Arista Networks, Inc. stock research
FY2025 Q2
Arista Networks (ANET) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross profit and gross margin improved sequentially but gross margin was slightly weaker relative to the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross profit and gross margin improved sequentially but gross margin was slightly weaker relative to the year-ago period.
- Revenue grew at a faster pace than cost of revenue on a sequential basis, supporting gross margin expansion. On a year-over-year basis, cost of revenue increased at a slightly higher rate relative to revenue, resulting in a marginally lower gross margin.
- Sequentially, gross margin improved as revenue growth outpaced cost of revenue growth. Compared to the same quarter last year, gross margin decreased modestly despite higher revenue and gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.2%
Gross profit
$1.4B
Revenue
$2.2B
Cost of revenue
$766.2M
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $2.2B | $1.4B | $766.2M | 65.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.6 pts
Year-over-year change
Jun 30, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue grew at a faster pace than cost of revenue on a sequential basis, supporting gross margin expansion. On a year-over-year basis, cost of revenue increased at a slightly higher rate relative to revenue, resulting in a marginally lower gross margin.
Sequentially, gross margin improved as revenue growth outpaced cost of revenue growth. Compared to the same quarter last year, gross margin decreased modestly despite higher revenue and gross profit.
Monitor the trend in gross margin relative to the year-ago level for further changes.