New York, Feb 17, 2026, 11:23 a.m. ET — Regular session
- Arista Networks shares up 0.3% at $142.05 in late morning trade
- Annual filing shows about $818 million left under $1.5 billion buyback program
- Two customers made up 42% of 2025 revenue; investors eye next management update on Feb. 25
Arista Networks shares rose 0.3% to $142.05 on Tuesday, valuing the networking gear maker at about $183.1 billion, even as tech lagged in a softer Nasdaq-tracking fund. Cisco Systems, one of Arista’s closest listed rivals, was little changed.
Arista’s annual report, known as a Form 10-K, showed it had about $817.9 million still authorized under a $1.5 billion stock repurchase program as of Dec. 31. The filing said two customers accounted for 26% and 16% of 2025 revenue, a reminder that a shift in a handful of big orders can swing results. It also put deferred revenue and other “remaining performance obligations” — booked work not yet counted as sales — at $6.1 billion, with about 90% expected over the next two years, and noted reliance on Broadcom for switching chips. (SEC)
The details matter because Arista sits close to the heart of data center build-outs, where spending has been choppy but still heavy as companies expand AI computing. Days ago, Arista projected first-quarter revenue of about $2.6 billion, with a non-GAAP gross margin of 62%-63%, and CEO Jayshree Ullal told investors 2025 was “the year of validation” for the company’s momentum. CFO Chantelle Breithaupt said the quarter showed “strong operating leverage.” (Arista)
Tuesday’s price action was muted compared with last week’s post-earnings swing, but it kept the focus on how much growth is already priced in. Arista’s shares trade at a rich multiple by market standards, and the stock has tended to react hard to any hint that AI-linked demand is flattening.
Buybacks are also part of the story. Arista does not pay a dividend, and that leaves repurchases as the main lever for returning cash — useful in steady quarters, less helpful if revenue turns lumpy or margins narrow.
Customer concentration cuts both ways. Big cloud wins can lift Arista fast, but procurement timing, deployment delays, or a push toward cheaper gear can show up quickly in quarterly numbers, especially when a couple of customers make up such a large slice of sales.
The filing also leans into a familiar risk list for hardware firms: supply constraints, geopolitics and shifting trade rules, plus exposure to key suppliers for chips and other components. Those pressures can squeeze margins if Arista cannot pass costs on, and they can slow shipments if parts get tight.
Competition stays close, with Cisco still the obvious reference point for many investors looking at enterprise and data center networking. Arista has leaned on speed upgrades and the AI cluster buildout to differentiate, but price pressure is always a live issue when customers order at scale.
Another near-term marker is the company’s annual-meeting season work. The 10-K said Arista expects to file its proxy statement within 120 days of year-end, a window that can bring refreshed governance and compensation detail even if it rarely moves the stock by itself.
The next scheduled catalyst is management’s next public stop. Arista said Senior Vice President John McCool is set to speak at Bernstein’s “What’s next in Tech” event on Feb. 25, followed by a Morgan Stanley TMT conference session on March 3 featuring CEO Ullal and CTO Ken Duda — forums where investors will listen for any change in tone on AI data-center demand, customer mix and margins. (Arista)
