Arista Networks Inc at Raymond James TMT and Consumer Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Simon Leopold - Raymond James - Analyst : So I think one of the interesting aspects is that the company is becoming multidimensional, which is, I think, important. So how do you think about describing the multi-year opportunity in the dimensions that are all appropriate?

Question: Simon Leopold - Raymond James - Analyst : So great. So I think one of the things that characterize your business is the leading customers. And it's understandably a double-edged sword to have high concentration, but they have high concentration with companies that grow and spend a lot of money. How do we see the company's evolution changing that mix. So you've had as much as 40% of revenue from two customers in the past. How do we think about what the concentration and the customer mix might look like several years from now?

Question: Simon Leopold - Raymond James - Analyst : And maybe broadly, how do you see AI playing into the demand side? So currently, there's some more debates about this idea, though, AI is a bubble versus no, it's not a bubble. It's this guy is winning, that guy is winning. What's your take as an industry participant on the overall market and then the supply and demand set up for you?

Question: Simon Leopold - Raymond James - Analyst : So I want to unpack maybe two aspects of this. One is the nature of the customer. So, so much of the spending is done by these hyperscalers, but we hear about sovereigns. We hear about enterprise adoption, Neocloud. So if we think about the market or the business opportunities for Arista, how do you see that evolving? So what's your -- what are your dependencies now? And how do you see that shifting over time towards these more diversified customer bases? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 6:00PM, ANET.N - Arista Networks Inc at Raymond James TMT and Consumer Conference

Question: Simon Leopold - Raymond James - Analyst : I want to follow that one up because --

Question: Simon Leopold - Raymond James - Analyst : This is a topic that when we were picking up the coverage of the semis, we're debating internally as well. So I want this to be open and objective because I haven't made up my mind, so I don't want to give you the impression I've made up my mind because I haven't. There's this ongoing debate about how AI evolves in enterprise and organizations, what they do themselves on-prem versus when will they hire and employ the cloud. And I imagine, to a degree, you don't care because as long as it goes on an Arista box. But I have to imagine, you have an opinion, you've got some thoughts as to how this plays out. I'm curious your take on what happens on-prem or private cloud versus public cloud and AI adoption?

Question: Simon Leopold - Raymond James - Analyst : I also want to explore a little bit about this question about the back end versus front end. So I think you've given us this broad range, right, 30% to 200%. And the way you've offered forecast is you just lump it all together. And I guess part of what I'd like to explore a little bit is when customers are making decisions, are the decisions on back end independent to front end because you've all been in the front end for a long time. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 6:00PM, ANET.N - Arista Networks Inc at Raymond James TMT and Consumer Conference It's the back end that's new? Or is there some direct correlation? Why such a wide range? Why do we lump them together? How should we really think about the logic there? Because early on, we were all focused on measuring just back end.

Question: Simon Leopold - Raymond James - Analyst : Interesting.

Question: Simon Leopold - Raymond James - Analyst : So I want to also talk a little bit about sort of the different decision processes and biases of the market verticals, so hyperscale, sovereigns, Neos. So at least two dimensions I want to see if you can unpack -- it's a little bit of a long question in that we've heard the hyperscalers in this concept of blue box, help us understand what that means, the implications. The one around sovereigns that I want to explore is recently, several compute suppliers, GPU platform supplier have talked about the sovereigns being much slower than others because they're governments, they're bureaucratic. Wondering if that's been your experience, if that affects networking in the same way it affects the compute side of the house. And then enterprises, the question is along the line of where are they getting the money?

Question: Simon Leopold - Raymond James - Analyst : And how have you incorporated that into your guidance? So when you've given us the forecast for the year, did you initially account for sovereigns taking longer? Or is there any delta or shift? Because the reason I'm asking that is it's relatively new to me being an outside observer, hearing this point, which is logical, but hearing this point compute folks.

Question: Simon Leopold - Raymond James - Analyst : So I want to ask a little bit some technology-oriented questions. So one of the interesting opportunities that sounds like it's a couple of years out is moving the architectures and switching it to scale up. So, so much of it today, the focus is selling out rack to rack, rack to storage, but scale up looks like it hits new opportunities for companies like Arista. So maybe your thought on that opportunity, a timeline of TAM. How should analysts think about that in their multiyear time horizon?

Question: Simon Leopold - Raymond James - Analyst : Yeah. I was just going to check and make sure we -- the Ethernet was the protocol of choice.

Question: Simon Leopold - Raymond James - Analyst : So I want to make sure we hit on the enterprise campus opportunity because your forecast suggests phenomenal growth off a small base, but it's a fairly large established industry, campus switching. How -- what sort of strategy? What's the time line? Is it sort of, hey, we're Arista and we're here and that's sufficient? What's the -- what gets you that kind of growth?

Question: Simon Leopold - Raymond James - Analyst : So I sort of feel like I heard a slightly different message and it could be that I just missed it admittedly. But in the past, when we've done our channel checks, we typically hear channel partners say, yeah, we see Arista, but they're channel unfriendly. And so it sounds like that's a change for you to become more channel-friendly. How far along is this? Is this something that's been ongoing and I missed it? Or is this a more recent exercise in terms of your strategy?

Question: Simon Leopold - Raymond James - Analyst : I didn't mean to offend you --

Question: Simon Leopold - Raymond James - Analyst : And what percentage or campus first? How do you characterize that? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 6:00PM, ANET.N - Arista Networks Inc at Raymond James TMT and Consumer Conference

Question: Simon Leopold - Raymond James - Analyst : Time flies, and we're having fun. Our times just about up. So I always like to close with the following, which is what do you feel is either the least appreciated or most misunderstood aspect of the Arista story?

Question: Simon Leopold - Raymond James - Analyst : Folks, thanks for joining us. Folks, thanks a lot. We'll have a break of session.