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Jun 30
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.
Arista
Arista
Arista Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService Revenue
CapyFin.com 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.
- Actual amounts of exclusions will significantly impact GAAP gross margin and operating margin.
- Forward-looking statements are subject to known and unknown risks and uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income