Financial Performance - Total revenue for the second quarter was $2.21 billion, representing a year-over-year increase of 30.4% and exceeding estimates of $2.11 billion [2][5] - Adjusted EPS for the second quarter was 73 cents, surpassing estimates of 65 cents [5] - Gross margin for the second quarter was reported at 65.2% [2] Cash Position - Arista Networks ended the quarter with $2.23 billion in total cash and cash equivalents [2] Market Reaction - Following the earnings report, Arista Networks shares rose by 14.46% in after-hours trading, reaching $135.20 [3] Future Guidance - The company expects third-quarter revenue to be approximately $2.25 billion, which is above the estimates of $2.09 billion [3] Strategic Positioning - The CEO, Jayshree Ullal, stated that Arista is well-positioned in data-driven AI networking, emphasizing the company's focus on transformational innovation [2][3]

Investor Presentation August 2025 Safe Harbor Forward-Looking Statements - This presentation and accompanying oral presentation contain "forward-looking statements" regarding our future performance, including but not limited to estimates regarding revenue, non-GAAP gross margin, and non-GAAP operating margin for the third quarter and fiscal year 2025, statements regarding Arista's addressable market, products and services, innovation and leadership in data-driven AI networking. Forward-looking statements ar ...

Exhibit 99.1 Arista Networks, Inc. Reports Second Quarter 2025 Financial Results SANTA CLARA, Calif.- August 5, 2025 -- Arista Networks, Inc. (NYSE: ANET), an industry leader in data-driven, client- to-cloud networking for large AI, data center, campus, and routing environments, today announced financial results for its second quarter ended June 30, 2025. Second Quarter Financial Highlights "Arista is well-positioned in data-driven AI networking, from client to cloud," said Jayshree Ullal, Chairperson and C ...

Core Insights - Arista Networks, Inc. (ANET) is set to report second-quarter 2025 earnings on August 5, with revenue and earnings estimates at $2.11 billion and $0.65 per share respectively [1][6] - Earnings estimates for Arista have increased by 0.8% to $2.58 per share for 2025 and by 1% to $2.97 for 2026 over the past 60 days [1] - The company has a strong earnings surprise history, averaging 11.8% over the last four quarters, with a recent surprise of 10.2% [2][6] Earnings Estimates and Trends - Current earnings estimates for Q2 2025 remain unchanged at $0.65 per share, with a slight increase in long-term estimates for 2025 and 2026 [2] - The earnings surprise history shows consistent outperformance against estimates, with the most recent quarter showing a 10.17% surprise [3] Factors Influencing Results - Strong demand driven by AI and software upgrades is expected to contribute to Q2 growth and long-term revenue increases [6][10] - Arista is a leader in the 100-gigabit Ethernet switching market and is gaining traction in 200- and 400-gig high-performance switching products [7] Product Innovations - The company has introduced new solutions aimed at enhancing AI-driven enterprise products, including a compact fanless 12-port PoE switch and ruggedized outdoor Wi-Fi 7 access points [9][10] - These innovations are designed to improve operational efficiency and support the growing demands of AI infrastructures [10] Market Performance - Over the past year, Arista's stock has increased by 54.4%, outperforming the industry average of 45.9% and competitors like Hewlett Packard and Cisco [11] Valuation Metrics - Arista's shares are currently trading at a forward price/earnings ratio of 43.96, which is higher than the industry average of 39.57 and its own historical mean of 35.92 [14] Competitive Landscape - The company faces significant competition in the cloud networking space, particularly from Cisco, which holds a dominant position in the data center networking market [18] Long-term Outlook - With strong fundamentals and a focus on quality and operational execution, Arista is well-positioned for long-term growth in the data-driven cloud networking sector [19] - The company’s emphasis on continuous portfolio enhancements and robust demand trends is likely to drive future revenue growth [19][20]

