis (in millions):
December 31, 2025December 31, 2024
Amortized CostUnrealized GainsUnrealized LossesFair ValueAmortized CostUnrealized GainsUnrealized LossesFair Value
Commercial paper$112.8 $— $— $112.8 $48.8 $— $— $48.8 
U.S. government2,970.4 8.8 — 2,979.2 1,954.8 2.7 (4.6)1,952.9 
Corporate bonds4,321.2 16.0 (0.9)4,336.3 2,595.7 4.4 (6.5)2,593.6 
Municipal bonds14.5 — — 14.5 — — — — 
Agency securities1,495.5 2.7 (0.6)1,497.6 981.0 1.6 (2.4)980.2 
Total $8,914.4 $27.5 $(1.5)$8,940.4 $5,580.3 $8.7 $(13.5)$5,575.5 
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value The following table is an analysis of our debt securities in unrealized loss positions (in millions):
December 31, 2025
Unrealized Losses within 12 months Unrealized Losses 12 months or greaterTotal
Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Commercial paper$9.9 $— $— $— $9.9 $— 
U.S. government notes260.8 $— 15.0 — 275.8 — 
Corporate bonds857.7 (0.9)29.9 — 887.6 (0.9)
Municipal bonds4.7 — — — 4.7 — 
Agency securities473.1 (0.6)— — 473.1 (0.6)
Total $1,606.2 $(1.5)$44.9 $— $1,651.1 $(1.5)
Schedule of Fair Value of Available-for-sale Marketable Securities by Remaining Contractual Maturity The fair values of marketable debt securities, by remaining contractual maturities, are as follows (in millions):
December 31, 2025
Due in 1 year or less$3,267.4 
Due in 1 year through 3 years5,511.7 
Total marketable securities$8,779.1 
v3.25.4
Financial Statements Details (Tables)
12 Months Ended
Dec. 31, 2025
Balance Sheet Components [Abstract]  
Schedule of Inventories
Inventories consist of the following (in millions):
December 31,
20252024
Raw materials $611.2 $565.4 
Finished goods(1)
1,635.9 1,269.2 
Total inventories $2,247.1 $1,834.6 
(1) The balance includes evaluation inventory totaling $403.7 million and $422.1 million as of December 31, 2025 and December 31, 2024, respectively.
Schedule of Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in millions):
December 31,
20252024
Deferred cost of goods sold(1)
$1,197.0 $291.3 
Other prepaid expenses and deposits313.0 341.0 
Total prepaid expenses and other current assets$1,510.0 $632.3 
(1) The increase in 2025 was driven by a corresponding increase in deferred product revenue.
Schedule of Property and Equipment, net
Property and equipment, net consists of the following (in millions):
 December 31,
20252024
Land$47.3 $47.2 
Equipment and machinery 188.3 160.7 
Computer hardware and software 66.2 63.9 
Furniture and fixtures 3.7 3.5 
Leasehold improvements 38.4 34.7 
Construction-in-process 107.9 8.2 
Property and equipment, gross 451.8 318.2 
Less: accumulated depreciation (248.7)(219.4)
Property and equipment, net $203.1 $98.8 
Schedule of Contract Liabilities and Deferred Revenue The following table summarizes the activity related to our contract liabilities (in millions):
Year Ended December 31,
20252024
Contract liabilities, beginning balance$160.8 $133.2 
Less: Revenue recognized from beginning balance(63.1)(58.3)
Add: Contract liabilities recognized152.4 85.9 
Contract liabilities, ending balance$250.1 $160.8 
The following table summarizes the activity related to our deferred revenue (in millions):
Year Ended December 31,
20252024
Deferred revenue, beginning balance$2,791.4 $1,506.2 
Less: Revenue recognized from beginning balance(1,691.5)(860.2)
Add: Deferral of revenue in current period, excluding amounts recognized during the period4,272.5 2,145.4 
Deferred revenue, ending balance$5,372.4 $2,791.4 
Schedule of Other Income, Net
Other income, net consists of the following (in millions):
Year Ended December 31,
202520242023
Other income (expense), net:
Interest income$383.4 $311.0 $152.4 
Other income (expense)10.2 9.5 12.3 
Total other income, net$393.6 $320.5 $164.7 
v3.25.4
Acquisition, Goodwill and Acquisition-Related Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Finite-Lived Intangible Assets The following table presents details of our acquisition-related intangible assets as of December 31, 2025 and 2024 (in millions, except for years):
December 31, 2025December 31, 2024
Weighted Average Remaining Useful Life (in years)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technology4.0$241.1 $(139.0)$102.1 $154.9 $(119.2)$35.7 
Customer relationships6.2224.3 (48.9)175.4 54.6 (29.5)25.1 
Trade name4.524.9 (13.6)11.3 12.4 (11.2)1.2 
Total5.3$490.3 $(201.5)$288.8 $221.9 $(159.9)$62.0 
Schedule of Estimated Amortization Expense
As of December 31, 2025, future estimated amortization expense related to the acquired-related intangible assets is as follows (in millions):
Years Ending December 31,Future Amortization Expense
2026$61.3 
202757.4 
202854.0 
2029 and thereafter116.1 
Total $288.8 
v3.25.4
Stockholders' Equity and Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Class of Treasury Stock
A summary of the stock repurchase activities for the years ended December 31, 2025 and 2024 is as follows (in millions, except per share amounts):
Year Ended December 31,
20252024
Aggregate purchase price(1)
$1,603.1 $423.6 
Shares repurchased15.9 5.5 
Average price paid per share(1)
$100.63 $77.13 
(1) Aggregate purchase price and average price paid per share for the year of 2025 include costs associated with the repurchases but exclude the 1% excise tax accrued on our share repurchases as a result of the Inflation Reduction Act of 2022.
