Arista Networks Reports Strong Q4 Earnings, Q1 Outlook Exceeds Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ANET?
Source: stocktwits
- Strong Performance: Arista Networks reported Q4 revenue of $2.49 billion and an adjusted profit of $0.82 per share, both exceeding analysts' expectations of $2.38 billion and $0.76, showcasing robust performance amid surging demand from AI data centers.
- Positive Outlook: The company forecasts Q1 sales of $2.6 billion with a gross margin between 62% and 63%, surpassing analysts' expectations of $2.46 billion and 63% margin, which further boosts investor confidence in its growth trajectory.
- Market Reaction: Following the earnings report, Arista's shares surged 12.5% in after-hours trading, reflecting a positive market response, while retail investor sentiment shifted from 'neutral' to 'extremely bullish' on Stocktwits.
- Contrast with Cisco: Arista's upbeat results stand in stark contrast to Cisco's report, which, despite beating revenue expectations, saw its shares decline due to lower-than-expected margin guidance, highlighting investor scrutiny on AI exposure among networking stocks.
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Analyst Views on ANET
Wall Street analysts forecast ANET stock price to rise
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 140.660
Low
140.00
Averages
171.42
High
200.00
Current: 140.660
Low
140.00
Averages
171.42
High
200.00
About ANET
Arista Networks, Inc. is a provider of data-driven, client-to-cloud networking for large artificial intelligence (AI), data center, campus and routing environments. Its platforms deliver availability, agility, automation, analytics, and security through an advanced network operating stack. Its platform is its Extensible Operating System (EOS), a modernized publish-subscribe state-sharing networking operating system. Its portfolio of products, services and technologies is grouped into various categories: Core (Data Center, Cloud and AI Networking), Cognitive Adjacencies (Campus and Routing), and Cognitive Network (Software and Services). It offers product portfolios of data-driven, high-speed, cloud and data center Ethernet switches. Its Cognitive Adjacencies include Cognitive Campus Switching, Cloud-Grade Routing and WAN Routing. Its software and services are based on subscription-based models and include various offerings: CloudVision, Arista A-Care Services, CloudEOS and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Arista Networks Q4 Earnings Beat Expectations with Strong Guidance
- Strong Earnings Report: Arista Networks reported a Q4 non-GAAP EPS of $0.82, beating expectations by $0.06, which underscores the company's sustained profitability and reinforces its leadership position in the networking industry.
- Significant Revenue Growth: Q4 revenue reached $2.49 billion, a 29% year-over-year increase, exceeding market expectations by $100 million, reflecting strong demand and an increase in market share in the rapidly growing AI networking sector.
- Optimistic Guidance: For Q1 2026, revenue is expected to be approximately $2.6 billion, surpassing the consensus estimate of $2.46 billion, with non-GAAP gross margins projected between 62% and 63%, indicating strong confidence in future growth.
- Improved Operational Efficiency: The anticipated non-GAAP operating margin of approximately 46% demonstrates the company's success in cost control and operational efficiency, further enhancing its profitability in a competitive market.
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Arista Networks Reports Strong Q4 Earnings, Q1 Outlook Exceeds Expectations
- Strong Performance: Arista Networks reported Q4 revenue of $2.49 billion and an adjusted profit of $0.82 per share, both exceeding analysts' expectations of $2.38 billion and $0.76, showcasing robust performance amid surging demand from AI data centers.
- Positive Outlook: The company forecasts Q1 sales of $2.6 billion with a gross margin between 62% and 63%, surpassing analysts' expectations of $2.46 billion and 63% margin, which further boosts investor confidence in its growth trajectory.
- Market Reaction: Following the earnings report, Arista's shares surged 12.5% in after-hours trading, reflecting a positive market response, while retail investor sentiment shifted from 'neutral' to 'extremely bullish' on Stocktwits.
- Contrast with Cisco: Arista's upbeat results stand in stark contrast to Cisco's report, which, despite beating revenue expectations, saw its shares decline due to lower-than-expected margin guidance, highlighting investor scrutiny on AI exposure among networking stocks.
See More
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- Intensifying AI Trade: As the AI disruption trade intensifies, there is a growing focus on related tech stocks, which, despite potential short-term volatility, are still viewed favorably for their long-term potential, possibly attracting more capital inflows.
