ANET
Arista Networks, Inc.126.13
+0.24+0.19%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Memory woes prompt price hikes
Q&A elaborated on worsening memory shortages and supply constraints, with management signaling potential price hikes on memory-intensive SKUs after absorbing costs in 2025, even as 2026 guidance holds at $11.25B revenue. Variables like acceptance criteria and shipping could limit one or two new 10% customers to high single digits. AMD now drives 20-25% of deployments; three of four large AI customers passed 100k GPUs, but scale-up production eyes 2027. Neo clouds show AI pivot but warrant caution. Deferred revenue remains lumpy. Memory is now the new gold. Bulls stay confident, watching supply fulfillment for AI doubling to $3.25B.
Key Stats
Market Cap
158.83BP/E (TTM)
47.78Basic EPS (TTM)
2.64Dividend Yield
0%Recent Filings
10-K
FY2025 results
Arista Networks crushed FY2025 with revenue jumping 28.6% y/y to $9.0B, fueled by robust demand for AI and cloud networking platforms—product sales soared 28.8% while services grew 27.7%. Q4 momentum shone through, powering the year's haul amid customer trials and acceptance delays that swelled deferred revenue to $5.4B; gross margins held rock-steady at 64.1% despite supply volatility. R&D surged 24% to back AI innovations like Etherlink, while $1.6B in buybacks signaled confidence—$818M remains authorized. Cash pile hit $10.7B after $4.4B operating cash flow. Yet customer concentration risks loom large.
8-K
Q4 revenue $2.5B, FY $9B
Arista Networks reported Q4 revenue of $2.488 billion, up 28.9% year-over-year, and full-year revenue of $9.006 billion, up 28.6%. GAAP net income hit a record $955.8 million in Q4, with 47.5% non-GAAP operating margin (reconciled). AI and campus innovations drove growth; Q1 2026 guides $2.6 billion revenue. VeloCloud acquisition bolsters SD-WAN.
10-Q
Q3 FY2025 results
Arista Networks crushed Q3 with revenue jumping 27.5% y/y to $2.3B, driven by 25.5% product growth to $1.9B amid AI demand, while service revenue soared 38.1% y/y. Gross margin ticked up to 64.6%, operating income climbed 24.6% y/y to $978.2M, and diluted EPS rose to $0.67 from $0.58 on steady 1.3B shares. Cash from operations hit $3.1B YTD; free cash flow not disclosed in the 10-Q. Closed VeloCloud acquisition in June 2025 for $300M cash, adding $148M goodwill and $268.4M intangibles. Cash and equivalents stood at $2.3B with $7.8B marketable securities, no debt. Large customers drive most sales.
8-K
Q3 revenue $2.3B, up 28% YoY
Arista Networks posted Q3 revenue of $2.308 billion, up 27.5% year-over-year yet just 4.7% sequentially, with GAAP net income hitting $853 million. Gross margins held firm at 64.6% GAAP, 65.2% non-GAAP, fueled by AI and cloud demand. Leadership strengthened: Duda now President/CTO. Q4 guides $2.3-2.4 billion revenue. Tariffs loom large.
8-K
Arista appoints Duda President
Arista Networks appointed founder Kenneth Duda as President and Chief Technology Officer on September 5, 2025, expanding his oversight to cloud and AI systems engineering and business development. The board simultaneously amended bylaws to allow multiple presidents and updated forum selection provisions per Delaware law changes. In September 2025, Tyson Lamoreaux joined as Senior Vice President of Cloud and AI Networking, reporting to Chief Development Officer Hugh Holbrook. This bolsters Arista's AI push. No new compensation agreements disclosed.
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