Arista Networks, Inc. (NYSE: ANET) Q2 2025 Earnings | 08/06/2025

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Arista Networks, Inc. reported record financial results for the second quarter ended June 30, 2025, driven by strong demand in AI, cloud, and enterprise networking markets. The company posted revenue of $2.205 billion, reflecting a 30.4% increase year-over-year and a 10.0% rise from Q1 2025. GAAP gross margin improved to 65.2%, up from 63.7% in the prior quarter, while non-GAAP gross margin reached 65.6%, slightly above last year's 65.4%. GAAP net income was $888.8 million, or $0.70 per diluted share, compared to $665.4 million, or $0.52 per diluted share, a year ago. Non-GAAP net income came in at $923.5 million, or $0.73 per diluted share, beating prior-year results of $672.6 million and $0.53 per share respectively. The company’s strong operational performance reflected efficient supply chain management and inventory benefits with minimal tariff impact. Arista highlighted significant momentum in AI-driven data center networking, with 16.3% of revenue from software and service renewals. International revenue accounted for 21.8% of total sales, emphasizing global growth. The company generated approximately $1.2 billion in cash from operations, the highest in its history, and ended the quarter with increased inventory and deferred revenue balances driven by new product introductions and customer contract terms. Looking ahead, Arista raised its 2025 annual revenue growth guidance from 17% to 25%, now targeting $8.75 billion in revenue. For Q3 2025, the company expects revenue around $2.25 billion, a non-GAAP gross margin near 64%, and a non-GAAP operating margin of approximately 48%. This outlook is supported by continued strong demand across AI, cloud, and enterprise sectors. Arista is also integrating its recent acquisition of VeloCloud and progressing on expansion initiatives including new facilities in Santa Clara. About Inside Ticker: For more expert analysis and real-time updates on Arista Networks, Inc. (NYSE: ANET) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #AristaNetworks #ANET #Q22025 #Earnings #FinancialResults #RevenueGrowth #NetIncome #EPS #GrossMargin #NonGAAP #AI #Cloud #DataCenter #Networking #SoftwareRenewals #CashFlow #Inventory #DeferredRevenue #Telecommunications #Technology #NASDAQ #InsideTicker #2025Outlook #InvestorUpdate #VeloCloud #SupplyChain #OperationalExcellence