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Andrew Hill Investment Advisors Inc. boosted its stake in shares of Arista Networks, Inc. (NYSE:ANET – Free Report) by 110.1% during the third quarter, according to its most recent disclosure with the SEC. The institutional investor owned 27,350 shares of the technology company’s stock after purchasing an additional 14,334 shares during the period. Arista Networks comprises approximately 4.5% of Andrew Hill Investment Advisors Inc.’s holdings, making the stock its 8th largest position. Andrew Hill Investment Advisors Inc.’s holdings in Arista Networks were worth $5,568,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in the stock. Cura Wealth Advisors LLC boosted its stake in shares of Arista Networks by 3.1% during the 2nd quarter. Cura Wealth Advisors LLC now owns 1,748 shares of the technology company’s stock valued at $297,000 after buying an additional 52 shares during the period. Affinity Capital Advisors LLC grew its holdings in shares of Arista Networks by 1.4% during the 3rd quarter. Affinity Capital Advisors LLC now owns 3,770 shares of the technology company’s stock valued at $817,000 after acquiring an additional 53 shares in the last quarter. Madison Wealth Partners Inc increased its stake in shares of Arista Networks by 2.8% in the second quarter. Madison Wealth Partners Inc now owns 2,179 shares of the technology company’s stock worth $370,000 after acquiring an additional 60 shares during the last quarter. Intrua Financial LLC increased its stake in shares of Arista Networks by 2.7% in the first quarter. Intrua Financial LLC now owns 2,307 shares of the technology company’s stock worth $283,000 after acquiring an additional 61 shares during the last quarter. Finally, Retirement Planning Group LLC raised its holdings in shares of Arista Networks by 1.1% during the third quarter. Retirement Planning Group LLC now owns 5,705 shares of the technology company’s stock worth $1,161,000 after acquiring an additional 64 shares in the last quarter. Institutional investors and hedge funds own 82.47% of the company’s stock.

Arista Networks Price Performance NYSE ANET opened at $172.34 on Friday. Arista Networks, Inc. has a fifty-two week low of $114.52 and a fifty-two week high of $217.41. The stock’s 50-day moving average is $196.27 and its two-hundred day moving average is $176.26. The firm has a market cap of $217.36 billion, a P/E ratio of 54.37, a price-to-earnings-growth ratio of 1.99 and a beta of 1.60.

Arista Networks (NYSE:ANET – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.13. The company had revenue of $3.04 billion during the quarter, compared to the consensus estimate of $2.83 billion. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%. The firm’s revenue was up 37.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.73 EPS. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, equities analysts expect that Arista Networks, Inc. will post 3.79 EPS for the current year. Insider Buying and Selling In other news, insider Kenneth Duda sold 17,333 shares of Arista Networks stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $180.91, for a total value of $3,135,713.03. Following the transaction, the insider owned 12,976 shares of the company’s stock, valued at $2,347,488.16. This trade represents a 57.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Chantelle Breithaupt sold 1,224 shares of the company’s stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $215.00, for a total transaction of $263,160.00. Following the sale, the chief financial officer directly owned 68,697 shares of the company’s stock, valued at approximately $14,769,855. This represents a 1.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 3,627,449 shares of company stock valued at $741,235,386 in the last quarter. Company insiders own 2.70% of the company’s stock.

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

Positive Sentiment: Higher earnings outlook: Erste Group Bank raised its fiscal 2027 EPS estimate for Arista Networks to $4.79 from $4.74 and maintained a “Buy” rating. The revision reinforces the view that demand for Arista’s networking products should remain strong as cloud providers expand AI data centers. MarketBeat analyst estimate article Positive Sentiment: AI infrastructure remains a key growth theme: Analysts continue to identify Arista as a beneficiary of rising cloud-computing and artificial-intelligence infrastructure spending. The company’s high-speed networking equipment supports major cloud and AI data centers, while recent results showed strong revenue growth and earnings above consensus. Cloud computing stocks article Neutral Sentiment: Analyst comparisons remain favorable but not decisive: Recent articles compare Arista with Salesforce, Adobe and CrowdStrike, highlighting Arista’s industry-leading margins and exposure to AI infrastructure. These are opinion-based investment comparisons rather than new company catalysts. Arista versus Salesforce article Negative Sentiment: AI-fund concerns are driving volatility: Arista shares have pulled back toward prior support levels amid rumors of another AI-focused fund blowup and broader institutional selling. The speculation has not been confirmed, but it is pressuring high-growth technology stocks and increasing near-term risk. Cloud stock pullback article Negative Sentiment: Insider selling adds a modest overhang: Director Kenneth Duda sold a combined 43,333 shares worth approximately $7.8 million under a pre-arranged Rule 10b5-1 plan. Such scheduled sales do not necessarily signal deteriorating fundamentals, but they can weigh on sentiment during a pullback. SEC insider trading filing Negative Sentiment: Valuation and competitive concerns remain: TD Cowen reportedly cut its price target, while a separate bearish analysis questioned Arista’s pricing power and long-term competitive durability. With the stock trading at a premium earnings multiple, investors may be particularly sensitive to any slowdown in AI-related demand. Arista Networks bearish analysis Analysts Set New Price Targets A number of research firms recently issued reports on ANET. BNP Paribas Exane raised Arista Networks to a “strong-buy” rating in a research report on Wednesday, October 14th. Barclays reaffirmed an “overweight” rating and set a $289.00 price target (up from $195.00) on shares of Arista Networks in a research note on Wednesday, August 5th. Sanford C. Bernstein began coverage on Arista Networks in a report on Wednesday, September 30th. They set an “outperform” rating and a $250.00 price target for the company. Jefferies Financial Group set a $250.00 price target on Arista Networks in a research note on Wednesday, August 5th. Finally, Piper Sandler restated an “overweight” rating and issued a $240.00 price objective (up from $181.00) on shares of Arista Networks in a report on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, Arista Networks presently has a consensus rating of “Buy” and an average price target of $233.20.

