Latest news with #ChantelleBreithaupt
Yahoo
06-08-2025
- Business
- Yahoo
Why Arista Networks Stock Is Skyrocketing Wednesday
Arista Networks Inc. (NYSE:ANET) reported better-than-expected second-quarter financial results after markets closed on Tuesday. Revenues increased 30.4% year over year $2.21 billion, versus estimates of $2.11 billion and the management guidance of $2.1 billion. Adjusted EPS jumped to 73 cents from 53 cents a year ago, versus estimates of 65 cents. Gross margin was 65.2% in the second CFO, Chantelle Breithaupt, said, 'Non-GAAP operating income crossed $1 billion for the first time at Arista...' View more earnings on ANET Arista Networks expects third-quarter sales of $2.25 billion versus the consensus of $2.093 billion. Analysts' Reaction Following the impressive earnings report and upbeat guidance, several prominent financial institutions reiterated their positive stance on Arista Networks. Morgan Stanley maintained an Overweight rating, raising its price forecast from $120 to $125. Piper Sandler, while holding a Neutral rating, significantly increased its price forecast from $89 to $143. UBS and Goldman Sachs both maintained Buy ratings, lifting their price forecasts from $115 to $155. Keybanc upheld its Overweight rating, adjusting its price forecast from $115 to $145, while Evercore ISI Group maintained an Outperform rating, raising its forecast from $120 to $150. Needham also maintained a Buy rating, increasing its price forecast from $130 to $155. Price Action: ANET stock is trading higher by 18.1% to $139.50 at last check Wednesday. Read Next:Photo via Shutterstock Latest Ratings for ANET Date Firm Action From To Mar 2022 Wells Fargo Upgrades Equal-Weight Overweight Feb 2022 Morgan Stanley Maintains Equal-Weight Feb 2022 Wells Fargo Maintains Equal-Weight View More Analyst Ratings for ANET View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? ARISTA NETWORKS (ANET): Free Stock Analysis Report This article Why Arista Networks Stock Is Skyrocketing Wednesday originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
05-08-2025
- Business
- Business Wire
Arista Networks, Inc. Reports Second Quarter 2025 Financial Results
SANTA CLARA, Calif.--(BUSINESS WIRE)--Arista Networks, Inc. (NYSE: ANET), an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments, today announced financial results for its second quarter ended June 30, 2025. Second Quarter Financial Highlights 'Arista is well-positioned in data-driven AI networking, from client to cloud," said Jayshree Ullal, Chairperson and CEO of Arista Networks. 'Our customers are decisively standardizing on our best of breed platform to bring transformational innovation and impact to their technology endeavors.' Revenue of $2.205 billion, an increase of 10.0% compared to the first quarter of 2025, and an increase of 30.4% from the second quarter of 2024. GAAP gross margin of 65.2%, compared to GAAP gross margin of 63.7% in the first quarter of 2025 and 64.9% in the second quarter of 2024. Non-GAAP gross margin of 65.6%, compared to non-GAAP gross margin of 64.1% in the first quarter of 2025 and 65.4% in the second quarter of 2024. GAAP net income of $888.8 million, or $0.70 per diluted share, compared to GAAP net income of $665.4 million, or $0.52 per diluted share in the second quarter of 2024. Non-GAAP net income of $923.5 million, or $0.73 per diluted share, compared to non-GAAP net income of $672.6 million, or $0.53 per diluted share in the second quarter of 2024. Commenting on the company's financial results, Chantelle Breithaupt, Arista's CFO, said, "Non-GAAP operating income crossed $1 billion for the first time at Arista, highlighting the strength of our business model and the momentum of customer demand across our portfolio. Our ability to scale efficiently while maintaining financial discipline continues to deliver value for our shareholders." Upcoming Analyst Day Arista Networks will host its Analyst Day on Thursday, September 11, 2025, beginning at 3:00 PM PT (6:00 PM ET). Interested participants can register through the Investor Relations section of the Arista website at Company Highlights Arista Networks Expands AI-Driven Campus and Branch Networking Offerings – Arista introduced several AI-driven enterprise products that deliver an expanded set of switching, Wi-Fi 7 access point, and WAN capabilities. Arista Networks Acquired the VeloCloud® SD-WAN Portfolio from Broadcom – VeloCloud expands choice and performance for Arista customers, enabling global WAN services to interconnect data centers and