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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 $174.9 billion, Arista’s operations span across the Americas, Europe, and Indo-Pacific.
The company has notably outperformed the broader market over the past year. ANET stock has soared 64% over the past 52 weeks and 24.5% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 19.3% gains over the past year and 8.4% returns in 2025.
Narrowing the focus, Arista has outperformed the industry-focused Pacer Data and Digital Revolution ETF’s (TRFK) 50.3% surge over the past year and 22.1% gains in 2025.
Arista Networks’ stock prices shot up 17.5% in a single trading session following the release of its impressive Q2 results on Aug. 5. The company has continued to benefit from its positioning in the data-driven AI networking boom. Its revenues for the quarter came in at $2.2 billion, up 30.4% year-over-year and 10% sequentially. This figure beat the Street’s expectations by 4.3%. Moreover, the company has also observed a notable expansion in gross margins, leading to a solid growth in earnings.
Arista’s adjusted net income for the quarter soared 37.3% year-over-year to $923.5 million, and its adjusted EPS of $0.73 surpassed the consensus estimates by 11.7%, boosting investor confidence.
For the full fiscal 2025, ending in December, analysts expect ANET to report an adjusted EPS of $2.41, up 17% year-over-year. Further, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line projections in each of the past four quarters.
The stock has a consensus “Strong Buy” rating overall. Of the 23 analysts covering the stock, opinions include 16 “Strong Buys,” two “Moderate Buys,” and five “Holds.”
This configuration is slightly more optimistic than a month ago, when 15 analysts gave “Strong Buy” recommendations and the stock had a consensus “Moderate Buy” rating overall.
On Aug. 7, Barclays (BCS) analyst Tim Long reiterated an “Overweight” rating on ANET and raised the price target from $119 to $151.
As of writing, ANET’s mean price target of $138.10 represents a marginal 33 bps premium to current price levels. Meanwhile, its street-high target of $160 suggests a 16.2% upside potential.
