Arista Networks (ANET) Plunges 5.09% on Mixed Earnings

On May 7, 2025, Arista Networks experienced a 5.09% drop in pre-market trading, reflecting investor sentiment following the company's first-quarter earnings report released after Tuesday's closing bell.

Arista Networks reported quarterly earnings of 65 cents per share, surpassing analyst estimates of 60 cents. However, the company's revenue of $2 billion fell short of the consensus estimate of $2.02 billion. The non-GAAP gross margin stood at 64.1%, slightly lower than the previous quarter's 64.2%.

CEO Jayshree Ullal highlighted the company's achievements, noting that despite uncertainties around tariffs, Arista Networks surpassed $2 billion in revenue for the first time in Q1 2025. The company's focus on innovation, growth, and profitability was reflected in its results. Arista Networks anticipates second-quarter revenue of $2.1 billion, slightly below the $2.11 billion estimate.

Recent insider trading activities have also caught the attention of investors. On May 1, 2025, board member Giancarlo Charles H sold 6,400 shares at $88.74 per share and an additional 1,600 shares at $87.97 per share. These transactions, along with other insider sales, may have contributed to the market's cautious stance.