Arista Networks (NYSE:ANET) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Arista Networks (NYSE:ANET) issued its quarterly earnings results on Thursday. The technology company reported $0.82 EPS for the quarter, topping analysts’ consensus estimates of $0.75 by $0.07, FiscalAI reports. The firm had revenue of $2.49 billion for the quarter, compared to analysts’ expectations of $2.38 billion. Arista Networks had a return on equity of 31.34% and a net margin of 38.99%.The business’s revenue for the quarter was up 28.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.66 EPS.

Here are the key takeaways from Arista Networks’ conference call:

• Raised 2026 outlook: Management increased FY‑2026 revenue guidance to approximately $11.25B (25% growth) and lifted the AI networking target to $3.25B, while guiding an operating margin around 46%, signaling strong expected AI-driven demand.
• Record 2025 results: Fiscal 2025 revenue hit a record $9B with 28.6% growth, non‑GAAP gross margin ~64.6% and operating margin ~48.2%, and Q4 net income exceeded $1B, underscoring profitable scale.
• Supply and cost pressures: Management warned of worsening memory and silicon constraints and much higher memory prices, driving purchase commitments to $6.8B and creating pressure on margins and shipment timing, with potential SKU price increases expected.
• Concentration and timing risk: Two customers accounted for 16% and 26% of revenue in 2025 and product deferred revenue rose to $5.4B, which management says can create lumpiness and uncertainty in revenue recognition timing.

Arista Networks Price Performance

Shares of ANET stock traded up $6.34 on Friday, hitting $141.46. 21,811,899 shares of the stock traded hands, compared to its average volume of 8,425,963. Arista Networks has a 52 week low of $59.43 and a 52 week high of $164.94. The firm has a 50 day simple moving average of $133.05 and a two-hundred day simple moving average of $136.87. The firm has a market cap of $178.13 billion, a price-to-earnings ratio of 51.25, a PEG ratio of 2.28 and a beta of 1.42.

Analyst Ratings Changes

ANET has been the subject of a number of recent analyst reports. Weiss Ratings restated a “hold (c+)” rating on shares of Arista Networks in a report on Monday, December 29th. KeyCorp reiterated an “overweight” rating and issued a $178.00 price objective (up from $170.00) on shares of Arista Networks in a report on Friday. Wells Fargo & Company raised their price target on Arista Networks from $175.00 to $185.00 and gave the stock an “overweight” rating in a research note on Friday. The Goldman Sachs Group reiterated a “buy” rating and issued a $188.00 price objective (up previously from $165.00) on shares of Arista Networks in a research note on Friday. Finally, Rosenblatt Securities lifted their price target on shares of Arista Networks from $140.00 to $165.00 and gave the stock a “neutral” rating in a research note on Tuesday. Eighteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $175.41.

Key Arista Networks News

Here are the key news stories impacting Arista Networks this week:

• Positive Sentiment: Reported stronger-than-expected Q4 results: EPS $0.82 vs. $0.75 est., revenue $2.49B (+28.9% YoY) and record net income; company raised AI revenue targets and issued revenue guidance above Street estimates, supporting the AI-driven growth narrative. Read More.
• Positive Sentiment: Analysts are lifting price targets and turning more bullish (Wells Fargo, Needham, Rosenblatt among those raising targets/ratings), giving additional analyst-driven momentum to the stock. Read More.
• Positive Sentiment: Market views Arista as outperforming peers (notably Cisco) by managing supply-chain pressures and capturing hyperscaler AI capex, which supports margin resilience and share gains. Read More.
• Neutral Sentiment: Management said Arista is diversifying accelerator support: deployments that were ~99% Nvidia a year ago now include ~20–25% AMD — a strategic shift that increases customer options but alters vendor dynamics. Traders note this may be weighing on GPU vendor stocks while benefiting Arista’s flexibility. Read More.
• Neutral Sentiment: Unusually high options activity is signaling elevated trader interest/positioning ahead of and after earnings. Read More.
• Negative Sentiment: Valuation is rich (ANET trades at a high P/E), and some commentary asks whether the recent run (one-year gains) leaves less margin for error if growth slows. This could temper longer-term upside. Read More.
• Negative Sentiment: Rising component/memory costs are a sector-wide headwind; management says it’s mitigating impacts via purchase commitments, but cost pressure remains a watch item for margins. Read More.

Insiders Place Their Bets

In other news, Director Charles H. Giancarlo sold 8,000 shares of the business’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $140.43, for a total value of $1,123,440.00. Following the transaction, the director directly owned 9,784 shares in the company, valued at $1,373,967.12. The trade was a 44.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Kelly Bodnar Battles sold 422 shares of the stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $117.15, for a total value of $49,437.30. Following the sale, the director owned 8,980 shares of the company’s stock, valued at $1,052,007. This represents a 4.49% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 216,464 shares of company stock worth $27,553,548. 3.39% of the stock is currently owned by corporate insiders.

Institutional Trading of Arista Networks

Several hedge funds have recently modified their holdings of the company. Bridgewater Associates LP increased its position in Arista Networks by 95.4% in the fourth quarter. Bridgewater Associates LP now owns 1,329,442 shares of the technology company’s stock worth $174,197,000 after purchasing an additional 649,076 shares during the last quarter. Worldquant Millennium Advisors LLC increased its holdings in shares of Arista Networks by 28.7% in the 2nd quarter. Worldquant Millennium Advisors LLC now owns 2,673,388 shares of the technology company’s stock worth $273,514,000 after buying an additional 596,895 shares during the last quarter. Disciplined Growth Investors Inc. MN increased its holdings in shares of Arista Networks by 25.7% in the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 2,031,563 shares of the technology company’s stock worth $207,849,000 after buying an additional 415,102 shares during the last quarter. Pinebridge Investments LLC bought a new position in shares of Arista Networks in the 4th quarter valued at about $42,686,000. Finally, Polar Capital Holdings Plc grew its position in Arista Networks by 30.3% in the third quarter. Polar Capital Holdings Plc now owns 1,317,210 shares of the technology company’s stock worth $191,931,000 after acquiring an additional 305,983 shares in the last quarter. 82.47% of the stock is owned by hedge funds and other institutional investors.

Arista Networks Company Profile

Arista Networks, Inc is a technology company that designs and sells cloud networking solutions for large-scale data centers and enterprise environments. The company is best known for its high-performance switching and routing platforms, which are used to build scalable, low-latency networks for cloud service providers, internet companies, financial services, telecommunications, and enterprise IT. Arista’s offerings emphasize programmability, automation and telemetry to support modern, software-driven network architectures.

Central to Arista’s product portfolio is its Extensible Operating System (EOS), a modular network operating system that provides consistent programmability, stateful control and advanced visibility across the company’s hardware platforms.