distributed campus/branch offices, while complementing Arista's existing CloudEOS® routing stack and high-end 7000-series WAN routers. Arista Networks Recognized in the Visionaries Quadrant of the 2025 Gartner® Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure published on 25 June 2025 - Gartner positioned Arista Networks as the vendor with the highest Ability to Execute in the Visionaries Quadrant in the report. Arista Expands Commitment to India for Enterprise Networking and AI Innovation – The 'Make in India' initiative drives domestic manufacturing of key campus and data center switches as well as Wi-Fi 7 access points. Arista Networks appointed Todd Nightingale as President and Chief Operating Officer - Mr. Nightingale previously served as the Chief Executive Officer and member of the Board of Directors of Fastly, Inc., and before that as the Executive Vice President and General Manager of Enterprise Networking and Cloud at Cisco Systems, Inc. Financial Outlook For the third quarter of 2025, we expect: Revenue of approximately $2.25 billion Non-GAAP gross margin of approximately 64%; and Non-GAAP operating margin of approximately 47%. Guidance for non-GAAP financial measures excludes certain items, including stock-based compensation expense, intangible asset amortization, and potential non-recurring charges or benefits. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort because these exclusions can be uncertain or difficult to predict, including stock-based compensation expense, which is impacted by the timing of employee stock transactions, the company's future hiring and retention needs and the future fair market value of the company's common stock. The actual amount of these exclusions will have a significant impact on the company's GAAP gross margin and GAAP operating margin. Prepared Materials and Conference Call Information Arista's executives will discuss the second quarter 2025 financial results on a conference call today at 1:30 PM Pacific Time. To listen to the call via telephone, dial (888) 330-2502 in the United States or +1 (240) 789-2713 from international locations. The Conference ID is 5655862. The financial results conference call will also be available via live webcast on Arista's investor relations website at Shortly after the conclusion of the conference call, a replay of the audio webcast will be available on Arista's investor relations website. Forward-Looking Statements This press release contains 'forward-looking statements' regarding our future performance, including but not limited to quotations from management, statements in the section entitled 'Financial Outlook,' such as estimates regarding revenue, non-GAAP gross margin, and non-GAAP operating margin for the third quarter of 2025, statements regarding Arista's products, innovation and ability to succeed in data-driven AI networking. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from those anticipated in or implied by the forward-looking statements including but not limited to risks associated with: escalated or escalating U.S. tariffs and countermeasures and retaliatory actions taken by affected countries; enhanced import/export restrictions, such as enhanced export controls the U.S. has adopted targeting trade with China, as well as countermeasures taken by affected countries; large purchases by a limited number of customers who represent a substantial portion of our revenue; adverse economic and geopolitical conditions and conflicts, continuing uncertain economic conditions or reduced information technology and network infrastructure spending; the impact of sole or limited sources of supply, supply shortages and extended lead times or supply changes; volatility in our revenue and revenue growth rates; variations in our results of operations; the rapid evolution of the networking market; failure to successfully carry out new products and service offerings and expand into adjacent markets; variability in our gross margins; intense competition and industry consolidation; expansion of our international sales and operations; investments in or acquisitions of other businesses, products or technologies; seasonality and industry cyclicality; fluctuations in currency exchange rates; failure to raise additional capital on favorable terms; our inability to attract new large customers or sell additional products and services to our existing customers; inability to grow sales of switches which generate most of our product revenue; large customers requiring more favorable terms; inability to increase market