Arista Networks Inc (NYSE:ANET) stock rose 7.26% (As on February 13, 11:31:45 AM UTC-4, Source: Google Finance) after the company’s solid earnings and revenue beat followed by strong guidance above-consensus, thanks to strong demand for client-to-cloud networking in artificial intelligence, data center, campus and routing environments. Non-GAAP gross margin of 63.4%, compared to non-GAAP gross margin of 65.2% in the third quarter of 2025 and 64.2% in the fourth quarter of 2024. Non-GAAP net income of $1.047 billion, compared to non-GAAP net income of $849.6 million in the fourth quarter of 2024.

Meanwhile, in December, Arista announced new campus products including the latest edition of its Virtual ES with Path Aliasing, or VESPA offering, which it said will make it simpler for companies to deploy large-scale mobility domains. It also expanded its agentic AI tool, the Autonomous Virtual Assistant, which automates network operations on behalf of customers. Moreover, Arista Networks Unveiled Next Generation Data and AI Center Networks. The R4 series platforms for AI, data center, and routed backbone deployment deliver high performance, low AI job completion times, low power consumption, and integrated security, while helping customers reduce total cost of ownership. Arista AVA uses Agentic AI to Streamline Network Operations. Arista AVA (Autonomous Virtual Assist) was extended with additional agentic AI capabilities for use cases such as multi-domain event correlation, continuous monitoring, and network troubleshooting. Arista Launched Cognitive Campus Switches for the Industrial Edge. Arista’s new ruggedized platforms bring the power, reliability, and operational simplicity of EOS to demanding industrial or outdoor environments. Further, in FY25 Arista Networks Acquired the VeloCloud SD-WAN Portfolio from Broadcom. VeloCloud enables customers to securely and efficiently interconnect data centers and distributed campus/branch offices while complementing Arista’s existing portfolio.

ANET in the fourth quarter of FY25 has reported the adjusted earnings per share of 82 cents, beating the analysts’ estimates for the adjusted earnings per share of 76 cents. The company had reported the adjusted revenue growth of 29 percent to $2.49 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $2.38 billion.

For the current quarter, Arista said it’s shooting for revenue of around $2.6 billion at the midpoint of its guidance range, well ahead of Wall Street’s $2.46 billion target. For the first quarter of 2026, ANET expect Non-GAAP gross margin to be between approximately 62-63%; and Non-GAAP operating margin to be of approximately 46%.