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Mar 31
Arista Q1 2025 Earnings Report
Arista posted strong first quarter results with record revenue surpassing $2 billion and continued profitability momentum.
Key Takeaways
Arista Networks delivered a robust Q1 2025, achieving over $2 billion in revenue for the first time, with substantial net income and operating margins supported by AI and enterprise demand.
Revenue hit $2.005 billion, up 27.6% YoY.
GAAP net income reached $813.8 million.
Arista completed $787M in stock repurchases, a company record.
Advanced AI network solutions and observability tools launched to support data workloads.
Arista
Arista
Arista Revenue by Segment
Forward Guidance
For Q2 2025, Arista expects $2.1B revenue and solid margins, driven by enterprise and AI network demand.
Positive Outlook
- Revenue projected around $2.1 billion.
- Non-GAAP gross margin expected at ~63%.
- Non-GAAP operating margin anticipated at ~46%.
- Sustained demand from AI and enterprise customers.
- Continued innovation in network observability and load balancing.
Challenges Ahead
- Ongoing uncertainty around tariffs and global trade conditions.
- Risk from customer concentration.
- Macroeconomic and geopolitical pressures.
- Variability in gross margins due to market conditions.
- Exposure to supply chain and inventory management challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income