Arista Networks — Income Statement, Cash Flows & Balance Sheet
Is Arista Networks profitable?
Arista Networks delivered exceptional revenue growth with industry-leading profit margins.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total Revenue | $7,003.1M | $9,005.7M | +28.6% |
| Gross Profit | $4,491.3M | $5,768.7M | +28.4% |
| Gross Margin | 64.1% | 64.1% | Flat |
| Operating Income | $2,944.6M | $3,856.1M | +31.0% |
| Operating Margin | 42.0% | 42.8% | +0.8 pts |
| Net Income | $2,852.1M | $3,511.4M | +23.1% |
Revenue grew by nearly 29% and operating profit kept pace, meaning Arista is scaling efficiently — every additional dollar of revenue is flowing through to profit at roughly the same rate. Net income growth lagged operating income slightly because the effective tax rate rose from 12.7% to 17.4%, largely due to smaller tax benefits from employee stock awards in 2025.
Where does Arista Networks' revenue come from?
The Americas — overwhelmingly the U.S. — drives the vast majority of revenue, with all geographies growing strongly.
| Geography | 2024 | 2025 | Change |
|---|---|---|---|
| Americas | $5,729.0M | $7,122.1M | +24.3% |
| EMEA | $713.2M | $1,070.3M | +50.1% |
| Asia Pacific | $560.9M | $813.3M | +45.0% |
| Total | $7,003.1M | $9,005.7M | +28.6% |
While the Americas remains the dominant revenue base, international regions are growing materially faster — EMEA and Asia Pacific both expanded by roughly 45–50%. That said, the filing also discloses that two customers alone account for roughly 42% of total revenue (16% and 26% respectively), which is a notable concentration risk worth monitoring.
Does Arista Networks generate cash?
Arista is a prolific cash generator, and it returned a record amount to shareholders in 2025.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Operating Cash Flow | $3,708.2M | $4,371.9M | +17.9% |
| Capital Expenditures | $32.0M | $119.5M | +273.4% |
| Free Cash Flow (GAAP) | ~$3,676.2M | ~$4,252.4M | +15.7% |
| Share Repurchases | $423.6M | $1,603.1M | +278.4% |
Operating cash flow comfortably exceeded net income, boosted by a massive surge in deferred revenue (customers paying upfront for future services). Capital spending jumped due to an ongoing headquarters construction project, though it remains modest relative to earnings. Arista chose to return significantly more capital to shareholders through buybacks, spending nearly four times as much as the prior year.
How strong is Arista Networks' balance sheet?
Arista carries no debt and holds an enormous liquid asset cushion — the balance sheet is fortress-like.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Cash & Equivalents | $2,762.4M | $1,963.9M | -$798.5M |
| Marketable Securities | $5,541.1M | $8,779.1M | +$3,238.0M |
| Total Liquid Assets | $8,303.5M | $10,743.0M | +29.4% |
| Total Debt | $0 | $0 | — |
| Deferred Revenue (Total) | $2,791.4M | $5,372.4M | +92.4% |
| Stockholders' Equity | $9,994.8M | $12,370.5M | +23.8% |
Arista holds no financial debt whatsoever, and its combined cash and investment portfolio grew substantially year-over-year. The near-doubling of deferred revenue — money already collected but not yet recognised as revenue — represents a strong built-in backlog that underpins near-term revenue visibility. The balance sheet is a clear strength.