- Earnings Reports Released: Applied Materials and Arista Networks reported their earnings after hours, and the market's reaction to their performance will significantly impact investor confidence in tech stocks, especially in the current market environment.
- Investor Strategy Reevaluation: In light of increasing market volatility, investors may need to reassess their investment strategies to navigate potential risks and opportunities, particularly in the AI sector.
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- Automotive Revenue Decline: Automotive revenue totaled $839 million, a 45% year-over-year drop primarily due to reduced regulatory credit sales, fewer vehicle deliveries, and lower average selling prices, reflecting intensified market pressures.
- Software Services Surge: Software and services revenue soared 109% to $447 million, indicating significant progress in diversifying revenue streams, which could lay the groundwork for future profitability.
- Production and Delivery Metrics: The company produced 10,974 vehicles and delivered 9,745 in Q4, bringing total annual deliveries to 42,247 units, demonstrating ongoing efforts and potential in scaling production despite challenges.
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Arista Networks Reports Record Q4 2025 Earnings with 28.6% Growth
- Significant Revenue Growth: Arista Networks achieved $2.49 billion in revenue for Q4 2025, marking a 28.9% year-over-year increase and exceeding guidance of $2.3 to $2.4 billion, highlighting the company's strong performance in cloud and AI networking.
- Doubling AI Revenue Target: Management raised the 2026 AI networking revenue target from $1.5 billion to $3.25 billion, demonstrating strong confidence in AI market demand, which is expected to further drive overall revenue growth.
- International Market Expansion: International revenues reached $528.3 million, accounting for 21.2% of total revenue, with Asia and Europe growing over 40% annually, indicating the company's sustained competitiveness in global markets.
- Gross Margin and Net Income: The gross margin for Q4 was 63.4%, with net income of $1.05 billion, marking the first time the company surpassed $1 billion in net income, reflecting successful cost control and operational efficiency, thereby strengthening the foundation for future investments.
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Multiple Companies Shine in After-Hours Trading
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- Coinbase Trading Volume Surge: Coinbase announced a total trading volume of $5.2 trillion in 2025, up 156% year-over-year, and despite missing fourth-quarter revenue expectations, its stock rose nearly 2%, indicating robust performance in the crypto market.
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- Airbnb's Upbeat Guidance: Airbnb reported fourth-quarter earnings of $0.56 per share on $2.78 billion in revenue, falling short of analyst expectations, yet the company anticipates full-year revenue growth of at least low double digits, leading to a stock increase of about 2%, showcasing market confidence in its future growth.
See More
Arista Networks Q4 Earnings Beat Expectations with Strong Guidance
- Strong Earnings Report: Arista Networks reported a Q4 non-GAAP EPS of $0.82, beating expectations by $0.06, which underscores the company's sustained profitability and reinforces its leadership position in the networking industry.
- Significant Revenue Growth: Q4 revenue reached $2.49 billion, a 29% year-over-year increase, exceeding market expectations by $100 million, reflecting strong demand and an increase in market share in the rapidly growing AI networking sector.
- Optimistic Guidance: For Q1 2026, revenue is expected to be approximately $2.6 billion, surpassing the consensus estimate of $2.46 billion, with non-GAAP gross margins projected between 62% and 63%, indicating strong confidence in future growth.
- Improved Operational Efficiency: The anticipated non-GAAP operating margin of approximately 46% demonstrates the company's success in cost control and operational efficiency, further enhancing its profitability in a competitive market.
See More
Arista Networks Reports Strong Q4 Earnings, Q1 Outlook Exceeds Expectations
- Strong Performance: Arista Networks reported Q4 revenue of $2.49 billion and an adjusted profit of $0.82 per share, both exceeding analysts' expectations of $2.38 billion and $0.76, showcasing robust performance amid surging demand from AI data centers.
- Positive Outlook: The company forecasts Q1 sales of $2.6 billion with a gross margin between 62% and 63%, surpassing analysts' expectations of $2.46 billion and 63% margin, which further boosts investor confidence in its growth trajectory.