awareness or acceptance of our new products and services; decreases in the sales prices of our products and services; long and unpredictable sales cycles; inability to offer high quality support and services; declines in maintenance renewals by customers; product quality problems, defects, errors or vulnerabilities in our products; failure to anticipate technological shifts; the complexity of managing the supply of our products and product components; our reliance upon a predominant merchant silicon vendor; our dependence on third-party manufacturers to build our products; assertions by third parties of intellectual property rights infringement, misappropriation or other violations; failure or inability to protect or assert our intellectual property rights; cybersecurity incidents and breaches of our cybersecurity systems, or other security or privacy breaches or incidents; failure to comply with government law and regulations; issues in the development and use of artificial intelligence, combined with an uncertain regulatory environment; future decisions to reduce or discontinue repurchasing our common stock pursuant to our stock repurchase programs; and other future events. Additional risks and uncertainties that could affect us can be found in our most recent filings with the Securities and Exchange Commission, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. You can locate these reports through our website at and on the SEC's website at All forward-looking statements in this press release are based on information available to the company as of the date hereof, and we disclaim any obligation to publicly update or revise any forward-looking statement to reflect events that occur or circumstances that exist after the date on which they were made. Non-GAAP Financial Measures This press release and accompanying table contain certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted net income per share. These non-GAAP financial measures exclude stock-based compensation expense, intangible asset amortization, (gains)/losses on strategic investments, and the income tax effect of these non-GAAP exclusions. In addition, non-GAAP financial measures exclude net tax benefits associated with stock-based awards, which include excess tax benefits and other discrete indirect effects of such awards. The company uses these non-GAAP financial measures internally in analyzing its financial results and believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing operating results and trends. In addition, these measures are the primary indicators management uses as a basis for its planning and forecasting for future periods. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP financial measures. Non-GAAP financial measures are subject to limitations and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not have any standardized meaning and are, therefore, unlikely to be comparable to similarly titled measures presented by other companies. A description of these non-GAAP financial measures and a reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation. Gartner®, Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure, Mike Leibovitz et al., 25 June 2025 GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the 'Gartner Content') represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Earnings Press Release), and the opinions expressed in the Gartner Content are subject to change without notice. About Arista Networks Arista Networks is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. Its award-winning platforms deliver availability, agility, automation, analytics, and security through an advanced network operating stack. For more information, visit ARISTA, CloudVision, and Etherlink are among the registered and unregistered trademarks of Arista Networks, Inc. in jurisdictions around the world. Other company names or product names may be trademarks of their respective owners. Additional information and resources can be found at ARISTA NETWORKS, INC. Reconciliation of Selected GAAP to Non-GAAP Financial Measures (Unaudited, in millions, except percentages and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 GAAP gross profit $ 1,438.6 $ 1,097.2 $ 2,714.7 $ 2,098.6 GAAP gross margin 65.2 % 64.9 % 64.5 % 64.3 % Stock-based compensation expense 5.8 4.0 11.3 7.4 Intangible asset amortization 2.6 4.2 5.8 8.4 Non-GAAP gross profit $ 1,447.0 $ 1,105.4 $ 2,731.8 $ 2,114.4 Non-GAAP gross margin 65.6 % 65.4 % 64.9 % 64.8 % GAAP income from operations $ 986.2 $ 699.6 $ 1,845.0 $ 1,359.7 GAAP