Schedule of Stock Option Activities
The following table summarizes the option activity under our stock plans and related information (in millions, except years and per share amounts):
Number of
Shares
Underlying
Outstanding Options
Weighted-
Average
Exercise
Price per Share
Weighted-
Average
Remaining
Contractual
Term (In Years) 
Aggregate
Intrinsic
Value
Balance—December 31, 20243.1 $6.71 1.5$320.9 
Options granted — — 
Options exercised (2.2)4.10 
Options canceled(0.1)14.70 
Balance—December 31, 20250.8 $12.93 2.7$93.3 
Vested and exercisable—December 31, 20250.8 $12.93 2.7$93.3 
Schedule of Restricted Stock Units Activity
A summary of the RSU activity is presented below (in millions, except years and per share amounts):
Number of
Shares
Weighted-
Average Grant
Date Fair Value Per Share
Balance—December 31, 202428.6 $45.46 
       RSUs granted 10.7 103.34 
       RSUs vested(8.6)37.98 
       RSUs forfeited/canceled(2.6)51.48 
Unvested balance—December 31, 202528.1 $69.81 
Schedule of Stock-Based Compensation Expense
The following table summarizes the stock-based compensation expense related to our equity awards (in millions):
Year Ended December 31,
202520242023
Cost of revenue $26.9 $15.8 $12.8 
Research and development 260.7 211.8 172.2 
Sales and marketing
104.1 78.8 71.1 
General and administrative 47.5 49.0 40.7 
           Total stock-based compensation $439.2 $355.4 $296.8 
v3.25.4
Net Income Per Share (Tables)
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Net Income Per Share Available to Common Stock The following table sets forth the computation of our basic and diluted net income per share attributable to common stockholders, as adjusted to give effect to the Stock Split (in millions, except per share amounts):
Year Ended December 31,
202520242023
Net income $3,511.4 $2,852.1 $2,087.3 
Basic weighted-average shares outstanding1,258.0 1,256.3 1,237.4 
Add weighted-average effects of dilutive securities:
Employee equity awards17.7 24.8 31.1 
Diluted weighted-average shares outstanding1,275.7 1,281.1 1,268.5 
Net income per share:
Basic $2.79 $2.27 $1.69 
Diluted $2.75 $2.23 $1.65 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders because their effects would have been anti-dilutive for the periods presented, as adjusted to give effect to the Stock Split (in millions):
Year Ended December 31,
202520242023
Employee equity awards1.2 0.3 1.0 
v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Taxes
The components of income before provision for income taxes are as follows (in millions):
Year Ended December 31,
202520242023
Domestic $3,369.6 $2,635.6 $1,977.7 
Foreign 880.1 629.5 444.3 
Income before income taxes $4,249.7 $3,265.1 $2,422.0 
Schedule of Components of Income Tax Expense (Benefit)
The components of the provision for income taxes are as follows (in millions):
Year Ended December 31,
202520242023
Current provision for income taxes:
Federal $785.3 $751.3 $574.4 
State 142.9 114.7 106.9 
Foreign 122.1 39.8 24.2 
Total current 1,050.3 905.8 705.5 
Deferred tax expense (benefit):
Federal (294.1)(504.7)(372.3)
State (46.8)(42.8)(41.1)
Foreign 28.9 54.7 42.6 
Total deferred tax expense (benefit)(312.0)(492.8)(370.8)
Total provision for income taxes$738.3 $413.0 $334.7 
Schedule of Effective Income Tax Rate Reconciliation The following table presents required disclosure pursuant to ASU
2023-09 and reconciles the U.S. federal statutory income tax amount and rate to our total provision for income taxes amount and rate for the year ended December 31, 2025 (in millions except for percentages):
Year Ended December 31, 2025
AmountPercent
U.S. federal statutory income tax rate$892.4 21.00 %
State tax, net of federal benefit1
76.3 1.80 
Foreign Tax Effects
         Ireland
            Statutory tax rate difference between Ireland and US(45.4)(1.07)
            Other12.6 0.30 
         Other jurisdictions (1.4)(0.03)
Enactment of New Tax Laws 22.6 0.53 
Effect of Cross Border Tax Laws
          Net Controlled Foreign Corporation Tested Income(32.6)(0.77)
          Other2.3 0.05 
Tax Credits
          Research and Development Tax Credit(54.8)(1.29)
Nontaxable or Nondeductible Items
          Stock-Based Compensation(123.9)(2.91)
          Other1.2 0.02 
Changes in Unrecognized Tax Benefits(11.0)(0.26)
          Total Provision for Income Taxes$738.3 17.37 %
(1) State taxes in Georgia, Kentucky and Missouri for 2025 made up the majority (greater than 50 percent) of the tax effect in the state tax category.

