VAR Networking Checks: Still Going Strong

研报英文原文证据摘录

VAR Networking Checks: Still Going Strong

UpdateMCompany-specific Commentary

We will issue networking previews closer to earnings dates as well.

ANET

Arista is scheduled to report Q1'26 earnings on Tuesday, August 4th, after market

close. We will issue another preview closer to report date.

ANET continues to benefit from high-speed enterprise data-center demand. One

VAR points to ~25% y/y growth in 2Q and ~26% in 3Q, while the broader checks

indicate modest sequential improvement. Demand remains concentrated in

enterprise data-center switching, where Arista continues to screen well for AI

architectures and heavier workloads given its technology, flexibility and ability to

scale at higher speeds. Near-term performance should remain anchored in high-

speed enterprise data-center demand, with campus expansion representing a

secondary source of upside.

CSCO

Cisco has not scheduled its FQ4'26 earnings yet. We will issue another preview closer

to report date.

CSCO’s strength across all three networking pillars remains the clearest positive

in our checks. One VAR cited ~11% y/y growth in 2Q and expects the same rate in

3Q, well above Cisco’s more typical 1-3% range. Data center, campus and Wi-Fi are

all contributing at the same time, an unusual outcome given Cisco typically sees

strength across only one or two pillars in a strong year. Fundamental capacity

expansion is driving the largest portion of demand, with AI providing an additional

tailwind. Cisco is also improving the integration of security into its broader portfolio,

with next-generation security increasingly included in initial solution designs. ANET

remains the strongest competitor in high-speed enterprise data center, while Aruba

and Juniper remain credible alternatives in campus and Wi-Fi, but Cisco’s portfolio