We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arista Beats Q2 Earnings Estimates on Healthy Top-Line Growth
Read MoreHide Full Article
Key Takeaways
{\"0\":\"ANET\'s Q2 revenue rose to $2.2B, beating estimates and up from $1.69B a year earlier.\",\"1\":\"Non-GAAP EPS hit $0.73, topping consensus by $0.08 on strong product and service performance.\",\"2\":\"Operating income surged to $1.08B, fueled by margin gains and disciplined cost management.\"}
Arista Networks, Inc. (ANET - Free Report) reported strong second-quarter 2025 results, with revenues and adjusted earnings soaring year over year, driven by robust demand trends. Innovative product launches and steady customer additions backed by the company’s best-in-class portfolio strength led to top-line expansion, while steady margin improvement contributed to earnings growth. Both the bottom and the top lines beat the respective Zacks Consensus Estimate.
Net Income
GAAP net income in the reported quarter improved to $888.8 million or 70 cents per share from $665.4 million or 52 cents per share in the year-ago quarter, propelled by higher revenues.
On a non-GAAP basis, net income was $923.5 million or 73 cents per share compared with $672.6 million or 53 cents per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate by 8 cents.
Arista Networks, Inc. Price, Consensus and EPS Surprise
Revenues surged to $2.2 billion from $1.69 billion in the prior-year quarter, driven by strength across the product portfolio. The company introduced various solutions for cloud, Internet service providers and enterprise networks to meet the rising demands of AI/ML-driven network architectures. These innovations enabled Arista to deliver a superior customer experience and increase customer engagement. The top line beat the consensus estimate of $2.11 billion.
Net quarterly sales from Products totaled $1.88 billion compared with $1.42 billion in the year-ago quarter. Service revenues increased to $327.8 million from $267.1 million. Arista witnessed positive demand trends owing to its strong product portfolio, which is highly scalable, programmable and provides data-driven automation, analytics and world-class support services.
Net sales from the Americas contributed 78.2% to total revenues, while international revenues accounted for the remainder. Driven by its relentless pursuit of innovative products, Arista maintains a strong leadership position in the Data Center and Cloud Networking vertical.
Other Details
Non-GAAP gross profit rose to $1.45 billion from $1.11 billion for respective margins of 65.6% and 65.4%. The margin was above the company’s guidance and was buoyed by improved inventory management and supply-chain discipline.
Total operating expenses were $452.4 million, up from $397.6 million in the year-ago quarter. Research & development costs rose to $296.5 million from $267.5 million. Sales and marketing expenses also increased to $126.5 million from $104.4 million due to a rise in headcount, new product introduction costs and higher variable compensation expenditures. Operating income for the quarter reached a record high of $1.08 billion from $770.4 million.
Cash Flow & Liquidity
In the first six months of 2025, Arista generated $1.84 billion of net cash from operating activities compared with $1.5 billion in the year-ago period. As of June 30, 2025, the company had $2.22 billion in cash and cash equivalents and $307.1 million in other long-term liabilities. During the quarter, the company repurchased $196 million worth of shares at an average price of $80.70 per share. Arista has $1.4 billion worth of shares available for repurchase under its $1.5 billion share buyback program.
Outlook
For the third quarter of 2025, management expects revenues of approximately $2.25 billion owing to healthy growth momentum and solid demand trends. Non-GAAP gross margin is expected to be 64% and non-GAAP operating margin about 47%.
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release third-quarter 2025 earnings on Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $1.67 per share, suggesting a growth of 6.4% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 12%. Keysight delivered an average earnings surprise of 8.2% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.55 per share, indicating a 1.9% decline from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 8%. Akamai delivered an average earnings surprise of 4.8% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying a growth of 17.2% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.3%. Pinterest delivered an average earnings surprise of 0.5% in the last four reported quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arista Beats Q2 Earnings Estimates on Healthy Top-Line Growth
Key Takeaways
Arista Networks, Inc. (ANET - Free Report) reported strong second-quarter 2025 results, with revenues and adjusted earnings soaring year over year, driven by robust demand trends. Innovative product launches and steady customer additions backed by the company’s best-in-class portfolio strength led to top-line expansion, while steady margin improvement contributed to earnings growth. Both the bottom and the top lines beat the respective Zacks Consensus Estimate.
Net Income
GAAP net income in the reported quarter improved to $888.8 million or 70 cents per share from $665.4 million or 52 cents per share in the year-ago quarter, propelled by higher revenues.
On a non-GAAP basis, net income was $923.5 million or 73 cents per share compared with $672.6 million or 53 cents per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate by 8 cents.
Arista Networks, Inc. Price, Consensus and EPS Surprise
Arista Networks, Inc. price-consensus-eps-surprise-chart | Arista Networks, Inc. Quote
Revenues
Revenues surged to $2.2 billion from $1.69 billion in the prior-year quarter, driven by strength across the product portfolio. The company introduced various solutions for cloud, Internet service providers and enterprise networks to meet the rising demands of AI/ML-driven network architectures. These innovations enabled Arista to deliver a superior customer experience and increase customer engagement. The top line beat the consensus estimate of $2.11 billion.
Net quarterly sales from Products totaled $1.88 billion compared with $1.42 billion in the year-ago quarter. Service revenues increased to $327.8 million from $267.1 million. Arista witnessed positive demand trends owing to its strong product portfolio, which is highly scalable, programmable and provides data-driven automation, analytics and world-class support services.
Net sales from the Americas contributed 78.2% to total revenues, while international revenues accounted for the remainder. Driven by its relentless pursuit of innovative products, Arista maintains a strong leadership position in the Data Center and Cloud Networking vertical.
Other Details
Non-GAAP gross profit rose to $1.45 billion from $1.11 billion for respective margins of 65.6% and 65.4%. The margin was above the company’s guidance and was buoyed by improved inventory management and supply-chain discipline.
Total operating expenses were $452.4 million, up from $397.6 million in the year-ago quarter. Research & development costs rose to $296.5 million from $267.5 million. Sales and marketing expenses also increased to $126.5 million from $104.4 million due to a rise in headcount, new product introduction costs and higher variable compensation expenditures. Operating income for the quarter reached a record high of $1.08 billion from $770.4 million.
Cash Flow & Liquidity
In the first six months of 2025, Arista generated $1.84 billion of net cash from operating activities compared with $1.5 billion in the year-ago period. As of June 30, 2025, the company had $2.22 billion in cash and cash equivalents and $307.1 million in other long-term liabilities. During the quarter, the company repurchased $196 million worth of shares at an average price of $80.70 per share. Arista has $1.4 billion worth of shares available for repurchase under its $1.5 billion share buyback program.
Outlook
For the third quarter of 2025, management expects revenues of approximately $2.25 billion owing to healthy growth momentum and solid demand trends. Non-GAAP gross margin is expected to be 64% and non-GAAP operating margin about 47%.
Zacks Rank
Arista currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release third-quarter 2025 earnings on Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $1.67 per share, suggesting a growth of 6.4% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 12%. Keysight delivered an average earnings surprise of 8.2% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.55 per share, indicating a 1.9% decline from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 8%. Akamai delivered an average earnings surprise of 4.8% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying a growth of 17.2% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.3%. Pinterest delivered an average earnings surprise of 0.5% in the last four reported quarters.