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Sep 30, 2025
Arista Q3 2025 Earnings Report
Arista posted strong third quarter results with record revenue and profits.
Key Takeaways
Arista Networks delivered a strong Q3 2025 with solid growth in revenue and net income, driven by strong demand across data, cloud, and AI networking. EPS and non-GAAP EPS both increased, and margins remained healthy despite slight compression.
Revenue reached $2.308 billion, up from $1.811 billion in Q3 2024.
GAAP Net Income rose to $853 million, with diluted EPS of $0.67.
Non-GAAP EPS increased to $0.75, reflecting strong operational efficiency.
Product and service segments both saw significant growth year-over-year.
Revenue by Segment
Forward Guidance
Arista provided Q4 guidance with expected continued revenue growth and healthy margins, while acknowledging macro uncertainties.
Positive Outlook
- Revenue expected between $2.3B and $2.4B.
- Non-GAAP gross margin expected between 62–63%.
- Non-GAAP operating margin expected between 47–48%.
- Strong demand continues across AI and cloud verticals.
- Strategic leadership appointments to strengthen cloud and AI execution.
Challenges Ahead
- Potential macroeconomic headwinds could impact IT spending.
- Gross margin slightly down from prior quarter.
- Ongoing supply chain and inventory pressures.
- Currency fluctuations may affect international revenue.
- Margins could be impacted by investments in new technologies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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