The following table presents the required disclosures prior to our adoption of ASU 2023-09 and reconciles the U.S. federal statutory income tax rate and our effective tax rate for the years ended December 31, 2024 and December 31, 2023 (in percentages):
Year Ended December 31,
20242023
U.S. federal statutory income tax rate21.00 %21.00 %
State tax, net of federal benefit 1.75 2.13 
Taxes on foreign earnings differential (2.38)(1.96)
Tax credits (2.79)(2.74)
Stock-based compensation(4.96)(4.59)
Other, net 0.03 (0.03)
Effective tax rate12.65 %13.81 %
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows (in millions) :
December 31,
20252024
Deferred tax assets:
Intangible assets$244.9 $273.9 
Reserves and accruals not currently deductible146.4 135.2 
Deferred revenue1,130.8 566.3 
Tax credits134.0 130.2 
Lease financing obligation17.7 13.7 
Capitalized research and development expenses417.0 634.5 
Stock-based compensation53.4 38.6 
Net operating losses19.7 25.9 
Other2.8 3.6 
Gross deferred tax assets 2,166.7 1,821.9 
Valuation allowance (195.8)(179.8)
Total deferred tax assets 1,970.9 1,642.1 
Deferred tax liabilities:
US tax on foreign earnings(167.5)(189.8)
Right of use asset(15.7)(11.6)
Other(14.1)(0.3)
Total deferred tax liabilities (197.3)(201.7)
Net deferred tax assets $1,773.6 $1,440.4 
Schedule of Income Taxes Paid
We have made tax payments and received refunds during the year ended December 31, 2025 as follows (in millions):
Year Ended December 31, 2025
U.S. Federal$808.0 
State:
Other175.2 
Foreign:
Ireland90.3 
Other22.4 
Foreign subtotal:112.7 
Total cash paid for income taxes (net of refunds)$1,095.9 
Schedule of Unrecognized Tax Benefits Roll Forward The reconciliation of the beginning and ending amount of gross unrecognized tax benefits as of December 31, 2025, 2024 and 2023 is as follows (in millions):
Year Ended December 31,
202520242023
Gross unrecognized tax benefits—beginning balance $181.5 $163.3 $137.4 
Increases related to tax positions taken in a prior year 8.2 0.3 4.7 
Increases related to tax positions taken during current year 20.0 52.7 39.9 
Decreases related to tax positions taken in a prior year (2.6)(8.6)(0.5)
Decreases related to lapse of statute of limitations (15.4)(26.0)(18.2)
Decreases related to settlements with taxing authorities— (0.2)— 
Gross unrecognized tax benefits—ending balance $191.7 $181.5 $163.3 
v3.25.4
Segment and Geographical Information (Tables)
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Net Revenue and Long Lived Assets, by Location
The following table represents revenue based on customers' shipping addresses (in millions):
Year Ended December 31,
202520242023
Americas(1)
$7,122.1 $5,729.0 $4,651.2 
Europe, Middle East and Africa 1,070.3 713.2 671.0 
Asia Pacific 813.3 560.9 538.0 
Total revenue $9,005.7 $7,003.1 $5,860.2 
(1) Includes $7,063.8 million, $5,663.0 million and $4,541.5 million revenue generated from the U.S. for the three years ended December 31, 2025, 2024 and 2023, respectively
Long-lived assets, excluding intercompany receivables, investments in subsidiaries, investments in privately-held companies and deferred tax assets, net by location are summarized as follows (in millions):
December 31,
20252024
United States $184.8 $83.5 
International 18.3 15.3 
Total $203.1 $98.8 
v3.25.4
Organization and Summary of Significant Accounting Policies (Details)
12 Months Ended
Dec. 03, 2024
Dec. 31, 2025
USD ($)
segment
unit
partner
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Conversion ratio 4      
Concentrations of Business and Credit Risk        
Number of primary contract manufacturing partners | partner   3    
Inventory        
Inventory write-down   $ 131,600,000 $ 267,200,000 $ 234,400,000
Contract manufacturer and supplier charge (favorable charge)   $ 0 0 113,000,000.0
Property and Equipment        
Estimated useful life (in years)   3 years    
Finite-Lived Intangible Assets [Line Items]        
Number of reporting units | unit   1    
Asset impairment   $ 0 0 0
Estimated useful live (in years)   5 years 3 months 18 days    
Impairment of Long-Lived Assets and Investments        
Impairment of long-lived assets   $ 0 $ 0 $ 0
Segment Reporting        
Number of reportable segments | segment   1    
Minimum        
Finite-Lived Intangible Assets [Line Items]        
Estimated useful live (in years)   3 years    
Capitalized Contract Cost [Line Items]        
PCS term of contract (in years)   1 year    
Standard payment terms (in days)   30 days    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Requisite service period of the awards (in years)   2 years    
Performance based period (in years)   1 year    
Maximum        
Finite-Lived Intangible Assets [Line Items]        
Estimated useful live (in years)   8 years    
Capitalized Contract Cost [Line Items]        
PCS term of contract (in years)   3 years    
Standard payment terms (in days)   90 days    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Requisite service period of the awards (in years)   5 years    
Performance based period (in years)   4 years    
Reseller A | Revenue from Contract with Customer Benchmark | Customer Concentration Risk        
Product Information [Line Items]        
Percentage of total per significant customer (as a percent)   16.00% 15.00% 21.00%