operating margin 44.7 % 41.4 % 43.8 % 41.7 % Stock-based compensation expense 85.2 79.3 178.2 156.5 Intangible asset amortization 5.0 6.7 10.6 13.4 Non-GAAP income from operations $ 1,076.4 $ 785.6 $ 2,033.8 $ 1,529.6 Non-GAAP operating margin 48.8 % 46.5 % 48.3 % 46.9 % GAAP net income $ 888.8 $ 665.4 $ 1,702.6 $ 1,303.1 Stock-based compensation expense 85.2 79.3 178.2 156.5 Intangible asset amortization 5.0 6.7 10.6 13.4 (Gains)/losses on strategic investments (5.4 ) — (10.9 ) — Tax benefits on stock-based awards (41.6 ) (64.6 ) (107.7 ) (135.3 ) Income tax effect on non-GAAP exclusions (8.5 ) (14.2 ) (23.1 ) (27.3 ) Non-GAAP net income $ 923.5 $ 672.6 $ 1,749.7 $ 1,310.4 GAAP diluted net income per share (1) $ 0.70 $ 0.52 $ 1.34 $ 1.02 Non-GAAP adjustments to net income (1) 0.03 0.01 0.03 — Non-GAAP diluted net income per share (1) $ 0.73 $ 0.53 $ 1.37 $ 1.02 Weighted-average shares used in computing diluted net income per share (1) 1,271.2 1,279.7 1,275.2 1,279.6 Summary of Stock-Based Compensation Expense: Cost of revenue $ 5.8 $ 4.0 $ 11.3 $ 7.4 Research and development 53.2 50.7 110.2 94.5 Sales and marketing 18.8 16.8 38.7 35.7 General and administrative 7.4 7.8 18.0 18.9 Total $ 85.2 $ 79.3 $ 178.2 $ 156.5 (1) Prior period results have been adjusted to reflect the four-for-one stock split effected in December 2024. Expand ARISTA NETWORKS, INC. Condensed Consolidated Balance Sheets (Unaudited, in millions) December 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,225.5 $ 2,762.4 Marketable securities 6,618.9 5,541.1 Accounts receivable 1,623.6 1,140.5 Inventories 2,059.1 1,834.6 Prepaid expenses and other current assets 976.4 632.3 Total current assets 13,503.5 11,910.9 Property and equipment, net 152.3 98.8 Goodwill 416.5 268.5 Deferred tax assets 1,802.5 1,440.4 Other assets 659.4 325.3 TOTAL ASSETS $ 16,534.2 $ 14,043.9 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 543.9 $ 381.1 Accrued liabilities 380.7 435.3 Deferred revenue 2,787.6 1,727.3 Other current liabilities 339.2 188.5 Total current liabilities 4,051.4 2,732.2 Deferred revenue, non-current 1,274.1 1,064.1 Other long-term liabilities 307.1 252.8 TOTAL LIABILITIES 5,632.6 4,049.1 STOCKHOLDERS' EQUITY: Common stock 0.1 0.1 Additional paid-in capital 2,635.6 2,465.4 Retained earnings 8,262.1 7,542.5 Accumulated other comprehensive income (loss) 3.8 (13.2 ) TOTAL STOCKHOLDERS' EQUITY 10,901.6 9,994.8 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 16,534.2 $ 14,043.9 Expand ARISTA NETWORKS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited, in millions) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,702.6 $ 1,303.1 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other 26.6 31.1 Stock-based compensation 178.2 156.5 Deferred income taxes (337.9 ) (228.5 ) Other (21.0 ) (18.5 ) Changes in operating assets and liabilities: Accounts receivable, net (483.1 ) (202.2 ) Inventories (224.5 ) 91.4 Other assets (403.2 ) (92.6 ) Accounts payable 160.0 (136.2 ) Deferred revenue 1,141.4 612.6 Income taxes, net 152.4 74.1 Other liabilities (49.7 ) (88.0 ) Net cash provided by operating activities 1,841.8 1,502.8 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from maturities of marketable securities 1,651.2 952.6 Proceeds from sale of marketable securities 15.9 36.8 Purchases of marketable securities (2,705.7 ) (1,749.3 ) Purchases of property and equipment (52.4 ) (12.6 ) Cash paid for business combinations, net of cash acquired (300.0 ) — Other — (1.0 ) Net cash used in investing activities (1,391.0 ) (773.5 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock under equity plans 31.3 34.5 Tax withholding paid on behalf of employees for net share settlement (39.3 ) (36.0 ) Repurchases of common stock (983.0 ) (234.7 ) Net cash used in financing activities (991.0 ) (236.2 ) Effect of exchange rate changes 3.3 (2.7 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (536.9 ) 490.4 CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period 2,763.8 1,939.5 CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period $ 2,226.9 $ 2,429.9 Expand
Yahoo
07-05-2025
- Business
- Yahoo
Arista's Sales, EPS Surge; Stock Slumps
