Companies /Technology

Arista Networks Inc

NYSE: ANET Computer Hardware
$186.10
▼ $3.16 (−1.67%) today
Markets closed · 5:29am ET

Q3 2025 Earnings

Reported Nov 4, 2025, 4:08pm ET · SEC source
$0.75
Beat +4.97%
EPS · est. $0.71
$2.3B
Beat +1.84%
Revenue · est. $2.3B
−8.9%
Trailing market
ANET vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%+10%Nov 4Nov 5report 4:08pm ETearnings+0.3%−0.3%
−5%0+5%+10%Nov 4Nov 5earnings+0.3%−0.3%
ANET −0.3%S&P 500 +0.3%
−5%0+5%+10%Nov 4Nov 5report 4:08pm ETearnings+0.5%−0.3%
−5%0+5%+10%Nov 4Nov 5earnings+0.5%−0.3%
ANET −0.3%NASDAQ +0.5%
0+6%+12%Nov 3Nov 12report 4:08pm ETearnings+1.1%−0.6%
0+6%+12%Nov 3Nov 12earnings+1.1%−0.6%
ANET −0.6%S&P 500 +1.1%
0+6%+12%Nov 3Nov 12report 4:08pm ETearnings+0.3%−0.6%
0+6%+12%Nov 3Nov 12earnings+0.3%−0.6%
ANET −0.6%NASDAQ +0.3%
−8.55%
Day of report
−4.56%
Next session
−3.87%
One week
−8.05%
30 days

S&P 500 over the same 30 days: +0.89%.

Did ANET Beat Earnings? Q3 2025 Results

Arista Networks posted a clean beat across both top and bottom lines in <a href="https://247wallst.com/investing/2025/11/04/live-complete-arista-networks-anet-q3-earnings/">its third quarter</a>, delivering non-GAAP EPS of $0.75 against a consensus estimate of $0.71, a 4.97% beat, while revenue of $2.31 billion topped expectations by 1.84% and grew 27.5% year-over-year. The company's durable momentum in AI and cloud data center networking remained the central engine of that growth, with CEO Jayshree Ullal pointing to the resonance of Arista's "centers of data" strategy as demand for high-performance switching and routing platforms stayed robust. Gross margins edged slightly lower sequentially, a trend management signaled will continue, with Q4 2025 non-GAAP gross margin guidance of 62-63% representing a notable step-down from Q3's 65.2%, even as revenue guidance of $2.30 to $2.40 billion points to sustained top-line expansion. Some analysts have flagged the valuation as stretched given a moderating growth pace, though the company's $4.69 billion deferred revenue balance and strong institutional ownership underscore confidence in Arista's forward visibility.

Key Takeaways
  • 27.5% year-over-year revenue growth driven by strong demand in AI and cloud networking
  • 25% non-GAAP EPS growth reflecting disciplined execution of strategic roadmap
  • Centers of data strategy resonating across customers and analysts
  • Product revenue grew 25.5% YoY to $1.91 billion; Service revenue grew 38.1% YoY to $396.6 million

“Our centers of data strategy is resonating well across customers and analysts because it delivers a superior client to campus to cloud/data and AI centers experience.”

Arista Networks CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025, Arista expects revenue of $2.3-$2.4 billion, non-GAAP gross margin of 62-63%, and non-GAAP operating margin of 47-48%. The guided gross margin represents a notable sequential decline from Q3 2025's 65.2% non-GAAP gross margin.

ANET YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$700.0M$1.4B$2.1B$1.8B$2.3BRevenue$1.2B$1.5BGross Profit$785.3M$978.2MOperating Income$747.9M$853.0MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

ANET Revenue by Segment

Product$1.9B+25.5%
Service$396.6M+38.1%

Figures from SEC filings and company reports. Not investment advice.