Reseller A | Accounts Receivable Benchmark | Customer Concentration Risk        
Product Information [Line Items]        
Percentage of total per significant customer (as a percent)   52.00%    
Reseller B | Revenue from Contract with Customer Benchmark | Customer Concentration Risk        
Product Information [Line Items]        
Percentage of total per significant customer (as a percent)   26.00% 20.00% 18.00%
Reseller B | Accounts Receivable Benchmark | Customer Concentration Risk        
Product Information [Line Items]        
Percentage of total per significant customer (as a percent)     50.00%  
v3.25.4
Fair Value Measurements - Fair Value of Financial Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Financial Assets:    
Cash Equivalents: $ 1,336.1 $ 1,741.9
Marketable Securities: 8,779.1  
Marketable Securities 8,779.1 5,541.1
Money market funds - restricted cash 1.4 1.4
Total Financial Assets 10,116.6 7,284.4
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]    
Amortized Cost 8,914.4 5,580.3
Unrealized Gains 27.5 8.7
Unrealized Losses (1.5) (13.5)
Fair Value 8,940.4 5,575.5
Commercial paper    
Financial Assets:    
Marketable Securities: 83.0 48.8
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]    
Amortized Cost 112.8 48.8
Unrealized Gains 0.0 0.0
Unrealized Losses 0.0 0.0
Fair Value 112.8 48.8
U.S. government notes    
Financial Assets:    
Marketable Securities: 2,854.3 1,921.5
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]    
Amortized Cost 2,970.4 1,954.8
Unrealized Gains 8.8 2.7
Unrealized Losses 0.0 (4.6)
Fair Value 2,979.2 1,952.9
Corporate bonds    
Financial Assets:    
Marketable Securities: 4,329.7 2,593.6
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]    
Amortized Cost 4,321.2 2,595.7
Unrealized Gains 16.0 4.4
Unrealized Losses (0.9) (6.5)
Fair Value 4,336.3 2,593.6
Municipal bonds    
Financial Assets:    
Marketable Securities: 14.5 0.0
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]    
Amortized Cost 14.5 0.0
Unrealized Gains 0.0 0.0
Unrealized Losses 0.0 0.0
Fair Value 14.5 0.0
Agency securities    
Financial Assets:    
Marketable Securities: 1,497.6 977.2
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]    
Amortized Cost 1,495.5 981.0
Unrealized Gains 2.7 1.6
Unrealized Losses (0.6) (2.4)
Fair Value 1,497.6 980.2
Level I    
Financial Assets:    
Cash Equivalents: 1,299.7 1,738.9
Marketable Securities 2,854.3 1,921.5
Money market funds - restricted cash 1.4 1.4
Total Financial Assets 4,155.4 3,661.8
Level I | Commercial paper    
Financial Assets:    
Marketable Securities: 0.0 0.0
Level I | U.S. government notes    
Financial Assets:    
Marketable Securities: 2,854.3 1,921.5
Level I | Corporate bonds    
Financial Assets:    
Marketable Securities: 0.0 0.0
Level I | Municipal bonds    
Financial Assets:    
Marketable Securities: 0.0 0.0
Level I | Agency securities    
Financial Assets:    
Marketable Securities: 0.0 0.0
Level II    
Financial Assets:    
Cash Equivalents: 36.4 3.0
Marketable Securities 5,924.8 3,619.6
Money market funds - restricted cash 0.0 0.0
Total Financial Assets 5,961.2 3,622.6
Level II | Commercial paper    
Financial Assets:    
Marketable Securities: 83.0 48.8
Level II | U.S. government notes    
Financial Assets:    
Marketable Securities: 0.0 0.0
Level II | Corporate bonds    
Financial Assets:    
Marketable Securities: 4,329.7 2,593.6
Level II | Municipal bonds    
Financial Assets:    
Marketable Securities: 14.5 0.0
Level II | Agency securities    
Financial Assets:    
Marketable Securities: 1,497.6 977.2
Level III    
Financial Assets:    
Cash Equivalents: 0.0 0.0
Marketable Securities 0.0 0.0
Money market funds - restricted cash 0.0 0.0
Total Financial Assets 0.0 0.0
Level III | Commercial paper    
Financial Assets:    
Marketable Securities: 0.0 0.0
Level III | U.S. government notes    
Financial Assets:    
Marketable Securities: 0.0 0.0
Level III | Corporate bonds    
Financial Assets:    
Marketable Securities: 0.0 0.0
Level III | Municipal bonds    
Financial Assets:    
Marketable Securities: 0.0
Level III | Agency securities    
Financial Assets:    
Marketable Securities: 0.0 0.0
Money market funds    
Financial Assets:    
Cash Equivalents: 1,174.8 1,707.5
Money market funds | Level I    
Financial Assets:    
Cash Equivalents: 1,174.8 1,707.5
Money market funds | Level II    
Financial Assets:    
Cash Equivalents: 0.0 0.0
Money market funds | Level III    
Financial Assets:    
Cash Equivalents: 0.0 0.0
Commercial paper    
Financial Assets:    
Cash Equivalents: 29.8 0.0
Commercial paper | Level I    
Financial Assets:    
Cash Equivalents: 0.0 0.0
Commercial paper | Level II    
Financial Assets:    
Cash Equivalents: 29.8 0.0
Commercial paper | Level III    
Financial Assets:    
Cash Equivalents: 0.0 0.0
Corporate bonds    
Financial Assets:    
Cash Equivalents: 6.6 0.0
Corporate bonds | Level I    
Financial Assets:    
Cash Equivalents: 0.0 0.0
Corporate bonds | Level II    
Financial Assets:    
Cash Equivalents: 6.6 0.0
Corporate bonds | Level III    
Financial Assets:    
Cash Equivalents: 0.0 0.0
Agency securities    
Financial Assets:    
Cash Equivalents: 0.0 3.0
Agency securities | Level I    
Financial Assets:    
Cash Equivalents: 0.0 0.0
Agency securities | Level II    
