Arista Networks, Inc. (ANET has recently demonstrated remarkable financial performance, reporting record revenue of $7 billion for the full year 2024, a significant +19.5% increase compared to the $5.86 billion reported in 2023. This substantial top-line expansion underscores the company's ability to capitalize on surging demand within key segments, particularly high-performance networking solutions essential for modern data centers and burgeoning AI workloads. The financial outcomes, released on February 18, 2025, signal strong momentum heading into the current fiscal year and reflect effective execution against strategic priorities.

This growth trajectory is not an isolated event but part of a consistent trend. Over the past three fiscal years (2022-2024), ANET has achieved an impressive revenue compound annual growth rate (CAGR) of +33.43%, according to data sourced from Monexa AI. This historical performance provides a crucial backdrop, indicating that the recent +19.5% growth, while still robust, represents a slight deceleration from the peak growth rates experienced during periods of intense data center build-outs and supply chain recovery. However, it remains well above the future revenue CAGR of +18.99% estimated by analysts for upcoming years, suggesting market confidence in continued, albeit perhaps more normalized, expansion.

Financial Performance Deep Dive#

The strength of ANET's financial position extends beyond revenue growth. The company has consistently demonstrated high levels of profitability. For the full year 2024, the reported gross profit stood at $4.49 billion, translating to a gross profit margin of 64.13%. This represents an expansion from the 2023 gross margin of 61.95% and the 2022 margin of 61.07%, indicating improved cost management or favorable product mix shifts. The operating income reached $2.94 billion in 2024, resulting in an operating income margin of 42.05%, a notable increase from 38.52% in 2023 and 34.86% in 2022. Similarly, the net income for 2024 was $2.85 billion, yielding a net income margin of 40.73%, up from 35.62% in 2023 and 30.87% in 2022. These expanding margins highlight ANET's operational efficiency and pricing power within its niche.