Arista Networks

BBH Select Mid Cap ETF named Arista Networks a top contributor after the company reported record Q1 revenue and free cash flow, driven by AI infrastructure demand. Management said deferred revenue from extended customer acceptance cycles temporarily understates reported growth, but clarified underlying demand and maintained gross margin guidance of 62–64% despite rising component costs. BBH highlighted Arista's supply commitments, execution record and potential for new large customers in 2026–27 as reasons for confidence. » Plus sur finance.yahoo.com

Arista Networks presented an expanded AI-network strategy at the Rosenblatt AI Summit and reported a rapid build-out of its Etherlink portfolio: the customer count rose from 4–5 at the start of 2024 to more than 100. The company reaffirmed full-year growth expectations of 12.6% (2024) and an accelerated revenue growth of about 40% in the second half, with an expected gross margin of 62–64% and an operating margin of 48–49%. Management cites scale-out and scale-across as near-term drivers, sees scale-up as a larger market from 2028, and highlights EOS software as a competitive factor; supply constraints and tougher competition remain near-term risks. Arista continues to invest in 800G, 1.6T, XPO and Open CPO, keeps organic R&D as a priority, and limits M&A to targeted talent or capability acquisitions. » Plus sur de.investing.com

Arista Networks reported Q2 revenue of $3.036 billion, up 37.7% year over year, and non-GAAP EPS of $1.02, about 40% higher. Management guided Q3 revenue around $3.3 billion and raised full-year revenue guidance to about $12.6 billion, targeting roughly 40% growth and maintaining an AI fabrics revenue goal of at least $3.5 billion. Non-GAAP gross margin slipped to 63.4% from 65.6% amid higher component costs, while customer concentration remains high (Microsoft 26%, Meta Platforms 16%). At current prices the stock reflects a rich forward valuation (forward P/E roughly 42–48), leading the author to avoid buying immediately despite strong execution. » Plus sur finance.yahoo.com