Financial Assets:    
Cash Equivalents: 0.0 3.0
Agency securities | Level III    
Financial Assets:    
Cash Equivalents: 0.0 0.0
U.S. government notes    
Financial Assets:    
Cash Equivalents: 124.9 31.4
U.S. government notes | Level I    
Financial Assets:    
Cash Equivalents: 124.9 31.4
U.S. government notes | Level II    
Financial Assets:    
Cash Equivalents: 0.0 0.0
U.S. government notes | Level III    
Financial Assets:    
Cash Equivalents: $ 0.0 $ 0.0
v3.25.4
Fair Value Measurements - Narrative (Details)
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Invested marketable securities, maximum maturity period (in years) 3 years
Marketable securities, maximum maturity period (in months) 36 months
Marketable securities, weighted average remaining duration (in years) 1 year 4 months 24 days
v3.25.4
Fair Value Measurements - Unrealized Loss Position (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Unrealized Losses within 12 months, Fair Value $ 1,606.2
Unrealized Losses within 12 months, Unrealized Losses (1.5)
Unrealized Losses 12 months or greater, Fair Value 44.9
Unrealized Losses 12 months or greater, Unrealized Losses 0.0
Total, Fair Value 1,651.1
Total, Unrealized Losses (1.5)
Commercial paper  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Unrealized Losses within 12 months, Fair Value 9.9
Unrealized Losses within 12 months, Unrealized Losses 0.0
Unrealized Losses 12 months or greater, Fair Value 0.0
Unrealized Losses 12 months or greater, Unrealized Losses 0.0
Total, Fair Value 9.9
Total, Unrealized Losses 0.0
U.S. government notes  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Unrealized Losses within 12 months, Fair Value 260.8
Unrealized Losses within 12 months, Unrealized Losses 0.0
Unrealized Losses 12 months or greater, Fair Value 15.0
Unrealized Losses 12 months or greater, Unrealized Losses 0.0
Total, Fair Value 275.8
Total, Unrealized Losses 0.0
Corporate bonds  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Unrealized Losses within 12 months, Fair Value 857.7
Unrealized Losses within 12 months, Unrealized Losses (0.9)
Unrealized Losses 12 months or greater, Fair Value 29.9
Unrealized Losses 12 months or greater, Unrealized Losses 0.0
Total, Fair Value 887.6
Total, Unrealized Losses (0.9)
Municipal bonds  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Unrealized Losses within 12 months, Fair Value 4.7
Unrealized Losses within 12 months, Unrealized Losses 0.0
Unrealized Losses 12 months or greater, Fair Value 0.0
Unrealized Losses 12 months or greater, Unrealized Losses 0.0
Total, Fair Value 4.7
Total, Unrealized Losses 0.0
Agency securities  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Unrealized Losses within 12 months, Fair Value 473.1
Unrealized Losses within 12 months, Unrealized Losses (0.6)
Unrealized Losses 12 months or greater, Fair Value 0.0
Unrealized Losses 12 months or greater, Unrealized Losses 0.0
Total, Fair Value 473.1
Total, Unrealized Losses $ (0.6)
v3.25.4
Fair Value Measurements - Investment by Maturity Dates (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Fair Value Disclosures [Abstract]  
Due in 1 year or less $ 3,267.4
Due in 1 year through 3 years 5,511.7
Total marketable securities $ 8,779.1
v3.25.4
Financial Statements Details - Inventories (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Inventories    
Raw materials $ 611.2 $ 565.4
Finished goods 1,635.9 1,269.2
Total inventories 2,247.1 1,834.6
Inventory [Line Items]    
Finished goods 1,635.9 1,269.2
Evaluation Inventory    
Inventories    
Finished goods 403.7 422.1
Inventory [Line Items]    
Finished goods $ 403.7 $ 422.1
v3.25.4
Financial Statements Details - Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Balance Sheet Components [Abstract]    
Deferred cost of goods sold $ 1,197.0 $ 291.3
Other prepaid expenses and deposits 313.0 341.0
Total prepaid expenses and other current assets $ 1,510.0 $ 632.3
v3.25.4
Financial Statements Details - Property and Equipment, Net (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 451.8 $ 318.2  
Less: accumulated depreciation (248.7) (219.4)  
Property and equipment, net 203.1 98.8  
Depreciation 30.9 34.0 $ 31.7
Land      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 47.3 47.2  
Equipment and machinery      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 188.3 160.7  
Computer hardware and software      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 66.2 63.9  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 3.7 3.5  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 38.4 34.7  
Construction-in-process      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 107.9 $ 8.2  
v3.25.4
Financial Statements Details - Contract Liabilities (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Change in Contract with Customer, Liability [Roll Forward]    
Contract liabilities, beginning balance $ 160.8 $ 133.2
Less: Revenue recognized from beginning balance (63.1) (58.3)
Add: Contract liabilities recognized 152.4 85.9
Contract liabilities, ending balance 250.1 160.8
Other Current Liabilities    
Change in Contract with Customer, Liability [Roll Forward]    
Contract liabilities, beginning balance 65.7  
Contract liabilities, ending balance $ 114.0 $ 65.7
v3.25.4
