Arista Networks, Inc. (ANET) Earnings History

Arista Networks, Inc. - Q4 2025 EarningsBeat

Filed at: Feb 12, 2026, 4:07 PM EST|Read from source

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

  • •

    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.

    positive
  • •

    GAAP net income of $955.8 million, or $0.75 per diluted share, an increase from $0.62 per diluted share in Q4 2024.

    positive
  • •

    Full year revenue of $9.006 billion, an increase of 28.6% compared to fiscal year 2024.

    positive
  • •

    Non-GAAP operating margin of 47.5% in Q4 2025, an increase from 47.0% in Q4 2024.

    positive

CONCERNS & RISKS

  • •

    GAAP gross margin of 62.9% in Q4 2025, a decrease from 63.8% in Q4 2024.

    attention
  • •

    Inventories increased by $412.5 million year-over-year, outpacing sales growth.

    attention
  • •

    Accounts receivable, net increased by $746.4 million year-over-year, potentially indicating slower collections.

    attention
  • •

    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.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$2.49B
+28.9%
Prior year: $1.93B
Annual (YTD)
$9.01B
N/A
Prior year: $7.00B
Net Income
Quarterly
$955.80M
+19.3%
Prior year: $801.00M
Annual (YTD)
$3.51B
N/A
Prior year: $2.85B
EPS (Diluted)
Quarterly
$0.75
+21.0%
Prior year: $0.62
Operating Income
Quarterly
$1.03B
+29.2%
Prior year: $799.60M
Annual (YTD)
$3.86B
N/A
Prior year: $2.94B
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Gross Margin
Current Quarter
62.9%
Prior Year
63.8%
YoY Change
-90 bps
Operating Margin
Current Quarter
41.5%
Prior Year
41.4%
YoY Change
+10 bps
Net Margin
Current Quarter
38.4%
Prior Year
41.5%
YoY Change
-310 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

Q1 2026

revenue
$2600000.0B—$2600000.0B
Mid-point: $2600000.0B
non-GAAP gross margin
62.0%—63.0%
Mid-point: 62.5%
non-GAAP operating margin
46.0%—46.0%
Mid-point: 46.0%

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

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.

— Arista Networks, Inc., Q4 2025 2025 Earnings Call

We exceeded both our AI networking and campus expansion goals, delivering profitable growth and revenue of $9 billion.

— Arista Networks, Inc., Q4 2025 2025 Earnings Call

Our Q4 results underscore the strong operating leverage inherent in our model, providing a powerful exit rate as we head into 2026.

— Arista Networks, Inc., Q4 2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Cumulative Ports Shipped
150.0M
ports

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.