Arista (ANET) Surpasses Earnings Estimates, Announces $1.2 Billion Buyback in Latest Financial Triumph

• Arista Networks (ANET) reported first quarter earnings and revenue that exceeded consensus estimates and announced a new $1.2 billion stock buyback.
• The company’s stock rose more than 7% to 295.01 in extended trading, following the announcement.
• Analysts expect Arista’s revenue growth to slow to 12% in 2024 from nearly 34% in 2023.

Arista Networks beats Q1 estimates and announces $1.2 billion stock buyback, driving a 7% rise in stock price. The company’s future growth is expected to be boosted by investments in AI infrastructure.

Arista Stock: Guidance Slightly Above Views

For the three months ended March 31, Arista earnings rose 39% to $1.99 per share. Revenue jumped 16% to $1.57 billion, beating analysts’ estimates of $1.74 per share on an adjusted basis with revenue of $1.55 billion. For the current quarter ending in June, Arista predicted revenue of $1.635 billion at the midpoint of guidance, slightly above estimates of $1.62 billion.

Artificial Intelligence Upside Expected

Analysts believe Arista is gaining ground in the enterprise market, comprising large companies, government agencies, and educational institutions. By 2025, some analysts expect ANET stock to benefit from customer investments in artificial intelligence infrastructure. Internet data centers will require more computing power and network bandwidth to process AI workloads. Arista management has forecast $750 million in AI-related sales for 2025.

Conclusion

Arista Networks’ Q1 earnings and revenue beat estimates, driving a rise in stock price. The company’s future growth is expected to be boosted by investments in AI infrastructure, with management forecasting $750 million in AI-related sales for 2025. However, analysts expect the company’s revenue growth to slow down in the coming years.