Key Points Arista saw solid growth in revenue and earnings during the first quarter, with quarterly sales topping the $2 billion mark for the first time. CEO Jayshree Ullal noted that artificial intelligence, cloud computing, and enterprise customers are playing key roles in driving Arista's success. The move lower for the stock seemed to stem from a wish for even better performance and guidance for the second quarter. 10 stocks we like better than Arista Networks › Here's our initial take on Arista Networks' (NYSE: ANET) first-quarter financial report. Key Metrics Metric Q1 2024 Q1 2025 Change vs. Expectations Total revenue $1.57 billion $2.00 billion +28% Beat Adjusted earnings per share $0.50 $0.65 +30% Beat Adjusted gross margin 64.2% 64.1% -0.1 pp n/a Adjusted operating margin 47.4% 47.8% +0.4 pp n/a Arista Reaches a Milestone Arista's first-quarter financial report was cause for celebration as far as the company was concerned. Revenue inched just above $2 billion for the first time ever, growing 28% from the same period a year earlier. Solid margin performance helped the company boost its adjusted earnings to $0.65 per share, 30% higher than in the year-earlier period. AI and other technological advances played their part in pushing Arista higher. The company highlighted its recent advanced AI capabilities to help make AI-enhanced networks more productive, ensuring reduced latency, better troubleshooting, and maximized workload performance. Just about the only potential negative was in Arista's guidance. Revenue of $2.1 billion would be slightly higher than what most investors were looking to see. However, calls for gross margin and operating margin to decline slightly from first-quarter levels might have been a disappointment. Immediate Market Reaction Perhaps because of that guidance, shares of Arista fell about 7% in the first hour of trading following the release of the report in Tuesday's after-hours trading session. Given that the stock hasn't performed terribly well during 2025 on the whole, many investors would have hoped for a more positive response to the results. Indeed, CFO Chantelle Breithaupt lauded Arista's strong business execution in generating such good performance. What to Watch It's consistent with Arista's view that the share price isn't fairly reflecting the company's potential that the volume of stock buybacks has risen substantially. Breithaupt noted that the $787 million in repurchases in the first quarter marked the highest level of stock repurchases in Arista's history. Moreover, the Arista board authorized another $1.5 billion for future buybacks. That could open the door for even more repurchase activity going forward -- particularly if the stock keeps losing ground despite what Arista sees as good long-term prospects for the business.
Yahoo
06-05-2025
- Business
- Yahoo
Arista Networks, Inc. Reports First Quarter 2025 Financial Results
Arista Networks Recognized in the Leaders Quadrant of the 2025 Gartner® Magic Quadrant™ for Data Center Switching, published on March 31, 2025 - Gartner positioned Arista Networks as the vendor with the highest ability to execute in the report. Arista introduces intelligent innovations for AI networking – Arista introduced advanced capabilities to maximize AI cluster performance and efficiency. Cluster Load Balancing (CLB) in Arista EOS ® maximizes AI workload performance with consistent, low-latency network flows, while Arista CloudVision® Universal Network Observability™ (CV UNO™) now offers AI job-centric observability for enhanced troubleshooting and rapid issue inference, ensuring job completion reliability at scale. In May 2025, Arista's Board of Directors authorized an additional program to repurchase up to $1.5 billion. The actual timing and amount of repurchases will be dependent on market and business conditions, capital requirements, stock price, acquisition opportunities and other factors. Commenting on the company's financial results, Chantelle Breithaupt, Arista's CFO, said, "With a continued focus on execution, Arista maintained its financial performance of delivering both strong growth and profitability. In Q1 2025, we also completed the highest level of stock repurchases in Arista's history, quarterly or annually, at $787M, reflecting our strong conviction in the long-term value of the business." Non-GAAP net income of $826.2 million, or $0.65 per diluted share, compared to non-GAAP net income of $637.7 million, or $0.50 per diluted share in the first quarter of 2024. GAAP net income of $813.8 million, or $0.64 per diluted share, compared to GAAP net income of $637.7 million, or $0.50 per diluted share in the first quarter of 2024. Non-GAAP gross margin of 64.1%, compared to non-GAAP gross margin of 64.2% in the fourth quarter of 2024 and 64.2% in the first quarter of 2024. GAAP gross margin of 63.7%, compared to GAAP gross margin of 63.8% in the fourth quarter of 2024 and 63.7% in the first