Arista(US:ANET)2025-11-04 21:08Financial Performance - Revenue for Q3 2025 was $2.308 billion, representing a 4.7% increase from Q2 2025 and a 27.5% increase from Q3 2024[5] - GAAP net income for Q3 2025 was $853.0 million, or $0.67 per diluted share, compared to $747.9 million, or $0.58 per diluted share in Q3 2024[5] - Non-GAAP net income for Q3 2025 was $962.3 million, or $0.75 per diluted share, compared to $769.0 million, or $0.60 per diluted share in Q3 2024[5] - Non-GAAP EPS growth for Q3 2025 was 25% year-over-year, reflecting strong demand and disciplined execution[3] - GAAP gross profit for Q3 2025 was $1,490.2 million, up from $1,161.7 million in Q3 2024, representing a 28.4% increase[21] - Non-GAAP net income for the nine months ended September 30, 2025, reached $2,712.0 million, compared to $2,079.4 million in the same period of 2024, reflecting a 30.5% growth[21] - GAAP diluted net income per share for Q3 2025 was $0.67, up from $0.58 in Q3 2024, a 15.5% increase[21] - The company reported a net cash provided by operating activities of $3,110.0 million for the nine months ended September 30, 2025, compared to $2,677.3 million in 2024, a growth of 16.1%[27] Margins - GAAP gross margin for Q3 2025 was 64.6%, slightly down from 65.2% in Q2 2025 and up from 64.2% in Q3 2024[5] - Non-GAAP gross margin for Q3 2025 was 65.2%, compared to 65.6% in Q2 2025 and 64.6% in Q3 2024[5] - For Q4 2025, the company expects revenue between $2.3 billion and $2.4 billion, with a non-GAAP gross margin of 62-63% and a non-GAAP operating margin of 47-48%[10] Assets and Liabilities - Total current assets increased to $15,184.8 million as of September 30, 2025, from $11,910.9 million at the end of 2024, marking a 27.0% rise[25] - Cash and cash equivalents decreased to $2,326.6 million from $2,762.4 million, indicating a decline of 15.8%[25] - Total liabilities rose to $6,141.7 million as of September 30, 2025, compared to $4,049.1 million at the end of 2024, an increase of 51.6%[25] - Deferred revenue increased significantly to $3,520.7 million in Q3 2025 from $1,727.3 million in Q4 2024, a rise of 103.4%[25] Expenses - Stock-based compensation expense for the nine months ended September 30, 2025, was $306.1 million, compared to $254.6 million in the same period of 2024, an increase of 20.2%[21] Corporate Developments - Arista Networks appointed Kenneth Duda as President and Chief Technology Officer, and Tyson Lamoreaux as Senior Vice President of Cloud and AI Networking[5] - The company announced the introduction of AI agents to streamline network operations and an observability blueprint for modern AI workloads[5] - Arista Networks is collaborating with industry leaders to deliver Ethernet for Scale-Up Networks (ESUN), promoting open standards-based solutions[5] Business Combinations - The company completed cash paid for business combinations amounting to $300.0 million during the nine months ended September 30, 2025[27]