Investment Focus - The report highlights Amazon (AMZN US) as a top pick due to its leading position in the cloud industry with a 30% global market share, stable margin improvements, and strong demand for its T3 inference capabilities [1] - Alphabet (GOOGL US) is favored for its AI and advertising synergy, expected margin improvements in IaaS cloud services, and strong self-developed capabilities, although its stock price upside is currently limited [1] - Arista (ANET US) is recognized for its leadership in high-speed data center switches and expected revenue contributions from AI backend switch business, with a significant growth visibility [1] - Meituan (3690 HK) is noted for its strong cash flow generation ability and competitive cost structure, positioning it well in the face of industry competition [1] - Lenovo (992 HK) is highlighted for its record revenue in AI server business and significant growth potential compared to peers like Dell [2] - NVIDIA (NVDA US) is recognized for its strong financial performance and technological leadership in data center business, with a focus on emerging applications driving growth [2] - Tencent (700 HK) is expected to benefit significantly from AI advancements, with an upward revision in revenue and profit expectations for 2025 [2] - New Oriental (EDU US) is noted for its diverse revenue sources and strong brand recognition, supporting its high profit margins [3] - AIA (1299 HK) is favored for its steady growth in new business value and strong operational metrics, particularly in the ASEAN market [3] - Futu (FUTU US) is expected to see significant growth in paid user numbers and total AUM, supported by its low commission model and quality customer service [3] - The report emphasizes the potential of Chinese pharmaceutical companies like China Biologic Products (1177 HK) and Innovent Biologics (1801 HK) in their innovative drug pipelines and market leadership [4]

Core Viewpoint - Arista Networks is experiencing significant analyst upgrades due to its AI-driven data center innovations and strong revenue growth, with a stock rebound of over 30% in the last three months, nearing its all-time peak [1] Group 1: Q2 Expectations - Q2 sales for Arista Networks are projected to increase by 25% to $2.11 billion from $1.69 billion year-over-year [2] - Q2 earnings are also expected to rise by 25% to $0.65 per share compared to $0.52 in the prior period [2] Group 2: Sales Performance - Arista Networks has exceeded sales estimates for 22 consecutive quarters and has met or surpassed the Zacks EPS Consensus since 2014, with an average sales surprise of 2.61% and earnings surprise of 11.82% over the last four quarters [3] Group 3: Revenue Growth - The company's revenue is expected to grow by 19% this year and by another 17% in fiscal 2026, reaching $9.76 billion [4] - Since the pandemic, Arista Networks' revenue has increased over 200%, with 2020 sales at $2.31 billion, driven by major cloud players like Microsoft and Alphabet [7] Group 4: EPS Outlook - Earnings per share (EPS) is expected to grow by 13% in FY25 and by another 15% in FY26 to $2.97 per share, with recent estimates trending higher [8] - Current EPS estimates for the upcoming quarters and years are stable, with Q2 at $0.65 and FY25 at $2.58 [9] Group 5: Stock Performance - Arista Networks' stock is currently rated as a Zacks Rank 1 (Strong Buy) due to positive earnings estimate revisions, indicating potential for further upside as Q2 results approach [10]

Core Viewpoint - The rise of generative artificial intelligence (AI) has significantly benefited companies like Arista Networks, which specializes in networking solutions for data centers and cloud environments, leading to substantial stock performance and growth opportunities [1][2]. Company Performance - Arista Networks has seen its stock price increase by 50% over the past year and 243% since late 2022, coinciding with the AI boom [2]. - In the first quarter, Arista reported revenue of $2 billion, a 28% year-over-year increase, and earnings per share (EPS) of $0.65, reflecting a 30% jump [9]. - The company has provided a bullish forecast for the second quarter, expecting revenue growth of 24% to $2.1 billion [10]. Product Innovation - Arista has developed advanced networking solutions, including the Distributed Etherlink 7700 AI platform, which connects up to 10,000 GPU clusters, optimizing AI application performance [7]. - The introduction of the Arista Etherlink AI platforms aims to enhance network performance for demanding AI workloads [6]. Market Position and Recognition - Arista Networks is recognized as a leader in the industry, being named a Visionary in Gartner's Magic Quadrant and receiving accolades for its network management tools and security strategies [8]. - The company is well-positioned to capitalize on the growing demand for AI-driven data center solutions, as operators upgrade their facilities [9]. Analyst Sentiment - A majority of analysts (76%) maintain a buy or strong buy rating for Arista Networks, indicating confidence in the stock's potential for further gains [15]. - J.P. Morgan's analyst has set a price target of $130, suggesting an 11% upside from recent closing prices, citing strong results and increased guidance [16]. Valuation Considerations - Arista Networks currently trades at a high valuation of 50 times earnings, with a price/earnings-to-growth (PEG) ratio of 1.6, indicating a premium valuation compared to historical norms [17]. - Despite the high valuation, the company's long-term performance has significantly outpaced the broader market, with a 690% gain over the past five years [18].

