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Investing.com -- Arista Networks (NYSE:ANET) reported better-than-expected first quarter earnings and revenue, sending shares up 2.5% in after-hours trading. The networking equipment maker also provided upbeat guidance for the second quarter.
For Q1 2025, Arista posted adjusted earnings per share of $0.65, surpassing analyst estimates of $0.59. Revenue came in at $2.01 billion, exceeding the consensus forecast of $1.97 billion and marking a 27.6% increase YoY.
The company’s Q2 2025 revenue guidance of $2.1 billion also topped analyst expectations of $2.031 billion, signaling continued strong demand for its networking solutions.
"As we enter 2025, AI, cloud, and enterprise customers continue to drive network transformation. We surpassed $2B in revenue for the first time in Q1 2025 despite the unknowns around tariffs," stated Jayshree Ullal, Chairperson and CEO of Arista Networks.
Arista’s non-GAAP gross margin for the quarter stood at 64.1%, slightly down from 64.2% in both Q4 2024 and Q1 2024. The company expects Q2 2025 non-GAAP gross margin of approximately 63%.
In a show of confidence, Arista’s Board of Directors authorized an additional $1.5 billion stock repurchase program. The company also completed $787 million in stock buybacks during Q1, the highest level in its history.
CFO Chantelle Breithaupt commented, "With a continued focus on execution, Arista maintained its financial performance of delivering both strong growth and profitability."