Arista(ANET) - 2025 Q4 - Annual Results

Revenue Performance - Revenue for Q4 2025 was $2.488 billion, representing a 7.8% increase from Q3 2025 and a 28.9% increase from Q4 2024[5] - Full year revenue reached $9.006 billion, an increase of 28.6% compared to fiscal year 2024[5] - Total revenue for Q4 2025 reached $2,487.8 million, a 29% increase from $1,930.4 million in Q4 2024[27] Net Income - GAAP net income for Q4 2025 was $955.8 million, or $0.75 per diluted share, compared to $801.0 million, or $0.62 per diluted share, in Q4 2024[5] - Non-GAAP net income for Q4 2025 was $1.047 billion, or $0.82 per diluted share, compared to $849.6 million, or $0.66 per diluted share, in Q4 2024[5] - Net income for the twelve months ended December 31, 2025, was $3,511.4 million, up 23% from $2,852.1 million in 2024[27] - Non-GAAP net income for the twelve months ended December 31, 2025, was $3,806.0 million, compared to $2,970.8 million in 2024, reflecting a 28% increase[29] Margins - GAAP gross margin for Q4 2025 was 62.9%, down from 64.6% in Q3 2025 and 63.8% in Q4 2024[5] - GAAP gross margin for Q4 2025 was 62.9%, slightly down from 63.8% in Q4 2024[29] - The company achieved a historic milestone of surpassing $1 billion in quarterly net income, with a 47.5% operating margin[4] - For Q1 2026, the company expects revenue of approximately $2.6 billion, with a non-GAAP gross margin between 62-63% and a non-GAAP operating margin of approximately 46%[11] Assets and Liabilities - Cash and cash equivalents decreased to $1,963.9 million in Q4 2025 from $2,762.4 million in Q4 2024[31] - Total current assets increased to $16,387.0 million in Q4 2025, up from $11,910.9 million in Q4 2024[31] - Total liabilities rose to $7,078.1 million in Q4 2025, compared to $4,049.1 million in Q4 2024[31] Operating Income and Expenses - The company reported a total operating income of $1,032.9 million for Q4 2025, a 29% increase from $799.6 million in Q4 2024[27] - Research and development expenses for the twelve months ended December 31, 2025, were $1,237.3 million, up from $996.7 million in 2024[27] - The company generated $4,371.9 million in net cash from operating activities for the twelve months ended December 31, 2025, compared to $3,708.2 million in 2024[33] Product Developments - Arista Networks unveiled the R4 series platforms for AI and data center networks, focusing on high performance and low power consumption[4] - The company introduced cognitive campus switches designed for industrial edge environments, enhancing operational simplicity[8] - Arista Networks acquired the VeloCloud® SD-WAN portfolio from Broadcom, enhancing its existing product offerings[11]