/Arista%20Networks%20Inc%20logo%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
Santa Clara, California-based Arista Networks, Inc. (ANET) engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments. With a market cap of approximately $108.7 billion, Arista’s operations span across the Americas, Europe, and Indo Pacific.
The company has notably outperformed the broader market over the past year, but underperformed in 2025. ANET stock has soared 17.6% over the past 52 weeks and plunged 16.5% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 11.9% gains over the past year and a marginal 64 bps dip in 2025.
Narrowing the focus, Arista has notably underperformed the industry-focused Pacer Data and Digital Revolution ETF’s (TRFK) 22.6% surge over the past year and marginal 54 bps decline in 2025.
Despite delivering better-than-expected financials, Arista Networks’ stock prices dropped 4.8% in the trading session after the release of its Q1 results on May 6. The company has continued to observe solid momentum and surpassed $2 billion in revenues for the first time in Q1. Its overall topline for the quarter surged 27.6% year-over-year to slightly more than $2 billion, surpassing the Street’s expectations by 2.3%. Meanwhile, its non-GAAP net income soared 29.6% year-over-year to $826.2 million, exceeding analysts’ projections.
However, in Q2, Arista expects its non-GAAP gross margin to come in at 63%, down from 64.1% in Q1, and its non-GAAP operating margin to come in at 46%, down from 47.8% in Q1, which unsettled investor confidence.
For the full fiscal 2025, ending in December, analysts expect ANET to deliver an 11.7% year-over-year surge in adjusted EPS to $2.30. Moreover, the company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
The stock holds a consensus “Moderate Buy” rating overall. Of the 21 analysts covering the stock, opinions include 13 “Strong Buys,” two “Moderate Buys,” and six “Holds.”
This configuration is slightly more bullish than a month ago, when one analyst gave a “Strong Sell” recommendation.
On May 8, Barclays (BCS) analyst Tim Long maintained an “Overweight” rating on ANET, but lowered the price target from $126 to $119.
As of writing, ANET’s mean price target of $109.49 represents an 18.6% premium to current price levels, while its street-high target of $130 suggests a 40.8% upside potential.
