Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Arista Networks Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Product	7,576,900)	5,884,021)	5,029,493)	3,716,079)	2,377,727)
Service	1,428,800)	1,119,125)	830,675)	665,231)	570,310)
Revenue	9,005,700)	7,003,146)	5,860,168)	4,381,310)	2,948,037)
Product	(2,978,700)	(2,299,063)	(2,061,167)	(1,573,629)	(958,363)
Service	(258,300)	(212,780)	(168,720)	(131,985)	(108,895)
Cost of revenue	(3,237,000)	(2,511,843)	(2,229,887)	(1,705,614)	(1,067,258)
Gross profit	5,768,700)	4,491,303)	3,630,281)	2,675,696)	1,880,779)
Research and development	(1,237,300)	(996,717)	(854,918)	(728,394)	(586,752)
Sales and marketing	(533,400)	(427,264)	(399,034)	(326,955)	(286,171)
General and administrative	(141,900)	(122,706)	(119,080)	(93,241)	(83,117)
Operating expenses	(1,912,600)	(1,546,687)	(1,373,032)	(1,148,590)	(956,040)
Income from operations	3,856,100)	2,944,616)	2,257,249)	1,527,106)	924,739)
Interest income	383,400)	310,998)	152,421)	27,556)	7,215)
Other income (expense)	10,200)	9,420)	12,356)	27,134)	(1,075)
Other income, net	393,600)	320,418)	164,777)	54,690)	6,140)
Income before income taxes	4,249,700)	3,265,034)	2,422,026)	1,581,796)	930,879)
Provision for income taxes	(738,300)	(412,980)	(334,705)	(229,350)	(90,025)
Net income	3,511,400)	2,852,054)	2,087,321)	1,352,446)	840,854)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The financial performance presented demonstrates a consistent pattern of growth across all key income statement items from 2021 through 2025. Revenue, gross profit, income from operations, and net income all exhibit increasing trends over the five-year period. While costs and expenses also increase, the rate of revenue growth generally outpaces these increases, resulting in improved profitability.

Revenue Analysis: Total revenue increased significantly from US$2,948,037 thousand in 2021 to US$9,005,700 thousand in 2025, representing a substantial compound annual growth rate. Both product and service revenue contribute to this growth, with product revenue consistently representing the larger portion. Service revenue demonstrates a faster growth rate than product revenue, although from a smaller base.
Profitability Analysis: Gross profit follows the revenue trend, increasing from US$1,880,779 thousand in 2021 to US$5,768,700 thousand in 2025. The cost of revenue also increases, but at a slower rate than revenue, leading to improved gross margins. Income from operations shows a similar positive trend, rising from US$924,739 thousand to US$3,856,100 thousand. Net income mirrors this pattern, growing from US$840,854 thousand to US$3,511,400 thousand.
Expense Analysis: Operating expenses, encompassing research and development, sales and marketing, and general and administrative expenses, all increase year over year. However, the growth in operating expenses is generally less pronounced than the growth in revenue, indicating increasing operating leverage. Research and development expenses exhibit the largest absolute increase over the period.
Non-Operating Items: Interest income demonstrates a significant increase over the period, rising from US$7,215 thousand in 2021 to US$383,400 thousand in 2025. Other income, net, also shows a substantial increase, though from a smaller base. These non-operating items contribute positively to income before income taxes.
Tax Impact: The provision for income taxes increases alongside net income, reflecting higher taxable income. The effective tax rate appears to fluctuate, increasing from approximately 10.7% in 2021 to approximately 25.9% in 2025, suggesting a changing tax landscape or income mix.

Overall, the financial statements indicate a period of strong and sustained growth, coupled with improving profitability and increasing operational efficiency. The increasing trend in non-operating income further enhances the company’s financial performance.

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Arista Networks Inc. (NYSE:ANET)

Income Statement