Arista Networks Inc
ANET
Market Cap$124.83B
Close$
Earnings Call Q1 2025
May 6, 2025 - AI Summary
Strong Q1 Performance: Arista Networks reported Q1 2025 revenues of $2.005 billion, a 27.6% increase year-over-year, exceeding expectations. This marks the company's first $2 billion quarter, indicating robust growth driven by demand in cloud computing, AI, and data center enterprises, as well as software and service renewals contributing 17.1% of total revenue.
Guidance and Outlook for Q2: The company anticipates stronger-than-normal seasonality in Q2 2025, forecasting revenues of approximately $2.1 billion with a gross margin of around 63%. They aim to maintain this momentum amid tariff uncertainties and macroeconomic challenges, appreciating current demand levels but expressing caution about potential future impacts.
Challenges from Tariffs: Arista is facing uncertainty due to pending tariffs that could impact their supply chain and pricing strategies. Currently, they are absorbing existing tariffs but foresee potential gross margin impacts of 1-1.5% if no mitigation strategies are implemented. The company emphasizes a cautious approach in navigating this landscape.
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$88.86
12.1% downside
Current Fair Value
12.1% downsideOvervalued by 12.1% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $124.83 Billion |
|---|---|
| Enterprise Value | $125.30 Billion |
| Dividend Yield | $0 (0%) |
| Earnings per Share | $2.27 |
| Beta | 1.38 |
| Outstanding Shares | 1,260,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 41.36 |
|---|---|
| PEG | 149.75 |
| Price to Sales | 20.23 |
| Price to Book Ratio | 12.64 |
| Enterprise Value to Revenue | 16.85 |
| Enterprise Value to EBIT | 39.86 |
| Enterprise Value to Net Income | 41 |
| Total Debt to Enterprise | 0.02 |
| Debt to Equity | 0.23 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Arista Networks Inc
2,300 employees
CEO: Jayshree Ullal Arista Networks is an industry leader in software-driven cloud networking solutions for large data center and campus environments. Arista's award-winning platforms deliver availability, agility, automation analytics and security through ...