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Arista Networks, Inc. 8-K Report, Financial Results (Feb 12, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 12, 2026
Period End
February 12, 2026
Security
ANET
In the record · 2016–202610-K1110-Q348-K80

ANET filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 80 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Aug ’18Aug ’18
  2. Leadership change8-K · Jul ’21Jul ’21
  3. Leadership change8-K · May ’25May ’25

01—Abstract

Summary

Summary of the 8-K filed February 12, 2026. Cited figures are marked; the original filing is the authoritative source.

Arista Networks reported fourth-quarter 2025 revenue of $2.488 billiona, up 28.9% year over year and 7.8% sequentially, with non-GAAP operating margin of 47.5% and non-GAAP diluted EPS of $0.82.

Full-year 2025 revenue reached $9.006 billionb (+28.6%), GAAP net income was $3.511 billion ($2.75 per diluted share), and management highlighted crossing $1 billion of quarterly net income for the first time. Operating leverage was strong, though gross margins compressed sequentially: GAAP gross margin fell to 62.9% from 64.6% in Q3, and non-GAAP gross margin fell to 63.4% from 65.2%. The balance sheet and cash flow show a clear shift in business momentum.

Current deferred revenue more than doubled to $4.0 billionc from $1.7 billion, and operating cash flow rose to $4.37 billion for the year. Accounts receivable grew to $1.89 billion from $1.14 billion, and inventory rose to $2.25 billion, so investors should watch collections and working capital alongside the revenue growth. Arista also repurchased $1.6 billion of stock in 2025 (versus $424 million in 2024), spent $300 million on the VeloCloud SD-WAN acquisition, and ended the year with roughly $10.7 billion in cash and marketable securities.

For Q1 2026, management guided to revenue of approximately $2.6 billiond, non-GAAP gross margin of 62-63%, and non-GAAP operating margin of about 46%. The guide implies sequential margin pressure relative to Q4 2025.

Investors should also note that Arista changed its methodology for the non-GAAP tax effect of stock-based awards effective Q4 2025, with prior periods recast. The filing also cites risks including tariffs and export controls, customer concentration, supply constraints, and reliance on a single merchant silicon vendor.

02—Key points

Key Highlights

  1. Q4 2025 revenue of $2.488B grew 28.9% year over year and 7.8% sequentially; FY2025 revenue of $9.006B grew 28.6%.
  2. Q4 non-GAAP operating margin of 47.5% (vs. 47.0% a year earlier) and non-GAAP EPS of $0.82 (vs. $0.66), with non-GAAP net income surpassing $1 billion for the quarter.
  3. Gross margin compressed sequentially: GAAP 62.9% (from 64.6% in Q3) and non-GAAP 63.4% (from 65.2%).
  4. Deferred revenue (current) surged to $4.0B from $1.7B, and FY2025 operating cash flow rose to $4.37B from $3.71B.
  5. Q1 2026 guidance: revenue of ~$2.6B, non-GAAP gross margin of 62-63%, and non-GAAP operating margin of ~46%.
  6. Capital returns and M&A: $1.6B of share repurchases in 2025 (vs. $424M in 2024) and a $300M cash acquisition of the VeloCloud SD-WAN portfolio from Broadcom.
  7. Non-GAAP methodology change: the tax effect of stock-based awards was revised effective Q4 2025, with prior periods recast, which affects comparability of non-GAAP EPS.

03—Questions

Frequently Asked Questions

  1. How strong was Arista's growth in Q4 and full-year 2025?

    Q4 2025 revenue was $2.488 billion, up 28.9% year over year and 7.8% sequentially. Full-year revenue reached $9.006 billion, up 28.6% from 2024. GAAP net income for the year was $3.511 billion, or $2.75 per diluted share, compared with $2.23 in 2024.

  2. Why did gross margins decline in Q4, and what does the Q1 2026 guidance imply?

    GAAP gross margin fell to 62.9% from 64.6% in Q3 2025, and non-GAAP gross margin fell to 63.4% from 65.2%. The filing does not explain the drivers in detail. Q1 2026 guidance of 62-63% non-GAAP gross margin suggests margins may remain under pressure, though operating margin guidance of about 46% is still strong relative to historical levels.

  3. Is the rise in deferred revenue and receivables a positive or a concern?

    Current deferred revenue more than doubled to $4.0 billion, and operating cash flow grew to $4.37 billion, which are positive signs of demand visibility. However, accounts receivable rose to $1.89 billion from $1.14 billion and inventory rose to $2.25 billion, so investors should monitor collections and working capital efficiency, especially given customer concentration risk noted in the filing.

  4. How should investors interpret the non-GAAP methodology change?

    Effective Q4 2025, Arista changed how it calculates the non-GAAP tax effect of stock-based awards. It continues to exclude direct excess tax benefits but no longer excludes discrete indirect effects. Prior periods were recast, with an increase to non-GAAP income of $61.3 million for FY2024. Investors comparing non-GAAP EPS across periods should use the recast figures and reconcile to GAAP results.

  5. What capital allocation actions did Arista take in 2025?

    Arista repurchased $1.603 billion of common stock in 2025, up from $424 million in 2024. It also paid $300 million in cash for the VeloCloud SD-WAN portfolio acquired from Broadcom. Cash and marketable securities totaled about $10.7 billion at year-end, compared with about $8.3 billion a year earlier.

04—Continue

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