Financial Statements Details - Deferred Revenue (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Change in Contract with Customer, Liability [Roll Forward]    
Deferred revenue, beginning balance $ 2,791.4 $ 1,506.2
Less: Revenue recognized from beginning balance (1,691.5) (860.2)
Add: Deferral of revenue in current period, excluding amounts recognized during the period 4,272.5 2,145.4
Deferred revenue, ending balance $ 5,372.4 $ 2,791.4
v3.25.4
Financial Statements Details - Performance Obligations (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation including contract liabilities, deferred revenue and other performance obligations, amount $ 6,100.0
Product  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount 227.6
Unbilled Revenues  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount 275.5
Unbilled Revenues | Product  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 503.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligation, percentage (as a percent) 90.00%
Performance obligation, period (in years) 2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligation, percentage (as a percent) 10.00%
Performance obligation, period (in years) 3 years
v3.25.4
Financial Statements Details - Other Income, Net (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other income (expense), net:      
Interest income $ 383.4 $ 311.0 $ 152.4
Other income (expense) 10.2 9.5 12.3
Total other income, net $ 393.6 $ 320.5 $ 164.7
v3.25.4
Acquisition, Goodwill and Acquisition-Related Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]        
Intangible asset, accumulated amortization   $ 41.6 $ 26.8 $ 33.4
VeloCloud        
Finite-Lived Intangible Assets [Line Items]        
Total consideration transferred $ 300.0      
Intangible assets acquired 268.4      
Goodwill acquired 148.0      
Net tangible liabilities assumed $ 116.4      
v3.25.4
Acquisition, Goodwill and Acquisition-Related Intangible Assets - Acquisition-Related Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Remaining Useful Life (in years) 5 years 3 months 18 days  
Finite-Lived Intangible Assets, Gross $ 490.3 $ 221.9
Accumulated Amortization (201.5) (159.9)
Total $ 288.8 62.0
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Remaining Useful Life (in years) 4 years  
Finite-Lived Intangible Assets, Gross $ 241.1 154.9
Accumulated Amortization (139.0) (119.2)
Total $ 102.1 35.7
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Remaining Useful Life (in years) 6 years 2 months 12 days  
Finite-Lived Intangible Assets, Gross $ 224.3 54.6
Accumulated Amortization (48.9) (29.5)
Total $ 175.4 25.1
Trade name    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Remaining Useful Life (in years) 4 years 6 months  
Finite-Lived Intangible Assets, Gross $ 24.9 12.4
Accumulated Amortization (13.6) (11.2)
Total $ 11.3 $ 1.2
v3.25.4
Acquisition, Goodwill and Acquisition-Related Intangible Assets - Amortization Expense (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]    
2026 $ 61.3  
2027 57.4  
2028 54.0  
2029 and thereafter 116.1  
Total $ 288.8 $ 62.0
v3.25.4
Commitments and Contingencies (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Long-term Purchase Commitment [Line Items]    
Non-cancelable purchase commitments $ 6,800.0  
Non-cancellable purchase commitments, due in next twelve months 6,300.0  
Non-cancellable purchase commitments, due after twelve months 500.0  
Lease payment obligations 90.5  
Lease payment obligations payable within one year 22.1  
Prepaid Expenses and Other Current Assets    
Long-term Purchase Commitment [Line Items]    
Restricted deposits 53.0 $ 95.8
Minimum    
Long-term Purchase Commitment [Line Items]    
Estimated capital expenditures 170.0  
Maximum    
Long-term Purchase Commitment [Line Items]    
Estimated capital expenditures $ 195.0  
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Jan. 01, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
May 31, 2025
Apr. 17, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Aggregate purchase price   $ 1,603.1 $ 423.6      
Common stock, shares issued (in shares)   1,256,500,000 1,261,300,000      
Options granted (in shares)   0 0 0    
Aggregate intrinsic value of options exercised   $ 211.0 $ 495.1 $ 525.3    
Option            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Fair value of options vested   0.0 $ 5.6 $ 8.7    
Unrecognized compensation expense   $ 1,500.0        
Weighted average period (in years)   4 years 3 months 18 days        
RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
RSUs granted (in dollars per share)   $ 103.34 $ 72.61 $ 39.49    
Fair value of RSUs vested   $ 310.1 $ 251.8 $ 225.5    
2014 Employee Stock Purchase Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Percent of shares outstanding to increase number of shares available for grant and issuance (as a percent) 1.00%          
Maximum increase of number of shares available for grant (in shares)   40,000,000        
Percentage of share cost offered to eligible employees for share purchases (as a percent)   85.00%        
Offering period (in years)   2 years        
Purchase period term (in months)   6 months        
Maximum percentage of payroll deductions per employee (as a percent)   15.00%        
