Arista Networks, Inc.ANET

Arista Networks, Inc. Earnings Per Share Disclosure

10-KFiled Feb 17, 20261 min read
Net Income Per Share
Basic net income per share is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares of common stock outstanding during the period, including potential common shares assuming the dilutive effect of outstanding stock options, restricted stock units, and the employee stock purchase plan using the treasury stock method. Potential common shares whose effect would have been antidilutive are excluded from the computation of diluted net income per share. The following table sets forth the computation of our basic and diluted net income per share attributable to common stockholders, as adjusted to give effect to the Stock Split (in millions, except per share amounts):
Year Ended December 31,
202520242023
Net income $3,511.4 $2,852.1 $2,087.3 
Basic weighted-average shares outstanding1,258.0 1,256.3 1,237.4 
Add weighted-average effects of dilutive securities:
Employee equity awards17.7 24.8 31.1 
Diluted weighted-average shares outstanding1,275.7 1,281.1 1,268.5 
Net income per share:
Basic $2.79 $2.27 $1.69 
Diluted $2.75 $2.23 $1.65 
The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders because their effects would have been anti-dilutive for the periods presented, as adjusted to give effect to the Stock Split (in millions):
Year Ended December 31,
202520242023
Employee equity awards1.2 0.3 1.0 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 19, 2025
2021Feb 15, 2022
2017Feb 20, 2018

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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