Arista Networks shares surged 10% in extended trading after the networking equipment maker reported fourth-quarter earnings that topped Wall Street expectations. The company posted adjusted earnings of $0.82 per share, beating analysts' estimates of $0.76, while revenue reached $2.49 billion, surpassing the $2.38 billion consensus.

Revenue rose 28.9% year over year and 7.8% sequentially, driven by sustained demand for client-to-cloud networking across AI, data center, campus and routing environments. Arista's full-year revenue hit $9 billion, with CEO Jayshree Ullal highlighting 2025 as a validation year for the company's "Arista 2.0" strategy, which has now shipped 150 million cumulative ports. The company also reported strong profitability, with GAAP net income climbing to $955.8 million.

For the first quarter of fiscal 2026, Arista forecast revenue of about $2.6 billion, above analysts' expectations of $2.46 billion, while guiding for non-GAAP gross margins of 62-63% and operating margins around 46%. CFO Chantelle Breithaupt noted the company paired nearly 29% revenue growth with a 47.5% non-GAAP operating margin, surpassing $1 billion in quarterly net income for the first time.