2014 Employee Stock Purchase Plan | Employee Stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Common stock reserved for issuance (in shares)   104,100,000        
Common stock, shares issued (in shares)   700,000        
Weighted-average grant-date fair value of options granted (in dollars per share)   $ 67.27        
Restated Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, maximum, number of outstanding stock (in shares)           52,800,000
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares)           40,200,000
Restated Plan | Option            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Common stock reserved for issuance (in shares)   45,000,000.0        
Prior Repurchase Program            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Authorized repurchase amount         $ 1,200.0  
Aggregate purchase price   $ 921.0        
New Repurchase Program            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Authorized repurchase amount         $ 1,500.0  
Aggregate purchase price   682.1        
Remaining authorized repurchase amount   $ 817.9        
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Stock Repurchase Program (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]    
Aggregate purchase price $ 1,603.1 $ 423.6
Shares repurchased (in shares) 15.9 5.5
Average price paid per share (in dollars per share) $ 100.63 $ 77.13
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Stock Option Activities (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Number of Shares Underlying Outstanding Options      
Outstanding, beginning balance (in shares) 3,100,000    
Options granted (in shares) 0 0 0
Options exercised (in shares) (2,200,000)    
Options canceled (in shares) (100,000)    
Outstanding, ending balance (in shares) 800,000 3,100,000  
Vested and exercisable (in shares) 800,000    
Weighted- Average Exercise Price per Share      
Outstanding, beginning balance (in dollars per share) $ 6.71    
Options granted (in dollars per share) 0    
Options exercised (in dollars per share) 4.10    
Options canceled (in dollars per share) 14.70    
Outstanding, ending balance (in dollars per share) 12.93 $ 6.71  
Vested and exercisable (in dollars per share) $ 12.93    
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value      
Weighted-average remaining contractual term of stock options outstanding (in years) 2 years 8 months 12 days 1 year 6 months  
Weighted-average remaining contractual term of stock options vested and exercisable (in years) 2 years 8 months 12 days    
Aggregate intrinsic value of stock options outstanding $ 93.3 $ 320.9  
Aggregate intrinsic value of stock options outstanding vested and exercisable $ 93.3    
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Restricted Stock Unit (RSU) Activities (Details) - RSUs - $ / shares
shares in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Number of Shares      
Unvested beginning balance (in shares) 28.6    
RSUs granted (in shares) 10.7    
RSUs vested (in shares) (8.6)    
RSUs forfeited/canceled (in shares) (2.6)    
Unvested ending balance (in shares) 28.1 28.6  
Weighted- Average Grant Date Fair Value Per Share      
Unvested beginning balance (in dollars per share) $ 45.46    
RSUs granted (in dollars per share) 103.34 $ 72.61 $ 39.49
RSUs vested (in dollars per share) 37.98    
RSUs forfeited/canceled (in dollars per share) 51.48    
Unvested ending balance (in dollars per share) $ 69.81 $ 45.46  
v3.25.4
Stockholders' Equity and Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation $ 439.2 $ 355.4 $ 296.8
Cost of revenue      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation 26.9 15.8 12.8
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation 260.7 211.8 172.2
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation 104.1 78.8 71.1
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation $ 47.5 $ 49.0 $ 40.7
v3.25.4
Net Income Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net income $ 3,511.4 $ 2,852.1 $ 2,087.3
Net income $ 3,511.4 $ 2,852.1 $ 2,087.3
Basic weighted-average shares outstanding (in shares) 1,258.0 1,256.3 1,237.4
Add weighted-average effects of dilutive securities:      
Employee equity awards (in shares) 17.7 24.8 31.1
Diluted weighted-average shares outstanding (in shares) 1,275.7 1,281.1 1,268.5
Net income per share:      
Basic (in dollars per share) $ 2.79 $ 2.27 $ 1.69
Diluted (in dollars per share) $ 2.75 $ 2.23 $ 1.65
v3.25.4
Net Income Per Share - Antidilutive Securities Excluded from Earnings Per Share (Details) - shares
shares in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Employee equity awards (in shares) 1.2 0.3 1.0
v3.25.4
Income Taxes - Geographical Breakdown Income before Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Domestic $ 3,369.6 $ 2,635.6 $ 1,977.7
Foreign 880.1 629.5 444.3
Income before income taxes $ 4,249.7 $ 3,265.1 $ 2,422.0
v3.25.4
Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current provision for income taxes:      
Federal $ 785.3 $ 751.3 $ 574.4
State 142.9 114.7 106.9
Foreign 122.1 39.8 24.2
Total current 1,050.3 905.8 705.5
Deferred tax expense (benefit):      
Federal (294.1) (504.7) (372.3)
State (46.8) (42.8) (41.1)
Foreign 28.9 54.7 42.6
Total deferred tax expense (benefit) (312.0) (492.8) (370.8)
