ANET's Margin Expansion Moderates: Can Growth Be Sustained?

Key Takeaways ANET reported a non-GAAP operating margin of 48.2%, up from 47.5% on strong AI networking demand.ANET benefits from AI-driven switch demand and software-led scale, but rising R&D and marketing costs weigh.ANET faces risks from hyperscaler spending exposure, macro pressures, and rising geopolitical uncertainty.Arista Networks Inc. (ANET) reported a non-GAAP operating income of $3.85 billion in 2025, up from $2.94 billion in 2024. Non-GAAP operating margin improves to 48.2% from 47.5% a year ago ...