The earnings call reflected strong revenue and earnings growth, driven by AI networking expansion and improved gross margins. However, challenges such as slower progress with one AI customer and extended semiconductor lead times were noted. Overall, the positive growth and strategic advancements in AI networking suggest a positive sentiment.

Company Guidance

During Arista Networks' Q3 2024 earnings call, the company provided guidance for the fourth quarter, projecting revenues between $1.85 billion and $1.9 billion, with a gross margin of approximately 63% to 64% and an operating margin around 44%. The company highlighted a strong Q3 performance, with total revenues reaching $1.81 billion, marking a 20% year-over-year increase, and a record non-GAAP earnings per share of $2.40. Services and software contributed 17.6% to the revenue, while international revenues accounted for approximately 18%. Arista also discussed its Arista 2.0 strategy and projected 2025 revenue of approximately $8 billion, with a targeted annual growth rate of 15% to 17%. The company emphasized its AI-related growth, aiming for $750 million in AI-related back-end networking and an additional $750 million in front-end AI network revenue by 2025.

Record Revenue and Earnings

Arista Networks reported revenues of $1.81 billion for Q3 2024, marking a 20% year-over-year increase. The company also achieved a record non-GAAP earnings per share of $2.40.

Strong Gross Margin

The company's non-GAAP gross margin was 64.6%, above the upper range of guidance and an improvement from 63.1% in the previous year.

AI Networking Expansion

Arista's AI networking strategy is progressing well, with 3 out of 5 major AI trials moving from trials to pilots, expected to become 50,000 to 100,000 GPU clusters in 2025.

Guidance for Continued Growth

For Q4 2024, Arista is guiding revenues between $1.85 billion to $1.9 billion, with a gross margin of approximately 63% to 64% and an operating margin of approximately 44%.

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Arista Networks (ANET) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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ANET Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 13, 2025	2024 (Q4)	0.56 / -	0.52	―	―	―
Nov 07, 2024	2024 (Q3)	0.52 / 0.60	0.458	31.00% (+0.14)
Jul 30, 2024	2024 (Q2)	0.49 / 0.53	0.395	32.91% (+0.13)
May 07, 2024	2024 (Q1)	0.43 / 0.50	0.358	39.11% (+0.14)
Feb 12, 2024	2023 (Q4)	0.43 / 0.52	0.352	47.73% (+0.17)
Oct 30, 2023	2023 (Q3)	0.40 / 0.46	0.312	46.79% (+0.15)
Jul 31, 2023	2023 (Q2)	0.36 / 0.40	0.27	46.30% (+0.13)
May 01, 2023	2023 (Q1)	0.34 / 0.36	0.21	70.48% (+0.15)
Feb 13, 2023	2022 (Q4)	0.30 / 0.35	0.205	71.71% (+0.15)
Oct 31, 2022	2022 (Q3)	0.26 / 0.31	0.185	68.65% (+0.13)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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ANET Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$107.76	$100.11	-7.10%
Jul 30, 2024	$77.86	$86.64	+11.28%
May 07, 2024	$68.50	$72.92	+6.45%
Feb 12, 2024	$70.22	$66.38	-5.47%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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