Arista Networks

Arista Networks reported a record Q2 with $3.036 billion revenue, raised 2026 revenue guidance to about $12.6 billion and expects AI fabrics revenue of at least $3.5 billion. Jim Cramer endorsed CEO Jayshree Ullall, calling her a key reason to buy on dips. The company finished the quarter with roughly $13.3 billion in cash but faces risks from customer concentration (Microsoft 26%, Meta 16%), a 220bp year-over-year gross margin contraction, and $9.7 billion of non-cancellable purchase commitments. Continued upside depends on sustained AI spending from hyperscale customers amid competitive pressures from Nvidia and legacy network vendors. » More on finance.yahoo.com

Arista Networks expects 2025 revenue of $12.6bn (up 40%) with gross margins of 62–64% and operating margins around 48%. Order commitments rose over three quarters from $3.6bn to $9.6bn, but supply chains remain strained. Management stresses margin discipline, continued investment in AI-specific networking technology, software and security, and notes that AI procurements can take 18–24 months, which could delay revenue recognition. Arista sees long-term growth potential from hyperscalers, neo-clouds, enterprise and campus networks, and international expansion. » More on de.investing.com

At the Goldman Sachs conference Arista Networks reported a quarter with more than $3 billion in revenue and raised its full-year 2024 revenue forecast to $12.6 billion (about +40%). Multi-year purchase commitments rose to roughly $9.7 billion; the company is targeting $3.5 billion in AI revenue and sees campus business potential above $1.25 billion. Arista keeps its 2026 gross margin forecast at 62–64%, cites persistent chip lead times of about 52 weeks as a bottleneck, and highlights EOS/CloudVision as well as software and system integration as differentiators. » More on de.investing.com