Arista Networks (ANET) reported third-quarter earnings and revenue that topped analyst estimates. Arista stock climbed as the company also announced a 4 for 1 stock split.
The maker of computer network gear reported Arista earnings after the market close on Thursday.
For the three months ended Sept. 30, Arista earnings rose 31% to $2.40 per share on an adjusted basis. Also, revenue rose 7% to $1.81 billion. Sales growth decelerated for the seventh straight quarter.
Analysts estimated earnings per share of $2.08 on revenue of $1.76 billion.
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Revenue Guidance For Arista Stock
For the current quarter ending in December, Arista predicted revenue in a range of $1.85 billion to $1.90 billion, versus estimates of $1.81 billion.
On the stock market today, Arista stock fell more than 6% to 404 in extended trading.
Heading into the earnings report, Arista stock had advanced nearly 83% in 2024, according to IBD Stock Check-up.
Arista sells computer network switches that speed up communications in internet data centers. Its chief rivals are Cisco Systems (CSCO) and Juniper Networks (JNPR).
For 2025, Arista has been projecting $750 million in artificial-intelligence-related revenue. Most of that is expected to come from Ethernet networking technology to connect the clusters of AI servers in cloud computing data centers.
Arista Stock: Product Deferred Revenue Metric
Also, Arista is not hosting an investor day in late November, unlike last year. Some analysts have been looking for an update on expected AI revenue or preliminary full-year 2025 guidance on the Q3 earnings call.
One financial metric related to 2025 AI orders important to watch is product deferred revenue, said an Evercore ISI report.
Also, Arista’s biggest customers are Microsoft (MSFT) and Facebook-parent Meta Platforms (META). Further, Arista is gaining ground in the so-called “enterprise” market — large companies, government agencies and educational institutions.
Meanwhile, Arista is among AI stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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