Check Out Our Latest Stock Report on Arista Networks

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Arista Networks, Inc develops and sells cloud networking solutions for data centers, cloud service providers, enterprises and specialized computing environments. The company’s products are designed to support high-performance, scalable and automated networks used for cloud computing, artificial intelligence, data analytics and other demanding applications.

Arista’s portfolio includes data center and campus switches, routing platforms, wireless networking products, network operating software and network management tools.

Further Reading Five stocks we like better than Arista Networks Spotify Soars After Earnings as the Company Touts AI Benefits and Moderating Costs Lockheed Martin’s Record $292 Billion Backlog Comes With a Delivery Test Palantir’s Next Big Test Isn’t a Partnership—It’s the Numbers Kinder Morgan’s $4.7 Billion Pipeline Bet Could Be Bigger Than Its Earnings Beat Want to see what other hedge funds are holding ANET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arista Networks, Inc. (NYSE:ANET – Free Report).

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Deciding between high-growth infrastructure and steady software giants is a classic investor dilemma. Here is how Arista Networks (ANET +1.47%) and Salesforce (CRM -1.42%) stack up for your 2026 investment strategy.

Arista Networks provides the physical backbone for massive data centers, while Salesforce offers the digital tools businesses use to manage their customers. Both companies are deeply integrated into their respective technology markets, but they offer vastly different ways to play the ongoing digital transformation of the global economy.

The case for Arista NetworksArista Networks designs high-speed networking hardware and software tailored for large-scale data centers and campus environments. Its business strategy centers on the Ethernet market, specifically targeting "Cloud Titans" and specialty providers building out artificial intelligence infrastructure. Because the company historically relied on significant purchases from a small number of large customers, this revenue concentration adds a layer of risk to the business even as it expands. This expansion is particularly visible in the growing market for tech stocks that support AI infrastructure.

In the fiscal year ended Dec. 31, 2025, revenue reached nearly $9.0 billion. This represented a growth rate of approximately 28.6% over the prior fiscal year, driven by strong demand for high-capacity networking ports. The company also maintained strong profitability during this period, reporting net income of close to $3.5 billion. Its net margin of roughly 39% reflects a competitive position in a hardware market often characterized by high barriers to entry and specialized engineering requirements.

As of its December 2025 balance sheet, the company carries a debt-to-equity ratio of 0.0x, indicating it has no total debt relative to its shareholder equity. The current ratio is approximately 3.0x, meaning the company holds three times as many current assets as current liabilities to cover its short-term obligations. Free cash flow, which is the cash remaining after paying for operating costs and capital expenditures, reached nearly $4.3 billion for the fiscal year ended Dec. 31, 2025.

The case for SalesforceSalesforce dominates the enterprise software landscape through its integrated platform that combines data, applications, and artificial intelligence. Its current strategy focuses on the Agentforce 360 platform, which enables organizations to deploy autonomous AI agents across their sales and service departments. Unlike hardware companies that may rely on a few large buyers, no single customer accounts for more than 10% of Salesforce's total revenue. This provides a diversified revenue base as the company shifts from selling traditional software subscriptions to usage-based AI services.

In the fiscal year ended Jan. 31, 2026, revenue reached close to $41.5 billion. This marks a 9.6% increase over the prior fiscal year, suggesting steady expansion of its software ecosystem. Net income for the period was approximately $7.5 billion, resulting in a net margin of roughly 18%. While its growth rate is more moderate than in previous years, the company has increasingly focused on improving its bottom-line efficiency while integrating new AI capabilities across its entire product suite.

According to its January 2026 balance sheet, the debt-to-equity ratio is approximately 0.3x. This figure, which compares total debt to shareholder equity, suggests a conservative approach to leverage. The current ratio is nearly 0.8x, indicating that current liabilities exceed current assets and reflecting the company's large deferred revenue balance. Free cash flow reached close to $14.4 billion, calculated as operating cash flow minus capital expenditures. Note that stock-based compensation accounted for roughly 23.4% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back to cash flow.

Risk profile comparisonArista Networks faces significant risks from revenue concentration, as a small group of cloud and AI customers accounts for a large share of its sales. The company is also vulnerable to supply chain disruptions because it relies on a limited number of vendors, such as Broadcom (AVGO +0.51%), for critical silicon components. Furthermore, international trade policies and tariffs could impact its operations in Asian markets, particularly Taiwan and China. Competitive pressure remains high as established rivals like Hewlett Packard Enterprise (HPE +3.64%) and Extreme Networks (EXTR +0.36%) vie for market share in the high-speed switching space.

Salesforce must navigate the operational complexities of integrating major acquisitions, including recent deals for Braze (BRZE -0.01%), Loops, and Fin. The company also faces intense competition in the fragmented AI software market, where both established software giants and agile start-ups are rapidly introducing new features. Cybersecurity is a constant threat, as any breach of its platforms could result in the loss of sensitive customer data and damage the company's reputation. Finally, Salesforce must comply with evolving global regulations, such as the EU AI Act, which could increase the cost and complexity of its international operations.

