Net Profit Margin
since 2014
Calculation
Arista Networks Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 38.99% | = | 100 | × | 3,511,400) | ÷ | 9,005,700) |
| Dec 31, 2024 | 40.73% | = | 100 | × | 2,852,054) | ÷ | 7,003,146) |
| Dec 31, 2023 | 35.62% | = | 100 | × | 2,087,321) | ÷ | 5,860,168) |
| Dec 31, 2022 | 30.87% | = | 100 | × | 1,352,446) | ÷ | 4,381,310) |
| Dec 31, 2021 | 28.52% | = | 100 | × | 840,854) | ÷ | 2,948,037) |
| Dec 31, 2020 | 27.38% | = | 100 | × | 634,557) | ÷ | 2,317,512) |
| Dec 31, 2019 | 35.67% | = | 100 | × | 859,867) | ÷ | 2,410,706) |
| Dec 31, 2018 | 15.25% | = | 100 | × | 328,115) | ÷ | 2,151,369) |
| Dec 31, 2017 | 25.71% | = | 100 | × | 423,201) | ÷ | 1,646,186) |
| Dec 31, 2016 | 16.31% | = | 100 | × | 184,189) | ÷ | 1,129,167) |
| Dec 31, 2015 | 14.46% | = | 100 | × | 121,102) | ÷ | 837,591) |
| Dec 31, 2014 | 14.87% | = | 100 | × | 86,850) | ÷ | 584,106) |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 US$ in thousands
The net profit margin exhibited considerable fluctuation between 2014 and 2025. Initially, the margin remained relatively stable, followed by a period of significant growth, and then a leveling off with continued increases. A detailed examination reveals distinct phases in its performance.
- Initial Stability (2014-2015)
- From 2014 to 2015, the net profit margin experienced a slight decrease, moving from 14.87% to 14.46%. This suggests a modest impact from cost of goods sold or operating expenses relative to revenue during this period, but the change was minimal.
- Early Growth (2015-2017)
- The period between 2015 and 2017 witnessed a substantial increase in the net profit margin. It rose from 14.46% in 2015 to a peak of 25.71% in 2017. This indicates improved operational efficiency, potentially stemming from economies of scale, better cost management, or a shift towards higher-margin products or services.
- Fluctuation and Subsequent Growth (2017-2019)
- Following the peak in 2017, the net profit margin decreased to 15.25% in 2018 before experiencing a dramatic surge to 35.67% in 2019. This large increase suggests a significant positive change in the company’s profitability, possibly due to a one-time gain or a substantial improvement in core business operations.
- Continued Strong Performance (2019-2025)
- From 2019 through 2025, the net profit margin remained consistently high, ranging between 27.38% and 40.73%. It generally trended upward, reaching 40.73% in 2024 before slightly decreasing to 38.99% in 2025. This sustained high profitability demonstrates a strong ability to convert revenue into profit, indicating effective cost control and pricing strategies. The slight decrease in 2025 warrants further investigation to determine if it represents a temporary fluctuation or the beginning of a new trend.
Overall, the net profit margin demonstrates a positive trajectory over the analyzed period, particularly after 2015. The company has shown a consistent ability to improve its profitability, culminating in a strong and stable margin in recent years. The fluctuations observed, particularly in 2018 and 2019, suggest the influence of specific events or strategic decisions on the company’s financial performance.
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Comparison to Competitors
Arista Networks Inc., net profit margin, long-term trends, comparison to competitors
| Arista Networks Inc. | Apple Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2025 | 38.99% | 26.92% | 17.97% | 4.81% | 4.77% |
| Dec 31, 2024 | 40.73% | 23.97% | 19.18% | 3.63% | 7.69% |
| Dec 31, 2023 | 35.62% | 25.31% | 22.13% | 2.39% | 8.98% |
| Dec 31, 2022 | 30.87% | 25.31% | 22.91% | 5.50% | 5.49% |
| Dec 31, 2021 | 28.52% | 25.88% | 21.26% | 3.45% | 3.14% |
| Dec 31, 2020 | 27.38% | 20.91% | 22.75% | 5.01% | 2.52% |
| Dec 31, 2019 | 35.67% | 21.24% | 22.39% | -2.55% | 2.05% |
| Dec 31, 2018 | 15.25% | 22.41% | 0.22% | — | 1.37% |
| Dec 31, 2017 | 25.71% | 21.09% | 20.02% | — | 2.69% |
| Dec 31, 2016 | 16.31% | 21.19% | 21.81% | — | 3.25% |
| Dec 31, 2015 | 14.46% | 22.85% | 18.27% | — | 5.12% |
| Dec 31, 2014 | 14.87% | 21.61% | 16.66% | — | 3.69% |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
Comparison to Sector (Technology Hardware & Equipment)
Arista Networks Inc., net profit margin, long-term trends, comparison to sector (technology hardware & equipment)
| Arista Networks Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Dec 31, 2025 | 38.99% | 21.91% |
| Dec 31, 2024 | 40.73% | 20.04% |
| Dec 31, 2023 | 35.62% | 20.66% |
| Dec 31, 2022 | 30.87% | 21.34% |
| Dec 31, 2021 | 28.52% | 21.20% |
| Dec 31, 2020 | 27.38% | 17.54% |
| Dec 31, 2019 | 35.67% | 16.03% |
| Dec 31, 2018 | 15.25% | 18.73% |
| Dec 31, 2017 | 25.71% | 20.77% |
| Dec 31, 2016 | 16.31% | 21.13% |
| Dec 31, 2015 | 14.46% | 21.91% |
| Dec 31, 2014 | 14.87% | 20.48% |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
Comparison to Industry (Information Technology)
Arista Networks Inc., net profit margin, long-term trends, comparison to industry (information technology)
| Arista Networks Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2025 | 38.99% | 25.77% |
| Dec 31, 2024 | 40.73% | 20.64% |
| Dec 31, 2023 | 35.62% | 20.33% |
| Dec 31, 2022 | 30.87% | 22.35% |
| Dec 31, 2021 | 28.52% | 23.54% |
| Dec 31, 2020 | 27.38% | 19.65% |
| Dec 31, 2019 | 35.67% | 19.85% |
| Dec 31, 2018 | 15.25% | 18.58% |
| Dec 31, 2017 | 25.71% | 17.86% |
| Dec 31, 2016 | 16.31% | 17.79% |
| Dec 31, 2015 | 14.46% | 18.38% |
| Dec 31, 2014 | 14.87% | 19.38% |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).