01—Abstract
Summary
Summary of the 10-Q filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Arista Networks, Inc. reported robust financial performance for the nine months ended September 30, 2025, demonstrating strong revenue growth and increased profitability.
Total revenue reached $6.5 billiona, a significant increase of 28.5% year-over-year, driven by a 28.2% rise in product revenue and a 30.1% increase in service revenue. Net income for the period was $2.6 billion, up 24.6% from the prior year, reflecting effective cost management and strong top-line performance. The company's balance sheet remains healthy, with total assets growing to $18 billion, supported by substantial cash and marketable securities totaling $10.1 billion.
This liquidity provides Arista with significant financial flexibility for ongoing operations, strategic investments, and capital allocation. The acquisition of VeloCloud in June 2025 for $300 millionb is expected to enhance Arista's cloud WAN portfolio and contribute to future growth. Despite broader macroeconomic uncertainties and ongoing competitive pressures within the networking industry, Arista Networks continues to execute effectively.
The company's strategic focus on AI-driven networking, coupled with its strong product portfolio and expanding customer base, positions it well for continued success in high-growth markets. Investors can look to Arista's consistent revenue growth, expanding gross margins, and solid cash generation as indicators of its strong operational execution and market leadership.
02—Key points
Key Highlights
- Total revenue for the nine months ended September 30, 2025, increased by 28.5% to $6.5 billion, compared to $5.1 billion in the same period of 2024.
- Net income for the nine months ended September 30, 2025, rose to $2.6 billion, a 24.6% increase from $2.1 billion in the prior year's comparable period.
- Gross margin improved slightly to 64.5% for the nine months ended September 30, 2025, up from 64.3% in the same period last year.
- Arista completed the acquisition of the VeloCloud business for $300.0 million on June 30, 2025, enhancing its cloud WAN portfolio.
- Cash, cash equivalents, and marketable securities totaled approximately $10.1 billion as of September 30, 2025, providing substantial liquidity.
- The company repurchased $983.0 million of its common stock during the nine months ended September 30, 2025, under its stock repurchase programs.
- Research and development expenses increased by 24.9% year-over-year for the nine months, reflecting continued investment in product innovation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Arista Networks, Inc. kept $0.37.
- Revenue$2.31B100.0%
- Cost of revenue−$818.1M35.4%
- Gross profit$1.49B64.6%
- Operating costs−$512.0M22.2%
- Operating income$978.2M42.4%
- Interest, other & tax−$125.2M5.4%
- Net income$853.0M37.0%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.31B$1.81B | +27.5% |
| Cost of Revenue | $818.10M$649.20M | +26.0% |
| Gross Profit | $1.49B$1.16B | +28.3% |
| R&D Expenses | $326.00M$235.80M | +38.3% |
| Operating Expenses | $512.00M$376.40M | +36.0% |
| Operating Income | $978.20M$785.30M | +24.6% |
| Net Income | $853.00M$748.00M | +14.0% |
| EPS (Basic) | $0.68$0.59 | +15.3% |
| EPS (Diluted) | $0.67$0.58 | +15.5% |
| Shares Outstanding (Basic) | 1.26B1.26B | 0.0% |
| Shares Outstanding (Diluted) | 1.28B1.28B | −0.4% |
05—Questions
Frequently Asked Questions
How has Arista Networks' revenue and profitability evolved in the first nine months of 2025 compared to the same period in 2024?
Arista Networks demonstrated strong top-line growth, with total revenue increasing by 28.5% to $6.5 billion for the nine months ended September 30, 2025. Net income also saw robust growth, rising by 24.6% to $2.6 billion during the same period, indicating improved profitability alongside revenue expansion.
What is the current financial health and liquidity position of Arista Networks?
The company maintains a strong financial position, with total assets reaching $18 billion as of September 30, 2025. Its liquidity is substantial, with approximately $10.1 billion in cash, cash equivalents, and marketable securities, providing ample resources for operational needs, strategic initiatives, and potential investments.
How is Arista Networks addressing the evolving market demands, particularly in AI and cloud networking?
Arista Networks is strategically positioning itself to capitalize on growth in AI and cloud networking. This includes significant investments in R&D, with R&D expenses increasing by 24.9% year-over-year for the nine-month period. The acquisition of VeloCloud for $300 million is a key move to enhance its cloud WAN capabilities and complement its existing data center and campus portfolios.
What is Arista Networks' approach to capital allocation, particularly concerning share repurchases and acquisitions?
Arista Networks actively engages in capital allocation through stock repurchase programs and strategic acquisitions. During the first nine months of 2025, the company repurchased $983.0 million of its common stock. The acquisition of VeloCloud for $300 million in June 2025 underscores its strategy to acquire complementary businesses to enhance its market position and product offerings.
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