Arista Networks (ANET) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $9.01 billion in 2025, up 28.6% year-over-year, with Q4 revenue of $2.49 billion, up 28.9% year-over-year, driven by strong AI and cloud demand and broad-based product growth.

• Surpassed 150 million cumulative ports shipped and expanded international revenue by over 40% in Asia and Europe, with international mix rising to 21%.

• Cloud and AI titans contributed 48–65% of 2025 revenue, with enterprise/financials at 18–32% and AI/specialty providers at 17–20%.

• Two customers accounted for more than 10% each of total revenue, with expectations for further diversification in 2026.

• Launched new products and initiatives, including the 7800 R4 spine, Blue Box diagnostics, and completed the VeloCloud acquisition.

Financial highlights

• Q4 2025 revenue was $2.49 billion, up 28.9% year-over-year and above guidance.

• Q4 non-GAAP net income reached $1.05 billion (42% of revenue), with diluted EPS of $0.82, up 24.2% year-over-year.

• Q4 operating income was $1.2 billion (47.5% of revenue); FY 2025 operating income was $4.3 billion (48.2%).

• Q4 gross margin was 63.4%, slightly above guidance but down from 64.2% a year ago due to higher cloud/AI mix.

• FY 2025 diluted EPS was $2.98, up 28.4% year-over-year.

Outlook and guidance

• FY 2026 revenue guidance raised to $11.25 billion, representing 25% annual growth.

• AI networking revenue goal increased to $3.25 billion for 2026; campus revenue goal maintained at $1.25 billion.

• FY 2026 gross margin expected in the 62%-64% range, with operating margin outlook raised to ~46%.

• Q1 2026 guidance: revenue ~$2.6 billion, gross margin 62%-63%, operating margin ~46%, tax rate ~21.5%.

• Guidance excludes stock-based compensation, intangible amortization, and potential non-recurring items.