Arista Networks: Can its Cloud Titan Engagement & Expansion Bolster Growth In Foreseeable Future? 

Arista Networks’ results for the fourth quarter of 2024 reflect significant strides and some challenges in various segments. The company reported revenue of $1.93 billion for the quarter, contributing to an annual growth of approximately 19.5%, surpassing its initial forecast of 10-12% amidst robust AI-related demand. This performance helped achieve a non-GAAP operating margin of 47.5%, marking a solid financial standing. The company’s gross margins in Q4 stood at 64.2%, slightly above the guidance range but down from the previous year, primarily attributed to an efficient supply chain but impacted by mixed revenue and tariffs on imports from China. Arista’s strong performance was driven by its core cloud AI and data center products, which represented 65% of total revenue. The company also increased its market share in the high-speed Ethernet segments, highlighting its competitive strength.