Core Viewpoint - Arista Networks' stock is experiencing gains following earnings reports that indicate the company may be managing supply-chain pressures more effectively than its competitor Cisco Systems [1] Company Summary - Arista Networks is showing resilience in supply-chain management, which is reflected in its stock performance [1] - The positive earnings report suggests a competitive advantage over Cisco Systems in handling supply-chain challenges [1] Industry Summary - The performance of Arista Networks may signal a shift in the competitive landscape within the networking industry, particularly in relation to supply-chain management [1]

Core Viewpoint - The sale of Schroders to U.S. asset manager Nuveen signifies a critical juncture for European money managers, highlighting the need to either consolidate or sell in a competitive global market dominated by U.S. firms [1] Group 1: Sale Details - Schroders, a 222-year-old British fund manager, has decided to sell up to Nuveen, creating one of the world's largest active fund managers with $2.5 trillion in assets [1] - The founding family's 42% stake was previously seen as a barrier to sale, but they ultimately chose to cash out [1] - The deal is expected to prompt further consolidation in Europe's fragmented asset management industry, where the top 10 players control only 25% of assets [1] Group 2: Market Context - U.S. asset managers have been gaining market share by offering low-cost passive products, which has structurally challenged traditional stock-picking firms like Schroders [1] - An index of the largest U.S. asset managers has increased by 40% over the past five years, outperforming many European firms [1] - Analysts suggest that independent players like Schroders are now prime targets for acquisition, with companies like Jupiter, Liontrust, and GAM being highlighted as potential candidates [1] Group 3: Future Deal Expectations - Consultancy Oliver Wyman anticipates an acceleration in mergers and acquisitions in the asset management sector over the next four to five years, predicting 1,500 deals involving firms with at least €1 billion in assets [1] - However, challenges remain, such as acquisition premiums and the difficulty of realizing cost savings in a people-driven business [1] Group 4: Impact on London Financial Hub - The sale of Schroders has raised concerns about the trend of companies leaving London for other financial centers, although the CEO claims the combined group will still invest in the UK [1] - The deal will result in another company exiting the FTSE 100 index following a foreign takeover [1] - The Schroder family will retain some ties to the company, with one member continuing to work in the London office [1]

Core Insights - Arista Networks (ANET) demonstrated strong Q4 earnings, effectively managing growth despite increasing component costs, particularly in memory [1] Company Performance - The company reported Q4 earnings that highlight its ability to balance forward growth with rising costs [1] Industry Context - Arista Networks operates in the AI networking sector, focusing on switches and routers, which are critical for modern networking solutions [1]

Core Insights - Arista Networks (ANET) reported strong Q4 earnings, demonstrating effective management of growth despite increasing component costs, particularly in memory [1] Company Performance - The company is successfully balancing its growth objectives with the challenges posed by rising costs in components [1] Industry Context - The report highlights the resilience of companies in the AI networking sector, particularly in the face of supply chain pressures [1]

RT zerohedge (@zerohedge)After Hours:AMAT +10%...big revs guide above on March qtr and “expect to grow our semiconductor equipment business over 20 percent this calendar year”ABNB +1%...Solid beat and C26 " year-over-year revenue growth to accelerate to at least low double digits”ANET +8%...Solid 1Q guide (4Q Revs +29% y/y, GMs 63.4%)CART +13%...1Q EBITDA and GTV guide ahead of consTWLO -8%...beat/guide aboveROKU +12%...4Q Revs inline, 1Q/FY26 EBITDA guided aboveEXPE -3%...4Q GBs/EBITDA beat but 1Q GBs guid ...

Core Insights - Arista Networks reported strong fourth-quarter results, exceeding revenue and margin targets, driven by momentum in AI-focused data center networking and an expanding campus and routing portfolio [4][6] - The company raised its fiscal 2026 growth outlook, targeting approximately 25% growth to about $11.25 billion, with expectations to double AI networking revenue from 2025 to 2026 [6][15] Financial Performance - Fourth-quarter revenue was $2.49 billion, up 28.9% year-over-year, and full-year revenue reached a record $9 billion, reflecting a 28.6% increase [3][6] - Operating income for the quarter was $1.2 billion, or 47.5% of revenue, contributing to a full-year operating income of $4.3 billion, or 48.2% of revenue [2] - Net income for the quarter was $1.05 billion, marking Arista's first quarter exceeding $1 billion in net income, with diluted EPS of $0.82 [2] Margins and Guidance - Non-GAAP gross margin for the fourth quarter was 63.4%, slightly above guidance but down from 64.2% a year earlier [3] - For fiscal 2026, the company expects non-GAAP gross margin of 62% to 64% and raised the operating margin outlook to approximately 46% [15] Customer and Revenue Mix - Arista's revenue by customer sector includes 48% from cloud and AI titans, 32% from enterprise and financials, and 20% from AI and specialty providers [9] - The company surpassed 150 million cumulative ports shipped in the fourth quarter, with international growth in Asia and Europe rising "north of 40% annually" [7] AI Networking Initiatives - Arista expects to double AI networking revenue to $3.25 billion in 2026, driven by accelerating Etherlink adoption and an imminent shift to 1.6T switching [6][11] - The company is co-designing AI rack systems and has gained over 100 cumulative customers for Etherlink [10] Supply Chain and Deferred Revenue - Executives warned of supply-chain constraints, particularly around memory, indicating a potential one-time price increase on memory-intensive SKUs [5][16] - Total deferred revenue increased to $5.4 billion, up from $4.7 billion, with volatility tied to customer-specific acceptance clauses [21][17] Capital Returns - In Q4, Arista repurchased $620.1 million of shares, totaling $1.6 billion for fiscal 2025, with $817.9 million remaining under the repurchase program [18]

