Revenue growth has accelerated from 15.9% in 2024Q2 to 35.1% in 2026Q1, while the company maintains structural margin resilience with gross margins consistently near 64%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 9.71B | 9.01B | 7B | 5.86B | 4.38B | 2.95B | 2.32B | 2.41B | 2.15B | 1.65B | 1.13B | 837.59M | 584.11M | 361.22M | 193.41M |
| Revenue Growth % | 30.57% | 28.6% | 19.5% | 33.75% | 48.62% | 27.21% | -3.87% | 12.05% | 30.69% | 45.79% | 34.81% | 43.4% | 61.7% | 86.77% | - |
| Cost of Goods Sold | 3.54B | 3.24B | 2.51B | 2.23B | 1.71B | 1.07B | 835.63M | 866.37M | 777.99M | 584.42M | 406.05M | 294.03M | 192.01M | 122.69M | 61.25M |
| COGS % of Revenue | - | 35.94% | 35.87% | 38.05% | 38.93% | 36.2% | 36.06% | 35.94% | 36.16% | 35.5% | 35.96% | 35.1% | 32.87% | 33.96% | 31.67% |
| Gross Profit | 6.17B | 5.77B | 4.49B | 3.63B | 2.68B | 1.88B | 1.48B | 1.54B | 1.37B | 1.06B | 723.12M | 543.56M | 392.09M | 238.54M | 132.16M |
| Gross Margin % | 63.54% | 64.06% | 64.13% | 61.95% | 61.07% | 63.8% | 63.94% | 64.06% | 63.84% | 64.5% | 64.04% | 64.9% | 67.13% | 66.04% | 68.33% |
| Gross Profit Growth % | - | 28.44% | 23.72% | 35.68% | 42.27% | 26.92% | -4.04% | 12.45% | 29.35% | 46.83% | 33.03% | 38.63% | 64.37% | 80.5% | - |
| Operating Expenses | 2.01B | 1.91B | 1.55B | 1.37B | 1.15B | 956.04M | 782.2M | 738.56M | 1.1B | 591.5M | 479.71M | 394.25M | 266.58M | 172.39M | 92.26M |
| OpEx % of Revenue | - | 21.24% | 22.09% | 23.43% | 26.22% | 32.43% | 33.75% | 30.64% | 51.13% | 35.93% | 42.48% | 47.07% | 45.64% | 47.72% | 47.7% |
| Selling, General & Admin | 699.7M | 675.3M | 550M | 518.11M | 420.2M | 369.29M | 295.61M | 275.81M | 252.56M | 241.9M | 206.13M | 184.8M | 117.67M | 73.8M | 37.1M |
| SG&A % of Revenue | - | 7.5% | 7.85% | 8.84% | 9.59% | 12.53% | 12.76% | 11.44% | 11.74% | 14.69% | 18.25% | 22.06% | 20.15% | 20.43% | 19.18% |
| Research & Development | 1.31B | 1.24B | 996.7M | 854.92M | 728.39M | 586.75M | 486.59M | 462.76M | 442.47M | 349.59M | 273.58M | 209.45M | 148.91M | 98.59M | 55.16M |
| R&D % of Revenue | - | 13.74% | 14.23% | 14.59% | 16.63% | 19.9% | 21% | 19.2% | 20.57% | 21.24% | 24.23% | 25.01% | 25.49% | 27.29% | 28.52% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 405M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 4.16B | 3.86B | 2.94B | 2.26B | 1.53B | 924.74M | 699.68M | 805.77M | 273.35M | 470.27M | 243.41M | 149.31M | 125.51M | 66.15M | 39.9M |
| Operating Margin % | 42.79% | 42.82% | 42.05% | 38.52% | 34.86% | 31.37% | 30.19% | 33.42% | 12.71% | 28.57% | 21.56% | 17.83% | 21.49% | 18.31% | 20.63% |
| Operating Income Growth % | - | 30.95% | 30.45% | 47.81% | 65.14% | 32.17% | -13.17% | 194.78% | -41.87% | 93.2% | 63.02% | 18.96% | 89.75% | 65.8% | - |
| EBITDA | 4.21B | 3.93B | 3.01B | 2.33B | 1.59B | 975.07M | 734.84M | 838.62M | 301.02M | 490.91M | 263.16M | 162.98M | 135.53M | 71.19M | 41.68M |
| EBITDA Margin % | 43.4% | 43.62% | 42.93% | 39.72% | 36.29% | 33.08% | 31.71% | 34.79% | 13.99% | 29.82% | 23.31% | 19.46% | 23.2% | 19.71% | 21.55% |
| EBITDA Growth % | 31.53% | 30.67% | 29.16% | 46.43% | 63.04% | 32.69% | -12.38% | 178.6% | -38.68% | 86.55% | 61.47% | 20.25% | 90.38% | 70.82% | - |