Valuation comparisonSalesforce appears to be the more value-oriented choice based on its lower multiples, while Arista Networks commands a premium for its faster growth.

MetricArista NetworksSalesforceForward P/E41.6x14.9xP/S ratio20.5x4.7xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.

The P/S ratio measures a company's market value relative to its sales over the past twelve months. Investors often use the Forward P/E to compare a stock price against future earnings estimates provided by analysts.

When comparing Arista and Salesforce, investors should consider a few key factors. Let's have a look at them and see what that tells us about each stock.

To start, there's growth. In this category, Arista has a clear edge. It has averaged 33% year-over-year revenue growth since 2021. Salesforce, meanwhile, has averaged 13% -- still a very respectable figure, but a far cry from Arista. What's more, in recent quarters, the gap between Arista and Salesforce has widened. In its most recent quarter, Arista posted year-over-year revenue growth of nearly 38%, while Salesforce's revenue growth dipped to 11%.

Another factor to consider is each company's profitability. Let's examine operating margin. Arista's current operating margin is 43.1%, having grown steadily over the past several years. Salesforce, too, has seen its profitability improve, but its operating margin is currently 21.5%, roughly half of Arista's rate.

Last, there's valuation. It is here that Salesforce can make a strong claim. Since both companies have been consistently profitable, let's examine their respective price-to-earnings (P/E) multiples. Salesforce has a P/E ratio of 22x, while Arista's is 55x. Even if using forward earnings estimates, Arista stock still carries roughly twice the P/E multiple of Salesforce stock.

In summary, these two stocks are both impressive in their own right. However, in a head-to-head matchup, Arista comes out ahead in two key factors: growth and profitability. Salesforce, meanwhile, has a significant valuation advantage. Ultimately, investors will likely gravitate toward the stock that best matches their investing style. Growth-oriented investors will likely select Arista, while more value-conscious investors will lean toward Salesforce.

Agents do things. Agentic AI will plan a trip, yes, but it will also book the travel arrangements, the lodging, and more.

These agents run on data and need fast, reliable connectivity for automation to occur (i.e., more computing power). Networks send the information as software coordinates everything.

The first agentic AI stock to own is Arista Networks (ANET), which builds high-performance ethernet equipment that connects systems running AI workloads. It has a $237 billion market capitalization and has fantastic fundamentals.

Revenue last quarter topped $3 billion while net income was $1.21 billion. After recent volatility, its forward price-earnings ratio fell to 36.5X. But the fundamentals are intact – 2026 sales guidance was raised to roughly $12.6 billion (a 40% jump from last year).

No wonder institutions have been supporters over the past year:

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Disclosure: at the time of publication, the author holds no positions in ANET or NOW.

An updated edition of the Aug. 28, 2026, article.

Cloud computing facilitates the sharing of computing resources among multiple users through web browsers and cloud-based applications, thereby improving resource utilization and operational efficiency. Moreover, it enables businesses to deliver seamless omnichannel customer experiences while lowering infrastructure-related expenses and operating costs. Cloud computing has emerged as a key long-term growth catalyst for the technology sector, helping businesses enhance operational efficiency, accelerate innovation and gain a competitive edge.

The rapid adoption of cloud-based solutions across industries can be attributed to their flexibility, scalability, accessibility and cost-effectiveness. Leveraging virtualization technology, cloud computing has become integral to digital transformation initiatives, enabling enterprises to access, store and manage data over the Internet while reducing their reliance on traditional on-premises IT infrastructure.

The growing adoption of cloud technologies presents a compelling investment opportunity for investors looking to capitalize on the sector's long-term growth potential. Leading technology companies, including Alphabet Inc. (GOOGL - Free Report) , Microsoft Corporation (MSFT - Free Report) , Arista Networks, Inc. (ANET - Free Report) and Ciena Corporation (CIEN - Free Report) , are well-positioned to benefit from this trend. Before taking a closer look at these stocks, let us examine the key factors driving the increasing adoption of cloud computing across industries.

With a pay-per-use pricing model, enterprises only pay for the computing resources they use. This has helped enterprises reduce operating costs for maintaining on-site data centers and deploying IT experts to manage the infrastructure, making it a highly cost-effective solution. With easy access to a plethora of innovative technologies, cloud computing increases productivity with greater agility and flexibility, and improves scalability with higher economies of scale. Moreover, cloud computing services are delivered over a highly secure network with low latency for applications and data backup facilities for improved reliability.

Cloud computing services fall into four broad categories – infrastructure as a service (IaaS), platform as a service (PaaS), serverless / function as a service (FaaS) and software as a service (SaaS) – each offering different levels of control, flexibility and management options to business enterprises. Cloud computing, which relies heavily on virtualization and automation technologies, provides the requisite infrastructure for AI (artificial intelligence) and machine learning (ML) workloads. It delivers powerful computing abilities to process and analyze data, creating an ideal platform for Big Data management.

Per Grand View Research, the global cloud computing market size is expected to swell to $3,349.6 billion by 2033 from $943.7 billion in 2025 at a CAGR of 16% with a variety of capabilities across multiple industries. These include diverse use cases such as improved patient monitoring and outcomes in healthcare, personalized financial management and predictive spending, immersive learning in education, superior inventory management in retail and predictive maintenance and better supply chain management in the manufacturing sector.

