Arista Networks (ANET) Reports Strong Q3 Earnings
Arista Networks posts strong Q3 results with revenue up 27.5% YoY; expands AI networking leadership and introduces new AI-driven tools.
Key Points
- Revenue: $2.308 billion (↑ 27.5% YoY; ↑ 4.7% QoQ)
- GAAP EPS: $0.67 vs $0.58 last year
- Non-GAAP EPS: $0.75 vs $0.60 last year
- GAAP gross margin: 64.6%
- Non-GAAP gross margin: 65.2%
- GAAP net income: $853 million
- Non-GAAP net income: $962 million
Guidance (Q4 2025):
- Revenue $2.3–$2.4 billion
- Non-GAAP gross margin 62–63%
- Non-GAAP operating margin 47–48%
Quarter Highlights
- CEO Jayshree Ullal said Arista’s “centers of data strategy” continues to gain traction, strengthening its position as a strategic networking provider across AI and data-center markets.
- CFO Chantelle Breithaupt highlighted 25% non-GAAP EPS growth, reflecting both strong demand and disciplined execution.
- Leadership changes: Kenneth Duda was named President & CTO, expanding oversight of cloud and AI systems engineering; Tyson Lamoreaux joined as SVP of Cloud and AI Networking.
- AI initiatives:
- AI Agents launched to automate and streamline network operations, integrating open standards (MCP) with Arista EOS and NetDL.
- Arista CloudVision AI introduced as an observability blueprint for modern AI workloads, offering end-to-end visibility and intelligence from physical networks to job-level performance.
- Industry collaboration: Partnered with industry leaders through the Ethernet for Scale-Up Networks (ESUN) initiative—an open OCP workstream for Ethernet-based, standards-driven scale-up solutions.
CEO Statement and Outlook
Ullal emphasized Arista’s durability and positioning amid accelerating AI demand:
“Our centers of data strategy is resonating well across customers and analysts because it delivers a superior client-to-campus-to-cloud and AI centers experience. After yet another strong performance in Q3 2025, Arista is well-positioned as a strategic networking provider with continued durable execution.”
Financial Summary
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Revenue | $2.308 B | $1.811 B | +27.5% |
| GAAP Gross Margin | 64.6% | 64.2% | +40 bps |
| Non-GAAP Gross Margin | 65.2% | 64.6% | +60 bps |
| GAAP EPS | $0.67 | $0.58 | +15.5% |
| Non-GAAP EPS | $0.75 | $0.60 | +25% |
| GAAP Net Income | $853 M | $748 M | +14% |
Capital Return
- Repurchased $983 million of common stock during the first nine months of 2025.
- Cash, cash equivalents, and marketable securities totaled $10.1 billion at quarter-end.
About Arista Networks
Arista Networks is a leading provider of data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. Its EOS-based platforms deliver agility, automation, analytics, and security through an advanced network operating stack.
Key Takeaways
- Arista’s AI-centric strategy is delivering measurable growth, with dedicated leadership now focused on AI networking.
- AI Agents and CloudVision AI mark a major step in embedding AI across network operations and observability.
- Growth remained broad-based, but margins tightened slightly due to higher R&D investment tied to AI and cloud systems.
- Guidance suggests steady execution into Q4 with continued focus on scale-out Ethernet and AI-optimized infrastructure.