Core Viewpoint - Arista Networks outperformed Cisco Systems in addressing margin concerns and shifting investor focus, resulting in a significant positive market reaction for Arista's stock while Cisco's shares declined sharply [1]. Group 1: Earnings Results - Arista's stock surged by 12% in after-hours trading following its earnings report, indicating strong investor confidence [1]. - In contrast, Cisco's shares fell by 12% during regular trading hours, reflecting negative investor sentiment towards its earnings performance [1].

Market Overview - Major U.S. indexes closed lower, with the Dow Jones Industrial Average down 1.34% to 49,451.98, the S&P 500 down 1.57% to 6,832.76, and the Nasdaq down 2.04% to 22,597.14 [1] Coinbase Global, Inc. - Coinbase stock closed down 7.90% at $141.09, with an intraday high of $153.20 and low of $139.36, within a 52-week range of $444.65 to $139.36 [2] Apple Inc. - Apple shares ended 5.00% lower at $261.73, trading between an intraday high of $275.72 and a low of $260.18, against a 52-week high of $288.61 and a low of $169.21 [2] - The decline contributed to a $500 billion loss across major tech companies due to concerns over memory shortages and shrinking margins at peers like Cisco, compounded by hardware cost pressures and AI-related disruptions [2] Applied Materials - Applied Materials declined 3.38% to $328.39, with an intraday range of $341.07 high and $325.56 low, sitting between a 52-week peak of $344.60 and a trough of $123.74 [3] - The stock rose 12.75% to $370.25 in after-hours trading after resolving a U.S. export probe with a $252 million settlement over past China shipments, allowing a focus on AI-driven chip tools and collaborations [3] Arista Networks, Inc. - Arista Networks fell 3.94% to $135.12, ranging from $138.50 high to $132.01 low intraday, within 52-week bounds of $164.94 and $59.43 [4] - The stock increased nearly 12.5% to $151.99 in extended trading [4] - For full-year 2025, Arista generated $9 billion in revenue and shipped a cumulative 150 million ports, with AI networking and campus expansion identified as key growth drivers [4] Rivian Automotive, Inc. - Rivian stock dropped 5.15% to $14.00, hitting an intraday high of $14.83 and low of $13.94, against a 52-week high of $22.69 and low of $10.36, but rose over 14% to $16.03 in after-hours trading [5] - Rivian reported fourth-quarter revenue of $1.29 billion, down from $1.73 billion a year earlier but slightly ahead of the $1.27 billion Street estimate [6] - Automotive revenue totaled $839 million, falling 45% year-over-year due to lower regulatory credit sales, fewer vehicle deliveries, and a lower average selling price, while software and services revenue surged 109% to $447 million [6] - The company posted a narrower-than-expected loss of 54 cents per share, beating estimates for a 68-cent loss, and generated $120 million in consolidated gross profit during the quarter [7] - Full-year revenue rose 8% to $5.39 billion, with CEO RJ Scaringe emphasizing 2025 as a year focused on execution and scaling the business [8]

分组1 - Arista Networks reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, and up from $0.65 per share a year ago, representing an earnings surprise of +8.78% [1] - The company achieved revenues of $2.49 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.81%, compared to $1.93 billion in the same quarter last year [2] - Arista Networks has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 7.4% since the beginning of the year, outperforming the S&P 500, which has gained 1.4% [3] - The future performance of Arista Networks' stock will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.75 on revenues of $2.44 billion, and for the current fiscal year, it is $3.30 on revenues of $10.71 billion [7] 分组3 - The Zacks Industry Rank indicates that the Internet - Software sector is currently in the bottom 44% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Arista Networks (NYSE:ANET) Q4 2025 Earnings call February 12, 2026 04:30 PM ET Company ParticipantsAmit Daryanani - Senior Managing DirectorBen Reitzes - Managing Director, Partner, and Head of Technology ResearchChantelle Breithaupt - CFOJayshree Ullal - Chairperson and CEOKarl Ackerman - Managing Director of Semiconductors and Networking HardwareKenneth Duda - Founder and CTOMeta Marshall - Executive DirectorRudolph Araujo - VP of Investor AdvocacyRyan Koontz - Managing DirectorConference Call Participan ...