If you want to capitalize on this buzzing trend, our Cloud Computing Thematic Investing Screen could make it easy to identify high-potential stocks in this domain at any given time, just like the four mentioned above. By leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to benefit from emerging trends.

Ready to uncover more transformative thematic investment ideas? Explore 40 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.

Key Cloud Computing Stocks to WatchAlphabet has been growing rapidly in the booming cloud-computing market. Over the last few years, the company has evolved from primarily being a search engine provider to a leading provider of cloud computing technology. Google Cloud is one of the key catalysts behind the company’s growth, driven by its strengthening cloud service offerings.

The solid adoption of the Google Cloud Platform and Google Workspace and continued investments in infrastructure, security, data management, analytics and AI have helped Google  expand its cloud footprint worldwide. The increasing number of cloud regions and availability zones globally has been a hallmark of Google Cloud. Currently, Google Cloud has 43 cloud regions, 130 availability zones and more than 200 network edge locations across more than 200 countries. Google Cloud is considered the third-largest cloud player among numerous cloud providers worldwide.

Google Cloud is benefiting from Alphabet’s years of investments in AI infrastructure, custom silicon and enterprise software that are beginning to translate into substantial financial returns. Alphabet’s growing GenAI capabilities and significant investments in cloud computing are potential catalysts for the future amid stiff competition in the cloud space and increasing regulatory headwinds. Alphabet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Microsoft is one of the most prominent public cloud providers that delivers a wide variety of IaaS and PaaS solutions at scale. Microsoft Azure, its cloud computing platform, lets users build, run and scale applications in the cloud. It offers a variety of services, including storage, networking, analytics and AI.

Microsoft has doubled down on the cloud computing opportunity. Azure’s increased availability in more than 60 announced regions globally has strengthened Microsoft's competitive position in the cloud computing market. Operating through a vast network of global data centers that ensure high availability and reliability for applications, Azure offers seamless access to all the services included in the portal once customers subscribe to it. Subscribers can use these services to create cloud-based resources, such as virtual machines (VMs) and databases, which can then be assembled into running environments used to host workloads and store data.

As Microsoft continues to push the boundaries of networking technology, it aims to create innovative, resilient and secure solutions that enable businesses to leverage AI and the cloud to their fullest potential. This Zacks Rank #3 (Hold) company is investing heavily in AI-powered cloud services, integrating Azure OpenAI Service, Copilot and ML into various cloud solutions, making AI a central feature of Azure to help organizations manage their applications with greater confidence and efficiency.

Arista provides cloud networking solutions for data centers and cloud computing environments. The company utilizes the Linux-based Extensible Operating System (EOS), which supports various cloud and virtualization solutions.

In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance, along with programmability that enables integration with third-party applications for network management, automation and orchestration. Arista provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency. The company boasts a multi-domain modern software approach built upon a unique and differentiating foundation, the single EOS and CloudVision stack.

The versatility of Arista’s unified software stack across various use cases, including WAN routing and campus and data center infrastructure, sets it apart from other competitors in the industry. With customers increasingly deploying transformative cloud networking solutions, the company has announced several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. This Zacks Rank #2 company has introduced cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services.

Ciena has emerged as a key beneficiary of the cloud computing boom. The company’s advanced optical networking and automation solutions are witnessing strong demand as hyperscalers and telecom operators continue expanding data center infrastructure to support AI workloads and rising global data traffic. Higher demand for bandwidth and adoption of cloud architectures for generative AI applications and AI model training remain key growth drivers, as the company expects its profitability to improve on a balanced mix of new and existing customers.

Ciena is well-positioned to capitalize on the secular growth trend through its industry-leading coherent optical technology portfolio, particularly its WaveLogic platform. The company’s latest WaveLogic 6 Extreme solution supports transmission speeds of up to 1.6 terabits per second per wavelength, enabling cloud providers to scale network capacity efficiently while lowering power consumption and operating costs by maximizing existing fiber infrastructure without the need for extensive new fiber deployment.

Ciena’s portfolio, including WaveLogic, RLS, Navigator and Interconnect Solutions, remains a recognized industry standard. The company is also strengthening its position through software-driven networking solutions. Its Blue Planet automation platform helps operators simplify network management through AI-driven orchestration, analytics and automation capabilities. This Zacks Rank #1 company’s technological leadership, expanding hyperscaler relationships and growing software capabilities position it favorably within the rapidly evolving AI infrastructure ecosystem.

As artificial intelligence and cloud migration continue to reshape the corporate landscape, investors often find themselves choosing between hardware and software champions. Which of these high-growth leaders, Arista Networks (ANET +0.83%) or Datadog (DDOG +7.17%), is the better buy today?

Arista Networks provides the physical switches and software that allow data to move quickly through massive cloud data centers. Datadog offers a software-as-a-service platform that helps companies monitor the health and security of those same cloud environments. Both companies are essential players in the modern digital economy, though they occupy different parts of the infrastructure stack.

The case for Arista NetworksArista Networks is a leader among tech stocks that power the physical backbone of the internet. The company designs data-driven networking platforms for cloud titans, financial services firms, and specialty AI providers. Because a limited number of large customers account for a significant portion of revenue, this customer concentration adds a layer of risk to the business.

In FY 2025, revenue reached nearly $9.0 billion, which represents growth of approximately 28.6% over the previous year. Net income for the same period was close to $3.5 billion. This resulted in a net margin of roughly 39%, which is the percentage of total revenue remaining as profit after all operating and non-operating expenses are paid.

