Arista Networks Achieves Strong Growth, Eyes Future Prospects

Arista Networks reports impressive Q4 2024 results, showcasing nearly 20% revenue growth and robust operating margins. The firm anticipates continued momentum in 2025, fueled by cloud and AI sectors, which positions it favorably amidst market dynamics.

Date: 19-02-2025

AI Rating: 8

Earnings Per Share (EPS): Arista Networks reported a non-GAAP earnings per share of $0.65 for Q4 2024, reflecting a 25% increase from the previous year. For the entire fiscal year 2024, the EPS was $2.27, a 31.2% year-over-year increase, signaling strong performance and profitability for the company.

Revenue Growth: Arista Networks achieved a record revenue of $7 billion for fiscal year 2024, representing an impressive 19.5% growth year-over-year. Q4 2024 revenues totaled $1.93 billion, exceeding guidance expectations of $1.85 billion to $1.9 billion, showcasing robust demand across its product sectors.

Profit Margins: The company maintained strong profitability with a non-GAAP operating margin of 47.5% for the fiscal year and 47% for Q4 2024. The gross margin for Q4 was reported at 64.2%, which is slightly above guidance, reflecting efficient supply chain management and favorable product mix.

Net Income: For Q4 and the entire fiscal year 2024, the net income was reported at $830.1 million, equating to 43% of revenue for the quarter. This result underscores the company’s effective management of costs and operational efficiencies leading to improved bottom-line performance.

Cash Flow and Guidance: Arista generated approximately $1 billion in cash from operations for Q4, further solidifying its robust cash position. The company has also indicated a positive outlook for fiscal year 2025, with guidance suggesting a revenue growth of approximately 17% and a target of about $8.2 billion.

Stocks: ANET