- Market Reaction: Following the earnings report, Arista's shares surged 12.5% in after-hours trading, reflecting a positive market response, while retail investor sentiment shifted from 'neutral' to 'extremely bullish' on Stocktwits.
- Contrast with Cisco: Arista's upbeat results stand in stark contrast to Cisco's report, which, despite beating revenue expectations, saw its shares decline due to lower-than-expected margin guidance, highlighting investor scrutiny on AI exposure among networking stocks.
See More
Stock Market Plummets as AI Disruption Trade Intensifies
- Market Decline: The stock market experienced a significant drop on Thursday, with the S&P 500 falling below its 50-day moving average, indicating a notable deterioration in market sentiment that could lead to decreased investor confidence and increased selling pressure.
- Intensifying AI Trade: As the AI disruption trade intensifies, there is a growing focus on related tech stocks, which, despite potential short-term volatility, are still viewed favorably for their long-term potential, possibly attracting more capital inflows.
- Earnings Reports Released: Applied Materials and Arista Networks reported their earnings after hours, and the market's reaction to their performance will significantly impact investor confidence in tech stocks, especially in the current market environment.
- Investor Strategy Reevaluation: In light of increasing market volatility, investors may need to reassess their investment strategies to navigate potential risks and opportunities, particularly in the AI sector.
See More
Rivian Reports Q4 Earnings Beat Expectations
- Earnings Highlights: Rivian's Q4 revenue reached $1.29 billion, down from $1.73 billion year-over-year but exceeding the $1.27 billion market estimate, showcasing the company's resilience amid challenges.
- Automotive Revenue Decline: Automotive revenue totaled $839 million, a 45% year-over-year drop primarily due to reduced regulatory credit sales, fewer vehicle deliveries, and lower average selling prices, reflecting intensified market pressures.
- Software Services Surge: Software and services revenue soared 109% to $447 million, indicating significant progress in diversifying revenue streams, which could lay the groundwork for future profitability.
- Production and Delivery Metrics: The company produced 10,974 vehicles and delivered 9,745 in Q4, bringing total annual deliveries to 42,247 units, demonstrating ongoing efforts and potential in scaling production despite challenges.
See More
Arista Networks Reports Record Q4 2025 Earnings with 28.6% Growth
- Significant Revenue Growth: Arista Networks achieved $2.49 billion in revenue for Q4 2025, marking a 28.9% year-over-year increase and exceeding guidance of $2.3 to $2.4 billion, highlighting the company's strong performance in cloud and AI networking.
- Doubling AI Revenue Target: Management raised the 2026 AI networking revenue target from $1.5 billion to $3.25 billion, demonstrating strong confidence in AI market demand, which is expected to further drive overall revenue growth.
- International Market Expansion: International revenues reached $528.3 million, accounting for 21.2% of total revenue, with Asia and Europe growing over 40% annually, indicating the company's sustained competitiveness in global markets.
- Gross Margin and Net Income: The gross margin for Q4 was 63.4%, with net income of $1.05 billion, marking the first time the company surpassed $1 billion in net income, reflecting successful cost control and operational efficiency, thereby strengthening the foundation for future investments.
See More
Multiple Companies Shine in After-Hours Trading
- Applied Materials Earnings Beat: California-based semiconductor equipment company Applied Materials reported adjusted earnings of $2.38 per share and revenue of $7.01 billion, both exceeding analyst expectations, leading to an 11% stock price increase that reflects strong market demand and profitability.
- Coinbase Trading Volume Surge: Coinbase announced a total trading volume of $5.2 trillion in 2025, up 156% year-over-year, and despite missing fourth-quarter revenue expectations, its stock rose nearly 2%, indicating robust performance in the crypto market.
- Rivian Delivery Forecast Upgrade: Electric truck manufacturer Rivian expects vehicle deliveries for 2026 to range from 62,000 to 67,000 units, representing a 47% to 59% increase compared to 2025, resulting in a 14% stock price surge that reflects market confidence in its growth potential.
- Airbnb's Upbeat Guidance: Airbnb reported fourth-quarter earnings of $0.56 per share on $2.78 billion in revenue, falling short of analyst expectations, yet the company anticipates full-year revenue growth of at least low double digits, leading to a stock increase of about 2%, showcasing market confidence in its future growth.
See More