quarter of 2024. Revenue of $2.005 billion, an increase of 3.9% compared to the fourth quarter of 2024 and an increase of 27.6% from the first quarter of 2024. "As we enter 2025, AI, cloud, and enterprise customers continue to drive network transformation. We surpassed $2B in revenue for the first time in Q1 2025 despite the unknowns around tariffs," stated Jayshree Ullal, Chairperson and CEO of Arista Networks. "Arista's trifecta of innovation, growth, and profitability is reflected in our results." SANTA CLARA, Calif., May 06, 2025 --( BUSINESS WIRE )--Arista Networks, Inc. (NYSE: ANET), an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments, today announced financial results for its first quarter ended March 31, 2025. Story Continues Financial Outlook For the second quarter of 2025, we expect: Revenue of approximately $2.1 billion Non-GAAP gross margin of approximately 63%; and Non-GAAP operating margin of approximately 46%. Guidance for non-GAAP financial measures excludes certain items, including stock-based compensation expense, intangible asset amortization, and potential non-recurring charges or benefits. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort because these exclusions can be uncertain or difficult to predict, including stock-based compensation expense, which is impacted by the timing of employee stock transactions, the company's future hiring and retention needs and the future fair market value of the company's common stock. The actual amount of these exclusions will have a significant impact on the company's GAAP gross margin and GAAP operating margin. Prepared Materials and Conference Call Information Arista's executives will discuss the first quarter 2025 financial results on a conference call today at 1:30 PM Pacific time. To listen to the call via telephone, dial (888) 330-2502 in the United States or +1 (240) 789-2713 from international locations. The Conference ID is 5655862. The financial results conference call will also be available via live webcast on Arista's investor relations website at Shortly after the conclusion of the conference call, a replay of the audio webcast will be available on Arista's investor relations website. Forward-Looking Statements This press release contains "forward-looking statements" regarding our future performance, including quotations from management, statements in the section entitled "Financial Outlook," such as estimates regarding revenue, non-GAAP gross margin, and non-GAAP operating margin for the second quarter of 2025, statements regarding the benefits of Arista's products, and statements regarding Arista's innovation, growth, and profitability, and its conviction in the long-term value of the business. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from those anticipated in or implied by the forward-looking statements including risks associated with: escalated or escalating U.S. tariffs and countermeasures taken by affected countries; enhanced import/export restrictions, such as enhanced export controls the U.S. has adopted targeting trade with China, as well as countermeasures taken by affected countries; large purchases by a limited number of customers who represent a substantial portion of our revenue; adverse economic and geopolitical conditions and conflicts, continuing uncertain economic conditions or reduced information technology and network infrastructure spending; the impact of sole or limited sources of supply, supply shortages and extended lead times or supply changes; volatility in our revenue growth rate; variations in our results of operations; the rapid evolution of the networking market; failure to successfully carry out new products and service offerings and expand into adjacent markets; variability in our gross margins; intense competition and industry consolidation; expansion of our international sales and operations; investments in or acquisitions of other businesses; seasonality and industry cyclicality; fluctuations in currency exchange rates; failure to raise additional capital on favorable terms; our inability to attract new large customers or sell additional products and services to our existing customers; inability to grow sales of switches which generate most of our product revenue; large customers requiring more favorable terms; inability to increase market awareness or acceptance of our new products and services; decreases in the sales prices of our products and services; long and unpredictable sales cycles; inability to offer high quality support and services; declines in maintenance