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Jun 30, 2025
Arista Q2 2025 Earnings Report
Arista Networks, Inc. reported its second quarter 2025 financial results, showcasing significant revenue growth and strong profitability.
Key Takeaways
Arista Networks delivered a robust second quarter in 2025, with total revenue reaching $2.205 billion, marking a 30.4% increase year-over-year. The company achieved GAAP net income of $888.8 million and non-GAAP net income of $923.5 million, with non-GAAP operating income exceeding $1 billion for the first time, driven by strong customer demand and efficient scaling.
Total revenue for Q2 2025 was $2.205 billion, a 30.4% increase from Q2 2024.
GAAP diluted EPS was $0.70, up from $0.52 in Q2 2024.
Non-GAAP diluted EPS was $0.73, compared to $0.53 in Q2 2024.
Non-GAAP operating income surpassed $1 billion for the first time, demonstrating strong business model and customer demand.
Revenue by Segment
Forward Guidance
For the third quarter of 2025, Arista Networks expects revenue of approximately $2.25 billion, non-GAAP gross margin of approximately 64%, and non-GAAP operating margin of approximately 47%.
Positive Outlook
- Expected revenue of approximately $2.25 billion for Q3 2025, indicating continued growth.
- Anticipated non-GAAP gross margin of approximately 64% for Q3 2025, maintaining strong profitability.
- Projected non-GAAP operating margin of approximately 47% for Q3 2025, reflecting sustained operational efficiency.
- Company is well-positioned in data-driven AI networking, from client to cloud.
- Customers are standardizing on Arista's platform for transformational innovation.
Challenges Ahead
- Guidance for non-GAAP financial measures excludes certain items, making direct GAAP comparison difficult.
- Stock-based compensation expense, intangible asset amortization, and potential non-recurring charges are excluded from non-GAAP guidance.
- Reconciliation of non-GAAP guidance to GAAP measures is not available on a forward-looking basis without unreasonable effort.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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