As of its December 2025 balance sheet, Arista Networks reported a debt-to-equity ratio of 0.0x, meaning it carries virtually no debt relative to the value owned by shareholders. The current ratio of 3.0x suggests the company has three times more short-term assets than liabilities, which measures its ability to cover immediate financial obligations. Free cash flow, the cash remaining after capital expenditures, was approximately $4.3 billion in FY 2025.

The case for DatadogDatadog provides an AI-powered observability and security platform that brings infrastructure, applications, and data into a single view. The company serves approximately 32,700 customers globally, ranging from high-growth start-ups to large enterprise organizations. Its software helps engineering and security teams manage complex cloud environments, ensuring that applications remain stable and secure as they scale.

In FY 2025, revenue reached nearly $3.4 billion, reflecting growth of approximately 27.7% compared to the prior year. Net income for this period was close to $107.7 million. The company reported a net margin of roughly 3.1%, indicating the portion of total revenue converted into profit after accounting for all costs of doing business.

As of its December 2025 balance sheet, Datadog maintained a debt-to-equity ratio of 0.4x. This ratio compares a company's total debt to the value owned by its shareholders. The current ratio of 3.4x indicates a strong ability to meet short-term liabilities. Free cash flow for FY 2025 was close to $1.0 billion. Note that stock-based compensation represented roughly 71.5% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparisonArista Networks faces significant risks related to its reliance on a small number of massive cloud customers for a large portion of its sales. The company is also dependent on Broadcom (AVGO +0.45%) for critical silicon components, creating a potential supply chain bottleneck. Furthermore, international trade tensions and export controls regarding AI technologies could impact its ability to sell in certain global markets.

Datadog operates in a highly competitive market where it must outpace both home-grown solutions and diversified giants like Microsoft (MSFT -0.22%) and Cisco Systems (CSCO +0.51%). The company is also dependent on third-party cloud infrastructure providers to host its own services, which could lead to increased costs or service interruptions. Rapid growth also presents organizational challenges in maintaining its engineering culture and meeting complex data privacy regulations across 160 countries.

Valuation comparisonArista Networks appears more attractive on a price-to-earnings basis, while both companies trade at similar multiples relative to their trailing revenue.

Metric Arista Networks Datadog Forward P/E 44.5x 102.7x P/S ratio 21.9x 23.6x Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

The Forward P/E, which compares the stock price to future earnings estimates, suggests investors are paying a much higher premium for Datadog's expected profits. The P/S ratio, which measures market capitalization relative to sales over the past twelve months, reflects a valuation closer to parity between the hardware and software providers.

If I had to own just one of these for the next decade, I'd probably lose sleep over choosing the better of the two. But I'd go with Arista Networks.

Arista just crossed $3 billion in quarterly revenue for the first time in Q2 2026, growing more than 40% year over year. Every major AI data center being built needs high-speed networking, and Arista keeps winning that business. The margins are exceptional and the balance sheet is clean.

I'm a fan of Datadog too. Quarter after quarter, the company is beating earnings estimates by wide margins, and Q2 2026 was no exception. Revenue grew at a strong double-digit rate, and free cash flow is building steadily. AI is driving customers to monitor more infrastructure, not less, which keeps expanding Datadog's addressable market.

The honest reason I'd pick Arista is infrastructure. You cannot run AI at scale without the networking, and Arista is the company most enterprises are turning to for that. Investors will get a fresh update when both companies report Q3 2026 results in early November.

Counterpoint Mutual Funds LLC cut its holdings in shares of Arista Networks, Inc. (NYSE:ANET – Free Report) by 68.4% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,420 shares of the technology company’s stock after selling 3,078 shares during the period. Counterpoint Mutual Funds LLC’s holdings in Arista Networks were worth $289,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the business. ABS Investment Management LLC acquired a new position in shares of Arista Networks in the 2nd quarter valued at about $29,000. ABS Direct Equity Fund LLC purchased a new stake in shares of Arista Networks in the second quarter worth about $29,000. Kelleher Financial Advisors purchased a new stake in shares of Arista Networks in the second quarter worth about $31,000. Cornerstone Financial Management LLC grew its holdings in Arista Networks by 61.9% during the second quarter. Cornerstone Financial Management LLC now owns 183 shares of the technology company’s stock worth $31,000 after acquiring an additional 70 shares during the period. Finally, Sankala Group LLC acquired a new stake in Arista Networks during the fourth quarter worth about $27,000. 82.47% of the stock is currently owned by institutional investors and hedge funds.

Shares of Arista Networks stock opened at $182.88 on Tuesday. Arista Networks, Inc. has a twelve month low of $114.52 and a twelve month high of $217.41. The business has a 50-day moving average price of $198.29 and a 200 day moving average price of $175.18. The firm has a market cap of $230.65 billion, a PE ratio of 56.01, a P/E/G ratio of 2.06 and a beta of 1.60.

Arista Networks (NYSE:ANET – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.89 by $0.13. The company had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $2.83 billion. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%. Arista Networks’s revenue for the quarter was up 37.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.73 earnings per share. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, sell-side analysts expect that Arista Networks, Inc. will post 3.79 EPS for the current year.
Wall Street Analysts Forecast Growth
ANET has been the subject of several recent research reports. Truist Financial lifted their price target on Arista Networks from $175.00 to $234.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. TD Cowen upped their price objective on Arista Networks from $210.00 to $250.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Jefferies Financial Group set a $250.00 price objective on shares of Arista Networks in a research note on Wednesday, August 5th. Rosenblatt Securities raised their price objective on shares of Arista Networks from $210.00 to $280.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Finally, Evercore reaffirmed an “outperform” rating on shares of Arista Networks in a report on Wednesday, October 7th. Two research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of $235.45.

