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Arista Reports First Quarter Above $3 Billion and Unveils 1.6 Tbps AI Switches

Raised guidance and liquid‑cooled 7060XE7 platforms signal stronger near‑term demand for high‑bandwidth, power‑efficient AI networking.

Overview

  • Arista posted record second‑quarter revenue of $3.036 billion with net income of $1.213 billion and non‑GAAP diluted EPS of $1.02.
  • Management introduced the 7060XE7 series offering 1.6 terabit ports and up to 100 terabits of system bandwidth with optional liquid cooling for large AI clusters.
  • Gross profit rose to $1.91 billion even as GAAP gross margin fell to 62.9% and non‑GAAP gross margin fell to 63.4% because of product mix and cost shifts.
  • Operating income strengthened with GAAP operating margin at 45.4% and non‑GAAP margin at 49.9%, and the company guided Q3 revenue around $3.3 billion with non‑GAAP EPS of $1.06–$1.08.
  • Investors pushed ANET higher after the report, reflecting confidence that cloud providers and large enterprises will keep investing in faster, more efficient networking for AI and data‑center workloads.