Arista Networks (ANET) Company Report

Arista emphasizes its EOS software architecture—multi-process state-sharing, automation, single-binary image—and hardware designs using off-the-shelf chips to deliver ~25% lower power draw versus peers, driving efficiency at scale.
The company sees strong AI networking momentum in three segments: scale-out (Ethernet interconnect for accelerators), scale-across (DCI via 7800 chassis with coherent optics at 400/800 Gb), and emerging scale-up trials for non-NVIDIA accelerators targeting 2027 TAM expansion.
In the campus market (~~$30 billion), Arista targets the high-end enterprise (~~$15 billion), has gained ~2.5% share (approaching 5% in large enterprise), and expects >50% growth next year on continued share gains.
To mitigate supply risks amid surging demand, Arista holds 38–52 week chip purchase commitments, adjusts mix forecasts annually, and leverages third-party brokers to address intermittent shortages.
The firm reiterates revenue ambitions of $1.25 billion in campus and $2.75 billion in AI networking over the next cycle.

Dec 11, 2025, 7:00 PM

Transcript

Arista Networks discusses AI/cloud networking strategy

ANET

Guidance Update

Arista positions itself strongly in AI networking with its EOS software and efficient hardware design, focusing on scale-out (Ethernet interconnect) and scale-across (DCI) segments, while eyeing 2027 TAM expansion from non-NVIDIA accelerator pilots in 2026.
Campus segment sees 50%+ growth guidance, with Arista holding ~2.5% of the $30 billion market and ~5% in large enterprises after entering in 2018 to address demand for automation and visibility.
Deferred product revenue is rising as acceptance terms for large, complex deployments extend from 30 days to 18 months based on project size and customer requirements.
Supply chain risk managed via long-lead 38–52 week chip purchase commitments, requiring annual mix forecasting and occasional broker purchases to mitigate component shortages.

Dec 11, 2025, 7:00 PM

Transcript

Arista discusses AI networking and campus expansion at Barclays conference

ANET

Arista sees strong AI momentum, targeting $2.75 billion in AI-related revenue by focusing on scale-out and scale-across networking and exploring non-NVIDIA accelerators, with pilots in 2026 and material impact in 2027.
The company differentiates through its EOS software and optimized hardware delivering ~25% lower power draw, enhancing automation, visibility, and efficiency at scale.
Arista expects 50%+ growth in its $1.25 billion campus business, leveraging CloudVision, AI-driven features, and high-end enterprise focus to approach 5% share in the large enterprise segment.
Transition to 800 Gb networking is slated for 2026, with investments in liquid cooling, LPO, and CPO technologies to support future data center architectures.
Extended customer acceptance terms (30 days to 18 months) on large, complex deployments have increased the deferred product revenue balance.

Dec 11, 2025, 7:00 PM

Transcript

Arista Networks outlines $105B TAM and diversification strategy

ANET

Revenue Acceleration/Inflection

Guidance Update

Arista is a pure-play networking company approaching $10 billion in revenue with a 20% growth estimate for next year and targets a $105 billion total addressable market across AI, data center, cloud, enterprise, campus, routing, and observability (up from $70 billion).
While Arista’s top two hyperscalers once drove ~40% of revenue, it is diversifying into enterprise and campus, aiming for $800 million in campus revenue in 2025 and $1.25 billion in 2026 (≈5% market share) by replicating its data center strategy.
AI spending is projected at $2.3 trillion from 2022–2035, and Arista anticipates $0.30–$2 of front-end pull-through for every back-end AI dollar, supported by its capabilities across both segments.
Arista plans to pursue future scale-up Ethernet opportunities through the ESUN consortium; this potential market is currently excluded from the $105 billion TAM and may become accretive once standards mature over the next 24 months.

Dec 9, 2025, 3:00 PM

Transcript

Arista Networks outlines growth and AI-driven networking opportunity at Raymond James TMT+C

ANET

Arista targets a $105 billion TAM in networking—up from $70 billion—spanning AI, data center, cloud, enterprise, campus, routing and observability.
The company expects to reach $10 billion in revenue next fiscal year, reflecting a 20% growth rate.
To reduce customer concentration (two customers ~40% of revenue), Arista is diversifying into enterprise and campus, aiming for $800 million in campus revenue in 2025 and $1.25 billion in 2026 (~5% market share).
Positions to capture a $2.3 trillion AI investment (2022–2035) with $0.30–$2 of front-end pull-through per back-end dollar deployed.
Maintains a direct-sales focus while expanding channel-fulfilled and curated channel-led go-to-market models in campus markets.