Check Out Our Latest Report on ANET

Insiders Place Their Bets
In other news, insider Kenneth Duda sold 17,333 shares of the company’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $203.50, for a total transaction of $3,527,265.50. Following the completion of the transaction, the insider directly owned 12,976 shares of the company’s stock, valued at $2,640,616. This represents a 57.19% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of the stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $198.95, for a total value of $59,685,000.00. Following the transaction, the insider owned 180,543,048 shares in the company, valued at $35,919,039,399.60. This trade represents a 0.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 3,584,116 shares of company stock valued at $733,396,013. 2.70% of the stock is owned by insiders.

Arista Networks Profile
(Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, cloud service providers, enterprises and specialized computing environments. The company’s products are designed to support high-performance, scalable and automated networks used for cloud computing, artificial intelligence, data analytics and other demanding applications.

Arista’s portfolio includes data center and campus switches, routing platforms, wireless networking products, network operating software and network management tools.

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Want to see what other hedge funds are holding ANET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arista Networks, Inc. (NYSE:ANET – Free Report).

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AI data center spending is splitting networking stocks into clear winners and laggards, and the gap between Ciena, Arista, and Cisco reveals which part of the network hyperscalers are actually racing to build.

Networking hardware is leading a broad technology rebound, and suppliers of optical links and Ethernet switches for AI data centers are drawing the biggest buying. By Monday afternoon, Ciena Corporation (NYSE:CIEN | CIEN Price Prediction) stock was up 4% to $347.48. Meanwhile, Arista Networks (NYSE:ANET) stock also climbed 4%, hitting $183.32 and keeping pace with the gain in Ciena shares.

Shares of Ciena and Arista are running well ahead of the wider technology group. The iShares U.S. Technology ETF (NYSEARCA:IYW) is up 1.29%. Large-cap tech is advancing at a similar pace, with the Invesco QQQ Trust (NASDAQ:QQQ) also up 1.31%.

A sharp pullback in Ciena and Arista shares over the prior week came before the bounce. Hyperscaler spending on AI infrastructure remains the core support for Ciena and Arista. Both companies build the networks that move data between and inside AI data centers.

Supply Limits Keep Ciena’s Backlog Growing Ciena’s fiscal Q3 2026 results showed adjusted EPS of $2.11 against a $1.73 consensus. The company’s revenue rose 37% year over year (YoY) to $1.67 billion.

Cloud providers did the biggest spending for Ciena, accounting for 53% of revenue on 82% YoY growth. Management raised its fiscal 2026 revenue guidance to $6.42 billion and issued a preliminary fiscal 2027 outlook calling for at least 30% revenue growth.

Strong demand also shows in Ciena’s backlog, as the company ended Q3 with $8.5 billion on the books and projects to exit fiscal 2026 with over $10 billion. During the earnings call, executives stated, “The demand is absolutely there.” Supply remains the limit, and management doesn’t projects the market to return to balance before 2028.

Optical Links and AI Switches Ride One Spending Wave Ciena sells optical networking equipment that links data centers, while Arista and Cisco Systems (NASDAQ:CSCO) sell the switches and routers inside them. Pluggable optics were a standout, with Ciena’s pluggables revenue more than doubling YoY in Q3 as the WaveLogic 6 Nano ramped. Notably, CSCO stock is practically unchanged at $107.06 today, so it’s not keeping pace with CIEN and ANET today.

Arista’s EtherLink switches power Ethernet-based AI fabrics in hyperscale data centers. Management frames the Arista 2.0 strategy around networking. The company sees networking as the “central nervous system” for infrastructure, and EtherLink adoption has spread to a broader roster of cloud, AI and neocloud customers.

Scale-across networks, which connect AI training clusters spread over multiple data centers, are Ciena’s next growth leg. Its RLS HyperRail line system, co-created with hyperscalers, is on track for initial customer adoption by year-end and material revenue through 2027. Co-packaged optics offer another lever, with revenue projects to begin in 2027 and grow into 2028 for Ciena.

Improving operating leverage is showing up in Ciena’s results too, with adjusted gross margin expanding 450 basis points YoY to 46.4%. The company’s chief executive asserted in the earnings release that “AI continues to drive compounding waves of network investment.”

Ciena’s Shipping Pace Is the Next Test Ciena’s growth carries concentration risk, since two customers made up 41.7% of its Q3 revenue. Its outlook also assumes continued AI infrastructure spending by cloud providers, stable optical component supply and no material change to tariff policy.

Next quarter’s results could show whether Ciena can hit its fiscal Q4 2026 revenue guidance of $1.75 billion under tight component supply. Traders will be tracking whether Ciena and Arista shares keep outpacing the iShares U.S. Technology ETF and the Invesco QQQ Trust.

Long-term supplier agreements running through 2029 could ease Ciena’s bottleneck, though recent moves in its shares show how quickly sentiment can turn. Investors may want to hold smaller share stakes until the supply squeeze resolves.

Contact [email protected] for any questions or corrections.

On October 19, 2026, we conducted a DCF analysis for Arista Networks Inc ANET. The stock has experienced a volatile price performance recently, with a significant drop of 18.3% over the past week and a 10.4% decline over the past month, although it remains up 35.1% year-to-date and 21.2% over the past year.

