AI Takeaway
Arista Networks delivered exceptional FY2025 results with revenue surging 28.6% to $9.0B and net income more than doubling to $3.5B, driven by strong demand for cloud networking solutions while maintaining industry-leading operating margins above 42%.
Revenue
$9.01B
++28.60% YoY
EPS (Basic)
$2.79
++22.91% YoY
Gross Margin
64.1%
-0.08% YoY
Operating Income
$3.86B
++30.95% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Arista Networks grew total revenue by 28.6% year-over-year to $9.01B in FY2025, up from $7.00B in FY2024, reflecting robust demand for high-speed cloud and AI networking infrastructure from hyperscaler and enterprise customers.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating income grew 31.0% to $3.86B, outpacing revenue growth, with operating margin improving 77 basis points to 42.8% from 42.0% in the prior year, demonstrating strong operating leverage despite increased R&D investment.
Source: Source: 10-K Income Statement (XBRL Financial Data)
R&D expenses increased 24.1% to $1.24B in FY2025, reflecting Arista's commitment to developing next-generation networking technologies including AI-driven platforms, though growing slightly slower than revenue to allow margin expansion.
Source: Source: 10-K Income Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockArista Networks derives a significant portion of its revenue from a small number of large hyperscaler and cloud customers. Any reduction in spending, budget cuts, or shift in technology strategy by these key customers could materially impact revenue. The 28.6% revenue growth, while impressive, may mask underlying concentration in a few large accounts.
Source: Source: 10-K Risk Factors (inferred from financial data and business model)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.82 versus the $0.77 analyst consensus — a +6.2% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $9.01B | $7B | +28.60% |
Cost of Revenue | $3.24B | $2.51B | +28.87% |
Gross Profit | $5.77B | $4.49B | +28.44% |
Operating Income | $3.86B | $2.94B | +30.95% |
Net Income | $3.51B | $2,852 | +123120517.11% |
EPS (Basic) | $2.79 | $2.27 | +22.91% |
EPS (Diluted) | $2.75 | $2.23 | +23.32% |
R&D Expense | $1.24B | $996.7M | +24.14% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $19.45B | $14.04B | +38.48% |
Current Assets | $16.39B | $11.91B | +37.58% |
Total Liabilities | $7.08B | $4.05B | +74.81% |
Current Liabilities | $5.38B | $2.73B | +96.78% |
Stockholders' Equity | $12.37B | $9.99B | +23.77% |
Cash & Equivalents | $1.96B | $2.76B | -28.91% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.37B | $3.71B | +17.90% |
Investing Cash Flow | $-3.58B | $-2.46B | -45.53% |
Financing Cash Flow | $-1.6B | $-421.8M | -278.35% |
Share Buybacks | $1.6B | $423.6M | +278.45% |
D&A | $72.6M | $62M | +17.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 64.1% | 64.1% | -0.08% |
Operating Margin | 42.8% | 42.0% | +0.77% |
Net Margin | 39.0% | — | — |
ROE | 28.4% | — | — |
ROA | 18.1% | — | — |
Current Ratio | $3.048 | — | — |
Debt to Equity | $0.572 | — | — |
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Arista Networks had an outstanding FY2025, with revenue growing 28.6% to $9.01B and net income reaching $3.51B. The company maintained exceptional profitability with a 42.8% operating margin and 39.0% net margin, driven by strong demand for AI and cloud networking infrastructure.
Arista's 28.6% revenue growth to $9.01B in FY2025 was driven by robust demand for high-speed networking solutions from hyperscalers and enterprises investing heavily in AI and cloud infrastructure. The company also continued to invest in R&D, spending $1.24B (+24.1%) to develop next-generation networking platforms.
Yes, Arista's diluted EPS grew 23.3% to $2.75 in FY2025, up from $2.23 in FY2024. This growth was supported by both strong net income of $3.51B and an aggressive share buyback program of $1.60B, which reduced the diluted share count.
Arista's financial health is very strong, with a current ratio of 3.05, a conservative debt-to-equity ratio of 0.57, and operating cash flow of $4.37B. Total assets grew 38.5% to $19.45B and stockholders' equity stands at $12.37B, reflecting a solid and well-capitalized balance sheet.
Arista Networks dramatically accelerated its share repurchase program in FY2025, buying back $1.60B worth of shares, a 278.4% increase from the $423.6M spent in FY2024. This signals strong management confidence in the company's outlook and a commitment to returning capital to shareholders.