| D&A (Non-Cash Add-back) | 58.8M | 72.6M | 62M | 70.63M | 62.7M | 50.33M | 35.16M | 32.85M | 27.67M | 20.64M | 19.75M | 13.67M | 10.02M | 5.04M | 1.78M |
| EBIT | 4.16B | 3.86B | 2.94B | 2.26B | 1.53B | 924.74M | 699.68M | 805.77M | 291.5M | 477.54M | 245.36M | 149.16M | 127.79M | 65.39M | 40.03M |
| Net Interest Income | 402.4M | 383.4M | 311M | 152.42M | 27.56M | 7.21M | 27.14M | 51.14M | 28.96M | 5.31M | -141K | -3.15M | -6.28M | -7.12M | -7.06M |
| Interest Income | 402.4M | 383.4M | 311M | 152.42M | 27.56M | 7.21M | 27.14M | 51.14M | 31.67M | 8.09M | 3M | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.7M | 2.78M | 3.14M | 3.15M | 6.28M | 7.12M | 7.06M |
| Other Income/Expense | 411M | 393.6M | 320.5M | 164.78M | 54.69M | 6.14M | 39.18M | 56.5M | 15.45M | 4.49M | -1.18M | -3.3M | -4M | -7.87M | -6.92M |
| Pretax Income | 4.57B | 4.25B | 3.27B | 2.42B | 1.58B | 930.88M | 738.86M | 862.27M | 288.8M | 474.76M | 242.22M | 146.01M | 121.51M | 58.27M | 32.98M |
| Pretax Margin % | 47.03% | 47.19% | 46.62% | 41.33% | 36.1% | 31.58% | 31.88% | 35.77% | 13.42% | 28.84% | 21.45% | 17.43% | 20.8% | 16.13% | 17.05% |
| Income Tax | 845.6M | 738.3M | 413M | 334.7M | 229.35M | 90.03M | 104.31M | 2.4M | -39.31M | 51.56M | 58.04M | 24.91M | 34.66M | 15.81M | 11.63M |
| Effective Tax Rate % | 18.52% | 17.37% | 12.65% | 13.82% | 14.5% | 9.67% | 14.12% | 0.28% | -13.61% | 10.86% | 23.96% | 17.06% | 28.52% | 27.14% | 35.26% |
| Net Income | 3.72B | 3.51B | 2.85B | 2.09B | 1.35B | 840.85M | 634.56M | 859.87M | 328.12M | 423.2M | 184.19M | 121.1M | 86.85M | 42.46M | 21.35M |
| Net Margin % | 38.32% | 38.99% | 40.73% | 35.62% | 30.87% | 28.52% | 27.38% | 35.67% | 15.25% | 25.71% | 16.31% | 14.46% | 14.87% | 11.75% | 11.04% |
| Net Income Growth % | 22.86% | 23.12% | 36.64% | 54.34% | 60.84% | 32.51% | -26.2% | 162.06% | -22.47% | 129.76% | 52.09% | 39.44% | 104.55% | 98.89% | - |
| Net Income (Continuing) | 3.72B | 3.51B | 2.85B | 2.09B | 1.35B | 840.85M | 634.56M | 859.87M | 328.12M | 423.2M | 184.19M | 121.1M | 86.85M | 42.46M | 21.35M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.92 | 2.75 | 2.23 | 1.65 | 1.07 | 0.66 | 0.50 | 0.66 | 0.25 | 0.33 | 0.16 | 0.10 | 0.08 | 0.02 | 0.01 |
| EPS Growth % | 23.73% | 23.32% | 35.15% | 54.21% | 62.12% | 32% | -24.24% | 160.35% | -23.18% | 106.25% | 60% | 24.07% | 379.76% | - | - |
| EPS (Basic) | - | 2.79 | 2.27 | 1.69 | 1.10 | 0.69 | 0.52 | 0.70 | 0.27 | 0.37 | 0.17 | 0.11 | 0.09 | 0.02 | 0.01 |
| Diluted Shares Outstanding | 1.27B | 1.28B | 1.28B | 1.27B | 1.27B | 1.28B | 1.27B | 1.29B | 1.29B | 1.26B | 1.17B | 1.14B | 873.44M | 1.29B | 1.29B |
| Basic Shares Outstanding | 1.26B | 1.26B | 1.26B | 1.24B | 1.23B | 1.23B | 1.22B | 1.22B | 1.2B | 1.16B | 1.1B | 1.06B | 774.83M | 1.22B | 1.22B |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Hyper-scaler customer concentration
According to recent financial filings, Arista Networks has demonstrated a clear acceleration in top-line performance, with revenue growth climbing from 15.9% in 2024Q2 to 35.1% by 2026Q1, reflecting the company's successful capture of increased infrastructure spending from major cloud service providers and enterprise data center upgrades.