Dec 9, 2025, 3:00 PM

Transcript

Arista Networks projects $10B revenue and expands TAM to $105B

ANET

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Arista expects to reach $10 billion in revenue next year, reflecting a 20% growth rate as it marks 12 years past its IPO.
Management increased its total addressable market to $105 billion (up from $70 billion), spanning AI, data center, cloud, enterprise, campus, routing, and observability.
To reduce customer concentration, Arista is diversifying beyond its top two clients by scaling enterprise and campus sales, targeting $800 million in campus revenue in 2025 and $1.25 billion in 2026 (≈5% market share).
The AI sector is forecast to see $2.3 trillion in spend from 2022–2035, with Arista estimating a $0.30–$2 network revenue pull-through for each back-end AI dollar.

Dec 9, 2025, 3:00 PM

Transcript

Arista Networks previews fiscal 2026 growth outlook

ANET

Guidance Update

Revenue Acceleration/Inflection

Fiscal 2026 guidance: 20% revenue growth target with 62–64% gross margin and sustaining ~48% operating margin at the midpoint of the year.
Segment targets: Campus revenue set to grow from $0.8 billion in FY25 to $1.25 billion (+50%) and AI data center revenue from ≈$1.5 billion to $2.75 billion (+60–80%).
Deferred revenue and pipeline: Q3 FY25 deferred revenue grew 86%, reflecting current hyperscaler CapEx trends and a typical 12–24 month lag from design win to revenue recognition in 2026–27.
Product and partner strategy: Emphasizes a best-of-breed, chip-agnostic portfolio across front-end and back-end AI, expands campus via direct and channel partners, and offers Blue Box hardware flexibility for custom OS deployments.

Dec 2, 2025, 5:15 PM

Transcript

Arista Networks previews FY26 growth targets at UBS Tech Conference

ANET

Guidance Update

Revenue Acceleration/Inflection

Arista expects 20% revenue growth in FY26, following nearly 27% growth and a 48% operating margin in FY25; it guided a 62–64% gross margin range for next year.
AI infrastructure revenue (front- and back-end) exceeded $1.5 billion in FY25, with a target of $2.75 billion in FY26 (60–80% growth).
Campus networking grew to $800 million in FY25 and is targeting $1.25 billion in FY26 (50% growth) by leveraging refresh cycles and expanded partner channels.
Deferred revenue climbed 86% in Q3, reflecting strong customer CapEx commitments that typically convert to revenue with a 24-month lag.
Arista has increased multi-year purchase commitments to secure Broadcom chip supply and mitigate component tightness for FY26 production.

Dec 2, 2025, 5:15 PM

Transcript

Arista reiterates FY26 20% growth guide at Wells Fargo TMT Summit

ANET

Guidance Update

No supply constraints expected in FY2025–FY2026; management reiterated confidence in 20% revenue growth for FY2026 as early as September.
Q3 deferred revenue up 87%, with product-related deferred revenue growing by $625 million quarter-over-quarter, driven by complex AI data center build-outs extending acceptance cycles to 18–24 months.
Management set FY2025 AI revenue target of $1.5 billion rising to $2.75 billion in FY2026 and campus revenue from $700–$800 million to $1.25 billion, underpinned by expanding deployments across hyperscalers and 15–20 additional customers.

Nov 18, 2025, 6:15 PM

Transcript

Arista outlines AI growth and deferred revenue at Wells Fargo TMT Summit

ANET

Guidance Update

Arista reaffirmed a 20% revenue growth guide for fiscal 2026 and sees no supply constraints due to elevated purchase commitments to secure components.
Deferred revenue rose 87% in Q3 FY 2025 as AI data center build-outs extend project timelines to 18–24 months from a prior 6–12-month cycle.
For FY 2026, Arista set $2.75 billion in AI revenue and $1.25 billion in campus revenue targets, each implying 60%+ segment growth, while the non-AI/non-campus business is modeled conservatively.
The “blue box” strategy delivers Arista’s hardware design, supply-chain and diagnostics advantages under customer-selected network OS, enabling dual-source deployment and future EOS upgrades.

Nov 18, 2025, 6:15 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Arista Networks.

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Arista Networks (ANET)

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