Arista Networks Trading Volume Drops 45.66% Despite Record Revenue and Earnings

On May 8, 2025, Arista Networks (ANET) saw a trading volume of $826 million, marking a 45.66% decrease from the previous day. The stock price rose by 0.95%.

Arista Networks reported strong first-quarter 2025 results, with revenues and adjusted earnings increasing year over year. The company's robust demand trends across key verticals such as cloud, AI-focused data centers, and campus enterprises drove this growth. Innovative product launches and steady customer additions, backed by the company’s best-in-class portfolio, ensured top-line expansion. Both the bottom and top lines exceeded the respective estimates.

Arista's GAAP net income for the reported quarter improved to $813.8 million or 64 cents per share from $637.7 million or 50 cents in the year-ago quarter, mainly due to higher revenues. On a non-GAAP basis, net income was a record high at $826.2 million or 65 cents per share compared with $637.7 million or 50 cents in the year-earlier quarter. The bottom line beat the estimate by 6 cents.

Revenues surged to $2 billion from $1.57 billion in the prior-year quarter, driven by strength in the enterprise vertical. The company introduced various solutions for cloud, Internet service providers, and enterprise networks to meet the rising demands of AI/ML-driven network architectures. These innovations enabled Arista to deliver a superior customer experience and increase customer engagement. The top line beat the consensus estimate of $1.96 billion.

Net quarterly sales from Products totaled $1.69 billion compared with $1.32 billion in the year-ago quarter. Service revenues increased to $312.3 million from $242.6 million. Arista witnessed positive demand trends owing to its strong product portfolio, which is highly scalable, programmable, and provides data-driven automation, analytics, and world-class support services.

Net sales from the Americas contributed 80% to total revenues, while international revenues accounted for the remainder. Driven by its relentless pursuit of innovative products, Arista maintains a strong leadership position in the Data Center and Cloud Networking vertical.

For the second quarter of 2025, management expects revenues in the range of $2.1 billion owing to healthy growth momentum. Non-GAAP gross margin is estimated at 63% and non-GAAP operating margin is approximated at 46%. The company expects healthy demand trends in 2025, backed by the strength of its existing portfolio, new product introductions, and healthy traction in the cloud, AI, and enterprise markets. However, the imposition of tariffs can be a headwind in the second half of 2025. For 2025, management reiterated its earlier gross margin guidance of 60-62%.