Arista Networks (ANET) posted better-than-expected earnings as quarterly revenue reached a record high.
Arista reported first-quarter revenue of $2.01 billion, up 28% year-over-year and above the analyst consensus from Visible Alpha. Adjusted net income of $826.2 million, or 65 cents per share, rose from $637.7 million, or 50 cents per share, a year earlier, surpassing Wall Street’s estimates.
“AI, cloud, and enterprise customers continue to drive network transformation,” CEO Jayshree Ullal said. That drove the company’s quarterly revenue above $2 billion for the first time “despite the unknowns around tariffs,” Ullal added.
Still, shares of the cloud networking company fell about 7% in after-hours trading. The stock was down 18% for 2025 through Tuesday’s close.
Expectations were high ahead of the results after Meta (META) and Microsoft (MSFT)—which make up an estimated 40% of Arista’s sales—committed to big investments in artificial intelligence infrastructure. The tech giants’ plans “eased concerns that spending would be cut,” Citi analysts said ahead of Tuesday’s report.
Looking ahead, Arista said it expects second-quarter revenue of $2.1 billion, above the analyst consensus.
The company also said its board authorized a share repurchase program of up to $1.5 billion.
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