Arista Networks reports strong Q4 results, aiming for significant revenue growth in 2025

From Nasdaq: 2025-02-19 09:05:00

Arista Networks (NYSE: ANET) reported strong Q4 2024 results, with revenue up 25% year over year to $1.93 billion. The company beat expectations with adjusted earnings per share of $0.65. Arista’s market share in high-speed data center switches has surpassed Cisco Systems, driven by demand from cloud computing giants investing in AI infrastructure.

Arista expects $8.2 billion in revenue for 2025, targeting 17% growth. The company’s long-term goal is to address a $70 billion market by 2028, fueled by demand for ultra-fast data center switches. Arista aims for $750 million each in campus and AI back-end revenue within its 2025 outlook.

Arista’s share prices remained stable after the Q4 report release, despite beating analyst estimates. Up to 45% of the company’s revenue mix is expected to come from cloud and AI giants like Microsoft and Meta Platforms. Arista’s growth heavily depends on the ongoing AI boom, with any pullback in AI spending posing a risk to its growth rate for 2025.

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