Arista Networks (NYSE:ANET) Trading 4.7% Higher Following Strong Earnings

Shares of Arista Networks, Inc. (NYSE:ANET) traded up 4.7% during trading on Friday following a better than expected earnings announcement. The stock traded as high as $148.77 and last traded at $141.4550. 21,796,126 shares traded hands during trading, an increase of 141% from the average session volume of 9,053,586 shares. The stock had previously closed at $135.12.

The technology company reported $0.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.75 by $0.07. The company had revenue of $2.49 billion during the quarter, compared to the consensus estimate of $2.38 billion. Arista Networks had a net margin of 38.99% and a return on equity of 31.34%. The firm’s quarterly revenue was up 28.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.66 earnings per share.

Trending Headlines about Arista Networks

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.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Weiss Ratings restated a “hold (c+)” rating on shares of Arista Networks in a research note on Monday, December 29th. Piper Sandler reaffirmed an “overweight” rating and issued a $175.00 target price (up from $159.00) 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 report on Friday. Rosenblatt Securities boosted their price target on Arista Networks from $140.00 to $165.00 and gave the company a “neutral” rating in a research report on Tuesday, February 10th. Finally, Barclays reaffirmed an “overweight” rating and set a $184.00 price objective (up from $183.00) on shares of Arista Networks in a research report on Friday. Eighteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Arista Networks currently has an average rating of “Moderate Buy” and an average price target of $175.41.

Insider Activity at Arista Networks

In related news, CEO Jayshree Ullal sold 24,042 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $124.55, for a total value of $2,994,431.10. Following the sale, the chief executive officer owned 9,917 shares in the company, valued at $1,235,162.35. This represents a 70.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Charles H. Giancarlo sold 8,000 shares of the firm’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $140.43, for a total value of $1,123,440.00. Following the completion of the transaction, the director owned 9,784 shares of the company’s stock, valued at approximately $1,373,967.12. This represents a 44.98% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 216,464 shares of company stock valued at $27,553,548 over the last 90 days. Company insiders own 3.39% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Brighton Jones LLC grew its stake in Arista Networks by 321.7% in the 4th quarter. Brighton Jones LLC now owns 7,806 shares of the technology company’s stock worth $863,000 after acquiring an additional 5,955 shares during the period. Revolve Wealth Partners LLC purchased a new position in shares of Arista Networks in the 4th quarter worth $202,000. Bison Wealth LLC purchased a new position in shares of Arista Networks in the 4th quarter worth about $251,000. Sivia Capital Partners LLC lifted its position in Arista Networks by 48.4% during the second quarter. Sivia Capital Partners LLC now owns 10,723 shares of the technology company’s stock valued at $1,097,000 after buying an additional 3,496 shares in the last quarter. Finally, Harbour Investments Inc. lifted its holdings in shares of Arista Networks by 11.1% during the 2nd quarter. Harbour Investments Inc. now owns 1,804 shares of the technology company’s stock valued at $185,000 after acquiring an additional 180 shares in the last quarter. 82.47% of the stock is owned by hedge funds and other institutional investors.

Arista Networks Stock Up 4.7%

The company has a market cap of $178.13 billion, a price-to-earnings ratio of 51.25, a PEG ratio of 2.39 and a beta of 1.42. The stock has a 50 day simple moving average of $133.05 and a 200 day simple moving average of $137.00.

About Arista Networks

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.