"In Q2 FY2025, the company delivered revenue of $2.20 billion (up 30.4% YoY) and normalized EPS of $0.73, topping consensus $0.65 by 12.3%.Gross margin reached 65.6%, above the 63-64% guide, while operating margin hit 48.8%.CEO Jayshree Ullal said Arista is "experiencing momentum across AI, cloud, and enterprise," and now sees 2025 as a "once-in-a-lifetime opportunity" to build a transformational networking company."
"1. AI Networking Scale-UpUllal reaffirmed Arista's path to $750 million AI back-end revenue in 2025 and projected total AI-networking revenue above $1.5 billion.Etherlink and EOS now anchor both scale-out and scale-up architectures as Ethernet displaces InfiniBand. Investors will gauge how quickly Arista converts pilots with major hyperscalers into sustained deployments. 2. Hyperscaler and Customer ConcentrationTwo "AI Titan" customers each exceed 10% of sales, yet Ullal emphasized broadening exposure through enterprise and "neocloud" wins-25 to 30 customers now deploying Arista's AI networking solutions."
Arista will report Q3 FY2025 results after the close. In Q2 FY2025 Arista posted $2.20 billion revenue, 30.4% YoY growth, normalized EPS $0.73, 65.6% gross margin, and 48.8% operating margin. CEO Jayshree Ullal cited momentum across AI, cloud, and enterprise and labeled 2025 a once-in-a-lifetime opportunity to build a transformational networking company. CFO Chantelle Breithaupt guided Q3 revenue to $2.25 billion with 64% gross margin and 47% operating margin. Key focus areas include AI-networking scale-up, hyperscaler customer concentration risk, enterprise and campus expansion (including VeloCloud), and whether the record operating margin is sustainable.
Read at 24/7 Wall St.
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