DCF Earnings-based intrinsic value: $90.27 vs current price: $176.98 (margin of safety: -96.1%) DCF FCF-based intrinsic value: $115.07 (second opinion) GF Score™: 99/100, indicating high reliability of the DCF inputs What Is ANET Worth? DCF Earnings-Based Model The DCF earnings-based model for Arista Networks Inc indicates a significant overvaluation. The model assumes a current EPS of $3.17 and a robust 10-year earnings growth rate of 35.4%. The discount rate is set at 12%, combining the risk-free rate and equity risk premium, while a terminal growth rate of 4% is applied for the subsequent ten years.

Parameter Value Current EPS (TTM, excl. non-recurring) $3.17 10-Year Growth Rate 35.4% 10-Year Treasury Rate 5.08% Discount Rate (ceil(Treasury) + 6%) 12% Terminal Growth Rate 4% The two-stage model consists of a growth phase for the first ten years, followed by a terminal phase. The calculations yield the following results:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 35.4%, discounted at 12% $37.88 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 12% $52.39 Intrinsic Value Growth + Terminal $90.27 With the current price at $176.98, the stock is significantly overvalued, reflecting a margin of safety of -96.1%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates a stronger correlation between stock prices and earnings than with free cash flow. For a detailed calculation, visit the ANET DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for Arista Networks Inc is calculated at $115.07. This value aligns with the earnings-based model, both indicating that the stock is significantly overvalued, with a margin of safety of -53.8%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for ANET stands at $170.16, providing a third perspective on valuation. This proprietary measure from GuruFocus is derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—concur that the stock is overvalued, reinforcing the caution for potential investors. For more insights, check the GF Value™.

What Does ANET's GF Score™ Tell Us? The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. ANET's score of 99/100 indicates exceptional performance across these metrics, suggesting a strong foundation for the DCF analysis. The predictability rank of 3/5 stars indicates a moderate level of reliability for the DCF model.

Metric Rating GF Score™ 99/100 Financial Strength 10/10 Profitability 10/10 Growth 10/10 Valuation 7/10 Momentum 10/10

Key Assumptions and Limitations It's crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with lower predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future conditions.

What This Means for Investors In summary, the consensus from the DCF earnings model, the FCF model, and the GF Value™ indicates that Arista Networks Inc is significantly overvalued. The guru ownership signal shows that 11 gurus currently hold the stock, with 5 adding and 7 trimming their positions, while insiders have sold a substantial $1.5 billion worth of shares over the past year. This insider selling, combined with the overvaluation signals from the models, suggests caution for potential investors. For further analysis, you can explore the ANET DCF Calculator.

Frequently Asked Questions What is ANET's intrinsic value based on DCF?

Answer: earnings-based $90.27, FCF-based $115.07

Is ANET overvalued or undervalued?

Answer: ANET is significantly overvalued based on DCF and GF Value™ consensus.

How reliable is the DCF model for ANET?

Answer: The DCF model's reliability is moderate, with a predictability rank of 3/5.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

IFP Advisors Inc grew its position in shares of Arista Networks, Inc. (NYSE:ANET – Free Report) by 432.8% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 42,654 shares of the technology company’s stock after buying an additional 34,648 shares during the period. IFP Advisors Inc’s holdings in Arista Networks were worth $8,684,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently modified their holdings of the company. Robertson Stephens Wealth Management LLC increased its holdings in shares of Arista Networks by 150.5% during the third quarter. Robertson Stephens Wealth Management LLC now owns 20,352 shares of the technology company’s stock worth $4,143,000 after purchasing an additional 12,229 shares during the period. Frank Rimerman Advisors LLC raised its position in shares of Arista Networks by 75.1% in the third quarter. Frank Rimerman Advisors LLC now owns 22,216 shares of the technology company’s stock valued at $4,523,000 after buying an additional 9,529 shares in the last quarter. Birch Hill Investment Advisors LLC raised its position in shares of Arista Networks by 978.1% in the third quarter. Birch Hill Investment Advisors LLC now owns 52,979 shares of the technology company’s stock valued at $10,786,000 after buying an additional 48,065 shares in the last quarter. Absolute Capital Management LLC boosted its stake in shares of Arista Networks by 98.2% in the third quarter. Absolute Capital Management LLC now owns 12,281 shares of the technology company’s stock valued at $2,500,000 after buying an additional 6,084 shares during the period. Finally, Forbes J M & Co. LLP boosted its stake in shares of Arista Networks by 12.9% in the third quarter. Forbes J M & Co. LLP now owns 105,114 shares of the technology company’s stock valued at $19,722,000 after buying an additional 12,027 shares during the period. Institutional investors and hedge funds own 82.47% of the company’s stock.