renewals by customers; product quality problems; failure to anticipate technological shifts; the complexity of managing the supply of our products and product components; our dependence on third-party manufacturers to build our products; assertions by third parties of intellectual property rights infringement; failure or inability to protect or assert our intellectual property rights; defects, errors or vulnerabilities in our products, the failure of our products to detect security breaches or incidents, the misuse of our products or the risks or product liability; breaches of our cybersecurity systems, or other security or privacy breaches or incidents; failure to comply with government law and regulations; issues in the development and use of artificial intelligence, combined with an uncertain regulatory environment; risks related to future decisions to reduce or discontinue repurchasing our common stock pursuant to our stock repurchase programs; and other future events. Additional risks and uncertainties that could affect us can be found in our most recent filings with the Securities and Exchange Commission, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. You can locate these reports through our website at and on the SEC's website at All forward-looking statements in this press release are based on information available to the company as of the date hereof, and we disclaim any obligation to publicly update or revise any forward-looking statement to reflect events that occur or circumstances that exist after the date on which they were made. Non-GAAP Financial Measures This press release and accompanying table contain certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted net income per share. These non-GAAP financial measures exclude stock-based compensation expense, intangible asset amortization, gains/losses on strategic investments, and the income tax effect of these non-GAAP exclusions. In addition, non-GAAP financial measures exclude net tax benefits associated with stock-based awards, which include excess tax benefits and other discrete indirect effects of such awards. The company uses these non-GAAP financial measures internally in analyzing its financial results and believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing operating results and trends. In addition, these measures are the primary indicators management uses as a basis for its planning and forecasting for future periods. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP financial measures. Non-GAAP financial measures are subject to limitations and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not have any standardized meaning and are, therefore, unlikely to be comparable to similarly titled measures presented by other companies. A description of these non-GAAP financial measures and a reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation. Gartner®, Magic Quadrant™ for Data Center Switching, Andrew Lerner et al., 31 March 2025 GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the "Gartner Content") represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Earnings Press Release), and the opinions expressed in the Gartner Content are subject to change without notice. About Arista Networks Arista Networks is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. Its award-winning platforms deliver availability, agility, automation, analytics, and security through an advanced network operating stack. For more information, visit ARISTA, CloudVision, and Etherlink are among the registered and unregistered trademarks of Arista Networks, Inc. in jurisdictions around the world. Other company names or product names may be trademarks of their respective owners. ARISTA NETWORKS, INC. Condensed Consolidated Income Statements (Unaudited, in millions, except per share amounts) Three Months Ended March 31, 2025 2024 Revenue: Product $ 1,692.5 $ 1,328.8 Service 312.3 242.6 Total revenue 2,004.8 1,571.4 Cost of revenue: Product 672.7 521.7 Service 56.0 48.3 Total cost of revenue 728.7 570.0 Gross profit 1,276.1 1,001.4 Operating expenses: Research and development 266.4 208.4 Sales and marketing 116.6 105.1 General and administrative 34.3 27.7 Total operating expenses 417.3 341.2 Income from operations 858.8 660.2 Other income (expense), net 96.2 62.6 Income before income taxes 955.0 722.8 Provision for income taxes 141.2 85.1 Net income $ 813.8 $ 637.7 Net income per share (1): Basic $ 0.65 $ 0.51 Diluted $ 0.64 $ 0.50 Weighted-average shares used in computing net income per share(1): Basic 1,260.0 