Arista Networks, Inc.

Software and services represented roughly 17% of FY2025 revenue ($9.0B total), providing EOS subscription and support contract visibility, while cloud titan capital expenditure programs offer multi-quarter planning horizons. The majority of revenue remains hardware ordered against CapEx budgets rather than multi-year contractual commitments.

Core networking products (AI, cloud, and data center switching) represent roughly 65% of FY2025 product revenue, with cognitive adjacencies including campus and routing at 18% and software and services at 17%. Campus expansion and the VeloCloud SD-WAN acquisition are broadening the portfolio, but data center switching remains the dominant revenue driver.

The Americas accounted for 79.1% of FY2025 revenue, with EMEA at 11.9% and APAC at 9.0%. The North American concentration reflects the U.S.-centric hyperscaler customer base and limits geographic resilience to any single-market demand slowdown.

Non-GAAP operating margin held above 46% across FY2023-FY2025, reflecting strong incremental economics as EOS software scales across a growing installed base without proportional cost growth. FY2026 guidance projects a step-down to roughly 46% as cloud titan mix increases and those customers extract larger volume discounts, establishing a near-term ceiling.

Arista's networking infrastructure is mission-critical for cloud and enterprise data center operations, creating repeat purchase relationships and multi-year hardware refresh cycles that add durability beyond a pure transactional model. The software and services component (~17% of FY2025 revenue) provides contractual recurring income, though the majority of revenue is hardware tied to CapEx cycles.