Arista Networks raises revenue forecast as AI demand fuels data center networking growth

Arista Networks forecasts upbeat revenue as AI speeding lifts demand, shares jump

Feb 12 (Reuters) - Networking equipment provider Arista Networks (ANET.N), opens new tab forecast annual revenue above Wall Street estimates on Thursday, betting on steady demand for its electronic hardware amid the expanding presence of data centers, sending its shares up more than 17% in extended trading. Demand for Arista's ethernet network switches and routers has surged as companies increase their investment in AI infrastructure. Analysts have noted that the company has a strong exposure to major cloud and AI customers, whose capex is expected to keep growing sharply, creating a bigger demand backdrop. Arista Networks makes the high-speed computer networking equipment that powers big data centers, serving cloud and AI titans such as Microsoft (MSFT.O), opens new tab and Meta (META.O), opens new tab, along with enterprise, financial services and specialized cloud provider customers. The company forecast first-quarter revenue of about $2.6 billion, above the analysts' average estimate of $2.45 billion, according to data compiled by LSEG. It reported a fourth-quarter revenue of $2.49 billion, compared with estimates of $2.38 billion. Adjusted profit came in at 82 cents per share, beating estimates of 76 cents per share. Reporting by Kritika Lamba and Anhata Rooprai in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Arista Networks' stock jumps after-hours on another strong earnings and revenue beat - SiliconANGLE

Arista Networks' stock jumps after-hours on another strong earnings and revenue beat A solid earnings and revenue beat followed by strong guidance above-consensus sent shares of Arista Networks Inc. leaping more than 12% in extended trading today. The networking company reported fourth-quarter adjusted earnings of 82 cents per share, comfortably ahead of the 76-cent-per-share analyst forecast. Revenue for the period came to $2.49 billion, up 29% from the year-ago quarter and topping the $2.38 billion consensus, thanks to strong demand for client-to-cloud networking in artificial intelligence, data center, campus and routing environments. Arista Chairperson and Chief Executive Jayshree Ullal (pictured) hailed the company's strong finish to fiscal 2025, saying that the year validates its "Arista 2.0 momentum." She added that the company "exceeded both our AI networking and campus expansion goals, delivering profitable growth and revenue of $9 billion" for the full year. Arista has grown tremendously since the start of the AI boom that followed the emergence of ChatGPT in late 2022. It has become one of the prime beneficiaries of AI demand because it sells the premium data center networking switches and high-performance routers that are critical for the performance of large clusters of graphics processing units. The most powerful large language models are run on thousands of GPUs, and those chips need to work in perfect synchronization with one another. That's what Arista's networking equipment enables, and it's why customers such as Meta Platforms Inc. and Deutsche Börse have bought millions of dollars worth of its products. Investors were pleased to see that Arista's profitability remained strong, even though its margins declined slightly during the quarter. The company delivered net income of $955.8 million, up from $801 million a year earlier, but its gross margin came to 62.9%, down from 64.6% in the third quarter. For the current quarter, Arista said it's shooting for revenue of around $2.6 billion at the midpoint of its guidance range, well ahead of Wall Street's $2.46 billion target. In December, Arista announced new campus products including the latest edition of its Virtual ES with Path Aliasing, or VESPA offering, which it said will make it simpler for companies to deploy large-scale mobility domains. It also expanded its agentic AI tool, the Autonomous Virtual Assistant, which automates network operations on behalf of customers. Arista is keen to grow its presence in campus networking environments. The company is well established in hyperscale data centers, but it has struggled to take market share from rivals like Cisco Systems Inc. in smaller networks that interconnect multiple buildings across locations such as universities, hospitals and business campuses. Today's after-hours gains means Arista's stock is up just over 3% in the year to date, and 23% in the last 12 months.

Arista Networks raises 2026 revenue outlook to $11.25B with 25% growth target amid surging AI demand (NYSE:ANET)

Earnings Call Insights: Arista Networks (ANET) Q4 2025 Management View * CEO Jayshree Ullal highlighted "28.6% growth, driving a record revenue of $9 billion, coupled with non-GAAP gross margin of 64.6% for the year and a non-GAAP operating margin of 48.2%." Ullal emphasized surpassing "150 million cumulative ports of This article was automatically generated by an AI tool based on content available on the Seeking Alpha website, and has not been curated or reviewed by humans. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of such articles cannot be guaranteed. This article is intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Management signals strong growth, boosting 2026 guidance to 25% annual revenue growth and a focus on expanding AI center revenues to $3.25 billion, highlighting robust customer demand and leadership in cloud and AI networking. Management warns of persistent memory shortages and rising costs, prompting increased purchase commitments; these factors threaten gross margin but Arista aims to leverage scale and planning to manage risks. Risks include growth concentration in AI/cloud, deferred revenue timing, operational uncertainty from supply constraints, and volatility in acceptance of large customer deployments.