1,252.1 Diluted 1,279.2 1,279.4 (1) Prior period results have been adjusted to reflect the four-for-one stock split effected in December 2024. ARISTA NETWORKS, INC. Reconciliation of Selected GAAP to Non-GAAP Financial Measures (Unaudited, in millions, except percentages and per share amounts) Three Months Ended March 31, 2025 2024 GAAP gross profit $ 1,276.1 $ 1,001.4 GAAP gross margin 63.7 % 63.7 % Stock-based compensation expense 5.5 3.4 Intangible asset amortization 3.2 4.2 Non-GAAP gross profit $ 1,284.8 $ 1,009.0 Non-GAAP gross margin 64.1 % 64.2 % GAAP income from operations $ 858.8 $ 660.1 GAAP operating margin 42.8 % 42.0 % Stock-based compensation expense 93.0 77.2 Intangible asset amortization 5.6 6.7 Non-GAAP income from operations $ 957.4 $ 744.0 Non-GAAP operating margin 47.8 % 47.4 % GAAP net income $ 813.8 $ 637.7 Stock-based compensation expense 93.0 77.2 Intangible asset amortization 5.6 6.7 (Gains)/losses on strategic investments (5.5 ) — Tax benefits on stock-based awards (66.1 ) (70.8 ) Income tax effect on non-GAAP exclusions (14.6 ) (13.1 ) Non-GAAP net income $ 826.2 $ 637.7 GAAP diluted net income per share (1) $ 0.64 $ 0.50 Non-GAAP adjustments to net income (1) 0.01 — Non-GAAP diluted net income per share (1) $ 0.65 $ 0.50 Weighted-average shares used in computing diluted net income per share (1) 1,279.2 1,279.4 Summary of Stock-Based Compensation Expense: Cost of revenue $ 5.5 $ 3.4 Research and development 57.0 43.8 Sales and marketing 19.9 18.9 General and administrative 10.6 11.1 Total $ 93.0 $ 77.2 (1) Prior period results have been adjusted to reflect the four-for-one stock split effected in December 2024. ARISTA NETWORKS, INC. Condensed Consolidated Balance Sheets (Unaudited, in millions) March 31, 2025 December 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,845.1 $ 2,762.4 Marketable securities 6,304.5 5,541.1 Accounts receivable 1,435.9 1,140.5 Inventories 1,957.3 1,834.6 Prepaid expenses and other current assets 733.5 632.3 Total current assets 12,276.3 11,910.9 Property and equipment, net 123.9 98.8 Acquisition-related intangible assets, net 56.4 62.0 Goodwill 268.5 268.5 Deferred tax assets 1,544.3 1,440.4 Other assets 245.2 263.3 TOTAL ASSETS $ 14,514.6 $ 14,043.9 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 389.1 $ 381.1 Accrued liabilities 263.1 435.3 Deferred revenue 2,072.7 1,727.3 Income taxes payable 249.1 50.1 Other current liabilities 147.6 138.4 Total current liabilities 3,121.6 2,732.2 Deferred revenue, non-current 1,016.1 1,064.1 Other long-term liabilities 257.8 252.8 TOTAL LIABILITIES 4,395.5 4,049.1 STOCKHOLDERS' EQUITY: Common stock 0.1 0.1 Additional paid-in capital 2,551.7 2,465.4 Retained earnings 7,569.2 7,542.5 Accumulated other comprehensive income (loss) (1.9 ) (13.2 ) TOTAL STOCKHOLDERS' EQUITY 10,119.1 9,994.8 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 14,514.6 $ 14,043.9 ARISTA NETWORKS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited, in millions) Three Months Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 813.8 $ 637.7 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other 13.8 15.6 Stock-based compensation 93.0 77.2 Deferred income taxes (107.1 ) (77.8 ) Other (12.1 ) (7.8 ) Changes in operating assets and liabilities: Accounts receivable, net (295.4 ) (65.5 ) Inventories (122.7 ) (80.0 ) Other assets (113.7 ) 38.1 Accounts payable 6.7 (207.2 ) Deferred revenue 297.4 157.0 Income taxes, net 241.3 157.5 Other liabilities (173.3 ) (131.0 ) Net cash provided by operating activities 641.7 513.8 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from maturities of marketable securities 799.2 590.4 Proceeds from sale of marketable securities 8.8 36.8 Purchases of marketable securities (1,545.5 ) (912.4 ) Purchases of property and equipment (28.4 ) (9.4 ) Other — (1.0 ) Net cash used in investing activities (765.9 ) (295.6 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock under equity plans 28.1 25.1 Tax withholding paid on behalf of employees for net share settlement (34.8 ) (25.5 ) Repurchases of common stock (787.1 ) (62.7 ) Net cash used in financing activities (793.8 ) (63.1 ) Effect of exchange rate changes 0.7 (1.6 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (917.3 ) 153.5 CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period 2,763.8 1,939.5 CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period $ 1,846.5 $ 2,093.0 View source version on Contacts Investor Contacts: Arista Networks, Inc. Investor Advocacy Rudolph Araujo Rod Hall +1 (408) 547-8080 ir@
