Arista Networks: An AI Capex Winner, Shares Ascend To Fair Value (Rating Downgrade)
Arista Networks delivered a blowout Q2, raising guidance and benefiting from strong AI-driven demand, but shares now trade near fair value after a massive rally. I am downgrading ANET from buy to hold, as the stock is up nearly 70% since April and now trades above 40x earnings. Key risks include heavy customer concentration (MSFT, META) and potential margin pressure from increased competition or softer AI capex.
Arista Networks: Blowout Earnings, I'm Upgrading To A Buy
Upgrading Arista Networks to a buy as hyperscale cloud capex creates a once-in-a-generation growth opportunity, despite a high valuation. Q2 earnings were exceptional: Arista beat on all metrics and raised FY25 revenue growth guidance from 17% to 25%. Massive, multi-year data center investments by cloud giants like Microsoft, Amazon, Google, and Meta are directly fueling Arista's growth.
Arista Networks jumps 18% as AI, hyperscaler demand drive blowout quarter
Shares of Arista Networks Inc (NYSE:ANET) surged nearly 18% on Wednesday after the cloud networking firm reported quarterly results that handily beat expectations and raised its full-year revenue forecast, bolstered by robust hyperscaler and AI infrastructure demand. Second-quarter revenue rose 30.4% year-over-year to $2.21 billion, topping analysts' average estimate of $2.10 billion, while adjusted earnings per share came in at $0.73, above the $0.65 consensus.
Arista: Difficult To Argue With This Rapid Growth Acceleration (Upgrade)
Arista Networks delivered accelerating revenue and EPS growth in Q2, driven by strong AI datacenter demand, bucking the trend of disappointing tech earnings this season. I'm upgrading Arista to a "Buy", as my previous valuation concerns are outweighed by multi-year AI tailwinds and expanding software-driven TAM. Arista's category leadership, rising gross margins, and consistent revenue acceleration justify its premium valuation despite a high P/E multiple (>40x).
Arista Beats Q2 Earnings Estimates on Healthy Top-Line Growth
ANET tops Q2 estimates as strong demand and innovative products drive record revenues and profit growth.
Arista Networks Q2: A Bigger Surprise Coming
Arista Networks delivered a strong Q2 earnings beat, raising CY25 guidance and signaling more upside ahead, especially with AI networking and enterprise demand accelerating. Management's bullish outlook, improved enterprise segment, and VeloCloud acquisition position Arista for higher-margin growth and further guidance upgrades at Analyst Day. Valuation remains attractive versus peers, with my updated price target of $140 reflecting increased EBITDA growth and margin expansion potential for CY25 and CY26.
Arista Networks Inc (ANET) Q2 2025 Earnings Call Transcript
Arista Networks Inc (NYSE:ANET ) Q2 2025 Earnings Conference Call August 5, 2025 4:30 PM ET Company Participants Chantelle Breithaupt - Senior VP & CFO Jayshree V. Ullal - CEO & Chairperson Rudolph Araujo - Corporate Participant Todd Nightingale - President & COO Conference Call Participants Aaron Christopher Rakers - Wells Fargo Securities, LLC, Research Division Amit Jawaharlaz Daryanani - Evercore ISI Institutional Equities,Research Division Antoine Chkaiban - New Street Research LLP Atif Malik - Citigroup Inc., Research Division George Charles Notter - Wolfe Research, LLC James Edward Fish - Piper Sandler & Co., Research Division Karl Ackerman - BNP Paribas Exane, Research Division Meta A.
Arista: After This Shock Q2, The Rerating Has Just Begun
Arista Networks Inc is poised for a structural rerating, driven by AI infrastructure demand and potential upward guidance for 2026–28. My $130 target price reflects premium valuation justified by superior margins, rapid EPS growth, and deep integration with Meta and Microsoft. Despite high customer concentration risk, Arista's pricing power, cash generation, and supply chain agility provide resilience and upside.
Arista Networks (ANET) Q2 Earnings and Revenues Surpass Estimates
Arista Networks (ANET) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.65 per share. This compares to earnings of $0.52 per share a year ago.
Is ANET Stock a Strong Buy Ahead of Q2 Earnings Release?
ANET eyes another earnings beat as demand for AI-optimized networking and enterprise upgrades fuels momentum.
Arista Networks, Inc. (ANET) Is a Trending Stock: Facts to Know Before Betting on It
Arista Networks (ANET) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Will Arista Networks Stock Keep Soaring as Q2 Earnings Approach?
Arista Networks (ANET) has joined a wave of tech stocks that are receiving upgrades from analysts thanks to its AI-driven data center innovation and robust revenue growth.
