Arista Networks, Inc. stock research
FY2025 Q1
Arista Networks (ANET) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin remained stable, showing minimal change from both comparison periods.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin remained stable, showing minimal change from both comparison periods.
- The strongest observable margin driver is the stability of gross margin, which held nearly unchanged from both the prior quarter and the year-ago quarter, despite higher revenue and cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.7%
Gross profit
$1.3B
Revenue
$2.0B
Cost of revenue
$728.7M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $1.7B | $1.1B | $593.2M | 64.9% |
| Sep 30, 2024 | $1.8B | $1.2B | $649.2M | 64.2% |
| Dec 31, 2024 | $1.9B | $1.2B | $699.4M | 63.8% |
| Mar 31, 2025 | $2.0B | $1.3B | $728.7M | 63.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.1 pts
Year-over-year change
Mar 31, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the stability of gross margin, which held nearly unchanged from both the prior quarter and the year-ago quarter, despite higher revenue and cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was unchanged.
Monitor the trend in cost of revenue relative to revenue, as its increase alongside stable gross margin suggests cost control is being maintained.