Industry Overview - Cloud computing has become a significant driver of innovation and digital transformation, allowing users to access and store data over the Internet without managing physical servers [2][3] - The global cloud computing market is projected to grow from $752.4 billion in 2024 to $2,390.2 billion by 2030, representing a CAGR of 20.4% [6] Cost Efficiency - Cloud computing eliminates fixed capital expenses related to hardware and software purchases, reducing operating costs associated with maintaining onsite data centers [4] - The pay-per-use pricing model allows enterprises to only pay for the computing resources they utilize, enhancing cost-effectiveness [4] Service Categories - Cloud computing services are categorized into four main types: IaaS, PaaS, serverless, and SaaS, each offering varying levels of control and flexibility [5] Major Players Microsoft Corporation - Microsoft Azure provides a wide range of IaaS and PaaS solutions, with increased availability in over 60 regions globally [9][10] - The company is heavily investing in AI-powered cloud services, integrating various AI solutions into Azure [12] Amazon.com, Inc. - Amazon Web Services (AWS) is a leading player in the cloud computing market, offering over 200 services and maintaining a strong customer base [13][14] - AWS aims to enhance its AI and ML capabilities to improve decision-making and expand its global infrastructure [15] International Business Machines Corporation (IBM) - IBM has strengthened its position in the hybrid cloud market through acquisitions like Red Hat, which enhances its cloud and data platform offerings [16][17] - The company is expected to benefit from strong demand for hybrid cloud and AI solutions, driving growth in its Software and Consulting segments [18] Arista Networks Inc. - Arista specializes in cloud networking solutions, providing high-capacity, low-latency platforms that support various cloud management frameworks [19][20] - The company has introduced cognitive Wi-Fi software and continues to expand its multi-cloud and cloud-native software product family [21][22]

Industry Overview - The Internet Software and Services sector is experiencing growth due to increased IT spending on solutions that support hybrid operating environments [1] - The penetration of mobile devices among users is driving businesses to invest in web-based infrastructure, applications, and security software [1] - The Internet Software industry is currently ranked in the top 32% of Zacks Industry Rank, indicating an expectation to outperform the market in the next three to six months [2] Company Summaries UiPath Inc. (PATH) - UiPath offers an end-to-end automation platform with a range of robotic process automation solutions, primarily in the US and Europe [6] - The platform incorporates AI, ML, and NLP capabilities to enhance decision-making and information processing, with new generative AI features introduced [7] - Expected revenue and earnings growth rates for the current year are 8.5% and 5.7%, respectively, with a 7.7% improvement in the Zacks Consensus Estimate for earnings over the last 60 days [8] Calix Inc. (CALX) - Calix provides cloud and software platforms for broadband service providers across various regions [9] - The Calix Cloud platform includes configurable solutions for revenue-generating services and applications [10] - Expected revenue and earnings growth rates for 2025 are 15.3% and over 100%, respectively, with a 25.6% improvement in the Zacks Consensus Estimate for earnings over the last seven days [11] Arista Networks Inc. (ANET) - Arista Networks is positioned for cloud and AI networking with a focus on proactive products and zero-touch automation [12] - The EOS Smart AI Suite and Arista AVA enhance AI job monitoring and network security [13] - Expected revenue and earnings growth rates for the current year are 19.3% and 13.7%, respectively, with a 0.4% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [14] HubSpot Inc. (HUBS) - HubSpot provides a cloud-based CRM platform and is seeing multi-hub adoption from enterprise customers [15] - The integration of HubSpot AI features is adding value for customers, with a pricing model that lowers barriers for new users [16] - Expected revenue and earnings growth rates for the current year are 15.4% and 15.2%, respectively, with a 2.3% improvement in the Zacks Consensus Estimate for earnings over the last 90 days [17] NICE Ltd. (NICE) - NICE is benefiting from its cloud business and the adoption of AI-powered solutions to enhance customer experience [18] - Investments in automation and analytics are strengthening its competitive edge [19] - Expected revenue and earnings growth rates for the current year are 7% and 11.2%, respectively, with a 1.6% improvement in the Zacks Consensus Estimate for earnings over the last 90 days [19]

Core Viewpoint - Analysts on Wall Street have a strong preference for artificial intelligence (AI) stocks, with Arista Networks being a standout favorite among them [1][2]. Group 1: Analyst Sentiment - Arista Networks has seen increased enthusiasm from analysts, particularly in July, following upgrades in June [4]. - JPMorgan raised its price target for Arista Networks from $117 to $130 on July 17, while Citigroup increased its target from $112 to $123 on July 11 [8]. - Wolfe Research initiated coverage on Arista Networks with an outperform rating on July 7 [8]. Group 2: Market Demand and Projections - The demand for Arista Networks' industry-leading switches is high as data centers enhance their computing infrastructure to support AI [6]. - The company's total addressable market is projected to grow from $41 billion in 2024 to $70 billion in 2028 [6]. - Analysts' price targets are based on expectations of strong cloud spending in the second half of 2025 and a growing Ethernet switching market [5].