The consistent upward trend in year-over-year revenue growth suggests that Arista is effectively capitalizing on the transition to 800G networking architectures. This acceleration appears to be driven by both volume expansion in high-speed switching and a successful diversification strategy into campus environments, which helps mitigate the inherent volatility of hyper-scaler procurement cycles.
As reported in quarterly statements, Arista has maintained a robust gross margin profile, consistently hovering near 64% despite the shifting product mix toward high-volume AI-focused networking hardware, which often carries different cost structures compared to traditional enterprise switching gear and legacy routing platforms.
The stability of these margins indicates significant pricing power derived from the proprietary Extensible Operating System (EOS), which differentiates the company from commodity hardware providers. Investors should monitor whether the increasing competitive pressure from Nvidia’s Ethernet-based solutions forces a trade-off between maintaining these premium margins and defending market share in the AI back-end segment.
Based on the provided income statement data, Arista has successfully scaled its operating income from $639.9 million in 2023Q4 to $1.2 billion in 2026Q1, demonstrating an impressive ability to grow operating profits faster than revenue as the company benefits from its asset-light manufacturing model.
This operating leverage suggests that the company is achieving significant economies of scale in its R&D and SG&A functions, allowing for margin expansion even as it invests heavily in next-generation networking technologies. The ability to maintain an operating margin consistently above 40% implies that the software-centric value proposition remains the primary driver of profitability.
Analysis of the income statement reveals that stock-based compensation has trended upward, reaching $120.9 million in 2026Q1, which warrants careful consideration when evaluating the quality of net income and the true cash-generative capacity of the business relative to reported earnings per share.
While the company remains highly profitable, the rising SBC expense suggests that investors should adjust for non-cash dilution when assessing the sustainability of EPS growth. This trend may indicate an aggressive talent retention strategy, which is common in high-growth technology firms but requires ongoing scrutiny to ensure it does not disproportionately erode shareholder value over the long term.
Quick answers to the most common questions about buying ANET stock.
For fiscal year 2025, Arista Networks, Inc. (ANET) reported total revenue of $9.01B. This represents a 4556.3% increase compared to $193.4M in 2012.
Arista Networks, Inc. (ANET) is profitable, generating $3.51B in net income for the fiscal year ending 2025 with a net profit margin of 39.0%.
Arista Networks, Inc. (ANET) reported an operating income of $3.86B, resulting in an operating profit margin of 42.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Arista Networks, Inc. (ANET) generated $5.77B in gross profit for the year, representing a gross profit margin of 64.1%. This demonstrates the company's core pricing power and production efficiency.