Arista Networks vs. IBM: Comparing Quarterly Revenue Trends Between These Artificial Intelligence Giants

Robert Izquierdo, The Motley Fool

Sun, September 6, 2026 at 10:32 PM GMT+3 4 min read

Arista Networks: Steady and Reliable Quarterly Revenue Expansion

Arista Networks (NYSE:ANET) primarily generates its operating income by designing advanced cloud networking solutions, delivering specialized high-performance switching hardware, and providing extensive post-contract technical support to major internet companies and global financial services organizations.

While launching new hardware platforms for data centers and simultaneously expanding its enterprise security portfolio during the summer of 2026, it reported a 45% operating margin for the quarter ended June 30, 2026.

International Business Machines: Highly Volatile and Cyclical Revenue Patterns

International Business Machines (NYSE:IBM) earns a majority of its incoming cash by supplying complex hybrid cloud software ecosystems, developing enterprise server infrastructure, and delivering specialized business transformation consulting services to clients across the globe.

It faced multiple securities fraud investigations regarding its public business deal outlook and completed the acquisition of HRL Laboratories in the summer of 2026 to advance its work in quantum computing. It generated a 15% operating margin for the quarter ended June 30, 2026.

Why Tracking Revenue Matters for Investors

Revenue assists everyday investors understand whether a business is successfully attracting new clients and expanding its broader operational footprint. It serves as a starting point to help investors understand the total amount of money a business brings in before deducting any operational expenses.

Comparing Quarterly Revenue for Arista Networks and International Business Machines

Data source: Company filings. Data as of Sept. 4, 2026.

Foolish Take

The revenue trends for Arista Networks and IBM tell a starkly different story about the trajectories of these businesses benefiting from the massive artificial intelligence tailwind. The former has the advantage as companies rush to build out the data center computing infrastructure required to operate AI systems. This has allowed Arista to experience consistent upward sales growth every quarter, and the trend is poised to continue in Q3, with the company forecasting revenue to hit $3.3 billion.

Meanwhile, IBM has exhibited quarterly revenue volatility. This is a result of its business model, due to a mix of software, hardware, and consulting services. Big Blue's infrastructure segment, which sells mainframes, follows an upgrade cycle, and that division saw a 7% year-over-year Q2 sales decline, suggesting customer upgrades are complete for now. Also, Q2 revenue in its consulting division was flat year over year, as this area is highly variable in terms of customer spending.

IBM cut its 2026 full-year sales forecast as customers shifted spending toward businesses such as Arista, prioritizing AI data center buildouts amid concerns of supply shortages. Its HRL Laboratories acquisition points to the company betting on quantum computers to galvanize future growth. This segment of its business holds the promise of revolutionizing the computing industry.

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Robert Izquierdo has positions in Arista Networks and International Business Machines. The Motley Fool has positions in and recommends Arista Networks and International Business Machines. The Motley Fool has a disclosure policy.

Arista Networks vs. IBM: Comparing Quarterly Revenue Trends Between These Artificial Intelligence Giants was originally published by The Motley Fool