Arista Networks beats Q3 revenue, profit estimates

Arista Networks

04/11/2025 21:15

Overview

Arista Q3 revenue rises 27.5% yr/yr, beating analyst expectations

Adjusted EPS for Q3 beats analyst estimates

Company appoints Kenneth Duda as President and CTO, enhancing cloud and AI focus

Outlook

Arista Networks expects Q4 2025 revenue between $2.3 bln and $2.4 bln

Company forecasts Q4 2025 non-GAAP gross margin of 62-63%

Arista Networks anticipates Q4 2025 non-GAAP operating margin of 47-48%

Result Drivers

DATA STRATEGY - Arista's centers of data strategy resonating well across customers, enhancing client-to-cloud networking experience, per CEO Jayshree Ullal

STRATEGIC EXECUTION - CFO Chantelle Breithaupt attributes 25% non-GAAP EPS growth to strong demand and disciplined execution of strategic roadmap

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$2.31 bln
$2.25 bln (18 Analysts)
Q3 Adjusted EPS
Beat
$0.75
$0.71 (18 Analysts)
Q3 EPS
$0.67
Q3 Adjusted Net Income
Beat
$962.3 mln
$911.78 mln (15 Analysts)
Q3 Net Income
$853 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy"

Wall Street's median 12-month price target for Arista Networks Inc is $165.00, about 4.5% above its November 3 closing price of $157.59

The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 44 three months ago

Press Release: ID:nBw10bXxDa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)