Total provision for income taxes $ 738.3 $ 413.0 $ 334.7
v3.25.4
Income Taxes - Effective Income Tax Reconciliation 2025 (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. federal statutory income tax rate $ 892.4    
State tax, net of federal benefit 76.3    
Other 12.6    
Enactment of New Tax Laws 22.6    
Effect of Cross Border Tax Laws      
Net Controlled Foreign Corporation Tested Income (32.6)    
Other 2.3    
Tax Credits      
Research and Development Tax Credit (54.8)    
Nontaxable or Nondeductible Items      
Stock-Based Compensation (123.9)    
Other 1.2    
Changes in Unrecognized Tax Benefits (11.0)    
Total provision for income taxes $ 738.3 $ 413.0 $ 334.7
Percent      
U.S. federal statutory income tax rate 21.00% 21.00% 21.00%
State tax, net of federal benefit 1.80% 1.75% 2.13%
Taxes on foreign earnings differential   (2.38%) (1.96%)
Other 0.30% 0.03% (0.03%)
Enactment of New Tax Laws 0.53%    
Effect of Cross Border Tax Laws      
Net Controlled Foreign Corporation Tested Income (0.77%)    
Other 0.05%    
Tax Credits      
Research and Development Tax Credit (1.29%)    
Nontaxable or Nondeductible Items      
Stock-Based Compensation (2.91%) (4.96%) (4.59%)
Other 0.02%    
Changes in Unrecognized Tax Benefits (0.26%)    
Total Provision for Income Taxes 17.37% 12.65% 13.81%
Ireland      
Amount      
Statutory tax rate difference $ (45.4)    
Percent      
Taxes on foreign earnings differential (1.07%)    
Other jurisdictions      
Amount      
Statutory tax rate difference $ (1.4)    
Percent      
Taxes on foreign earnings differential (0.03%)    
v3.25.4
Income Taxes - Effective Income Tax Reconciliation 2024 and 2023 (Details)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
U.S. federal statutory income tax rate 21.00% 21.00% 21.00%
State tax, net of federal benefit 1.80% 1.75% 2.13%
Taxes on foreign earnings differential   (2.38%) (1.96%)
Tax credits   (2.79%) (2.74%)
Stock-Based Compensation (2.91%) (4.96%) (4.59%)
Other 0.30% 0.03% (0.03%)
Total Provision for Income Taxes 17.37% 12.65% 13.81%
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Line Items]        
Excess tax benefits resulting from stock awards $ 159,200,000 $ 212,300,000 $ 151,200,000  
Valuation allowance 195,800,000 179,800,000    
Unrecognized tax benefits 191,700,000 181,500,000 163,300,000 $ 137,400,000
Unrecognized tax benefits that would affect effective tax rate 100,700,000 103,400,000 $ 90,000,000.0  
Accrued interest and penalties 0 $ 0    
Domestic Tax Jurisdiction        
Income Tax Disclosure [Line Items]        
Operating loss carryforwards 210,100,000      
State and Local Jurisdiction        
Income Tax Disclosure [Line Items]        
Operating loss carryforwards 120,500,000      
Tax credit carryforward 257,200,000      
Valuation allowance $ 195,800,000      
v3.25.4
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Intangible assets $ 244.9 $ 273.9
Reserves and accruals not currently deductible 146.4 135.2
Deferred revenue 1,130.8 566.3
Tax credits 134.0 130.2
Lease financing obligation 17.7 13.7
Capitalized research and development expenses 417.0 634.5
Stock-based compensation 53.4 38.6
Net operating losses 19.7 25.9
Other 2.8 3.6
Gross deferred tax assets 2,166.7 1,821.9
Valuation allowance (195.8) (179.8)
Total deferred tax assets 1,970.9 1,642.1
Deferred tax liabilities:    
US tax on foreign earnings (167.5) (189.8)
Right of use asset (15.7) (11.6)
Other (14.1) (0.3)
Total deferred tax liabilities (197.3) (201.7)
Net deferred tax assets $ 1,773.6 $ 1,440.4
v3.25.4
Income Taxes - Income Taxes Paid (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Effective Income Tax Rate Reconciliation [Line Items]  
U.S. Federal $ 808.0
State:  
Other 175.2
Foreign:  
Foreign subtotal: 112.7
Total cash paid for income taxes (net of refunds) 1,095.9
Ireland  
Foreign:  
Foreign subtotal: 90.3
Other  
Foreign:  
Foreign subtotal: $ 22.4
v3.25.4
Income Taxes - Uncertain Tax Positions (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Gross unrecognized tax benefits—beginning balance $ 181.5 $ 163.3 $ 137.4
Increases related to tax positions taken in a prior year 8.2 0.3 4.7
Increases related to tax positions taken during current year 20.0 52.7 39.9
Decreases related to tax positions taken in a prior year (2.6) (8.6) (0.5)
Decreases related to lapse of statute of limitations (15.4) (26.0) (18.2)
Decreases related to settlements with taxing authorities 0.0 (0.2) 0.0
Gross unrecognized tax benefits—ending balance $ 191.7 $ 181.5 $ 163.3
v3.25.4
Segment and Geographical Information (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting [Abstract]      
Number of reportable segments | segment 1    
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 9,005.7 $ 7,003.1 $ 5,860.2
Long lived assets 203.1 98.8  
Americas      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 7,122.1 5,729.0 4,651.2
Europe, Middle East and Africa      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 1,070.3 713.2 671.0
Asia Pacific      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 813.3 560.9 538.0
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 7,063.8 5,663.0 $ 4,541.5
Long lived assets 184.8 83.5  
International      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Long lived assets $ 18.3 $ 15.3