Arista Networks, Inc. (ANET) Earnings History
Arista Networks, Inc. - Q4 2025 EarningsBeat
EXECUTIVE SUMMARY
Arista Networks demonstrated strong performance in Q4 2025, exceeding revenue and net income milestones, driven by robust growth in AI networking and campus expansion. The company achieved significant year-over-year revenue growth and maintained healthy operating margins, positioning itself for continued expansion in 2026.
POSITIVE HIGHLIGHTS
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Revenue of $2.488 billion, an increase of 7.8% compared to the third quarter of 2025, and an increase of 28.9% from the fourth quarter of 2024.
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GAAP net income of $955.8 million, or $0.75 per diluted share, an increase from $0.62 per diluted share in Q4 2024.
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Full year revenue of $9.006 billion, an increase of 28.6% compared to fiscal year 2024.
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Non-GAAP operating margin of 47.5% in Q4 2025, an increase from 47.0% in Q4 2024.
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CONCERNS & RISKS
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GAAP gross margin of 62.9% in Q4 2025, a decrease from 63.8% in Q4 2024.
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Inventories increased by $412.5 million year-over-year, outpacing sales growth.
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Accounts receivable, net increased by $746.4 million year-over-year, potentially indicating slower collections.
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Deferred revenue increased significantly by $2,275.3 million year-over-year, indicating a large portion of future revenue is already booked but not yet recognized.
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FINANCIAL METRICS
MARGIN ANALYSIS
Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
MANAGEMENT GUIDANCE
Q1 2026
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
EARNINGS CALL —
CALL GUIDANCE — Q4 2025 2025
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| revenue | approximately $11.25 billion | FY2026 | — | — |
| campus revenue | $1.25 billion | FY2026 | — | — |
| AI center revenue | $3.25 billion | FY2026 | — | — |
| gross margin | 62-64% | FY2026 | — | — |
| operating margin | approximately 46% | FY2026 | — | — |
| revenue | approximately $2.6 billion | Q1 FY2026 | — | — |
| gross margin | 62-63% | Q1 FY2026 | — | — |
| operating margin | approximately 46% | Q1 FY2026 | — | — |
MANAGEMENT COMMENTARY
2025 was the year of validation of our Arista 2.0 momentum, as we hit the milestone of shipping a cumulative of 150 million ports.
We exceeded both our AI networking and campus expansion goals, delivering profitable growth and revenue of $9 billion.
Our Q4 results underscore the strong operating leverage inherent in our model, providing a powerful exit rate as we head into 2026.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
OPERATIONAL METRICS
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.