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

Positive Sentiment: BNP Paribas Exane upgraded Arista Networks to “strong buy,” providing a favorable analyst signal for the stock. Ticker Report article Positive Sentiment: A hammer chart pattern suggests ANET may have found technical support after its recent pullback. The article also cites broad upward revisions to Wall Street earnings estimates, which could support a near-term rebound. Zacks bottom-fisher article Positive Sentiment: Arista remains exposed to the expanding AI-infrastructure market. Comparisons with Akamai focus on Arista’s stronger growth prospects and profitability, factors that could help justify a premium valuation if AI-related demand remains strong. AKAM versus ANET article Neutral Sentiment: After roughly a sevenfold five-year rally, investors are reassessing whether Arista’s cash generation can support its current valuation. The debate reflects elevated expectations rather than a reported deterioration in operations. Yahoo Finance valuation article Negative Sentiment: Reports that Arista shares fell following insider selling are weighing on sentiment, as investors may interpret sales as a cautionary signal even though insider transactions do not necessarily indicate weaker fundamentals. American Banking News insider-selling article Analysts Set New Price Targets A number of equities research analysts recently issued reports on ANET shares. Truist Financial increased their price target on Arista Networks from $175.00 to $234.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Barclays reaffirmed an “overweight” rating and issued a $289.00 price objective (up from $195.00) on shares of Arista Networks in a report on Wednesday, August 5th. Jefferies Financial Group set a $250.00 price objective on Arista Networks in a report on Wednesday, August 5th. UBS Group reiterated a “buy” rating and set a $259.00 target price (up from $187.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Finally, Erste Group Bank raised Arista Networks from a “hold” rating to a “buy” rating in a report on Wednesday, July 15th. Two research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Arista Networks currently has a consensus rating of “Buy” and an average target price of $235.45. Check Out Our Latest Research Report on ANET

Arista Networks Trading Down 0.1% Shares of NYSE:ANET opened at $176.84 on Monday. The firm has a 50 day moving average of $198.46 and a 200-day moving average of $174.75. The stock has a market capitalization of $223.03 billion, a PE ratio of 55.78, a PEG ratio of 2.06 and a beta of 1.60. Arista Networks, Inc. has a 12 month low of $114.52 and a 12 month high of $217.41.

Arista Networks (NYSE:ANET – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share for the quarter, topping analysts’ consensus estimates of $0.89 by $0.13. The company had revenue of $3.04 billion during the quarter, compared to the consensus estimate of $2.83 billion. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The firm’s quarterly revenue was up 37.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.73 EPS. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, research analysts predict that Arista Networks, Inc. will post 3.79 EPS for the current fiscal year.

Insider Buying and Selling In other Arista Networks news, CEO Jayshree Ullal sold 767,029 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $201.22, for a total value of $154,341,575.38. Following the sale, the chief executive officer owned 16,387,981 shares of the company’s stock, valued at approximately $3,297,589,536.82. This trade represents a 4.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $203.30, for a total value of $60,990,000.00. Following the completion of the sale, the insider directly owned 181,143,048 shares in the company, valued at approximately $36,826,381,658.40. This represents a 0.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 3,584,116 shares of company stock worth $733,396,013 over the last three months. 2.70% of the stock is currently owned by insiders.

Arista Networks Profile (Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, cloud service providers, enterprises and specialized computing environments. The company’s products are designed to support high-performance, scalable and automated networks used for cloud computing, artificial intelligence, data analytics and other demanding applications.

Arista’s portfolio includes data center and campus switches, routing platforms, wireless networking products, network operating software and network management tools.

Read More Five stocks we like better than Arista Networks These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom Want to see what other hedge funds are holding ANET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arista Networks, Inc. (NYSE:ANET – Free Report).

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Birch Hill Investment Advisors LLC raised its holdings in Arista Networks, Inc. (NYSE:ANET – Free Report) by 978.1% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 52,979 shares of the technology company’s stock after acquiring an additional 48,065 shares during the period. Birch Hill Investment Advisors LLC’s holdings in Arista Networks were worth $10,786,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently made changes to their positions in the stock. State Street Corp grew its stake in shares of Arista Networks by 159.4% during the second quarter. State Street Corp now owns 121,303,125 shares of the technology company’s stock worth $20,606,975,000 after buying an additional 74,541,134 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its position in Arista Networks by 34.6% during the second quarter. Massachusetts Financial Services Co. MA now owns 9,725,196 shares of the technology company’s stock valued at $1,712,788,000 after acquiring an additional 2,497,275 shares during the last quarter. Envestnet Asset Management Inc. lifted its stake in shares of Arista Networks by 199.0% in the 2nd quarter. Envestnet Asset Management Inc. now owns 9,630,196 shares of the technology company’s stock valued at $1,635,978,000 after purchasing an additional 6,409,612 shares during the period. Deutsche Bank AG grew its stake in Arista Networks by 4.3% during the second quarter. Deutsche Bank AG now owns 9,357,496 shares of the technology company’s stock worth $1,589,651,000 after purchasing an additional 388,354 shares during the period. Finally, Amundi grew its position in shares of Arista Networks by 5.7% during the 1st quarter. Amundi now owns 9,064,443 shares of the technology company’s stock worth $1,112,932,000 after buying an additional 491,173 shares during the period. Institutional investors own 82.47% of the company’s stock.

Arista Networks Trading Down 4.7% Shares of NYSE:ANET opened at $176.84 on Friday. The stock has a market capitalization of $223.03 billion, a P/E ratio of 55.78, a price-to-earnings-growth ratio of 2.06 and a beta of 1.60. Arista Networks, Inc. has a 12-month low of $114.52 and a 12-month high of $217.41. The stock’s 50-day moving average price is $198.46 and its 200-day moving average price is $174.34.

Arista Networks (NYSE:ANET – Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The technology company reported $1.02 EPS for the quarter, beating analysts’ consensus estimates of $0.89 by $0.13. The company had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.83 billion. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The firm’s revenue was up 37.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.73 EPS. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. As a group, research analysts predict that Arista Networks, Inc. will post 3.79 EPS for the current year. Wall Street Analysts Forecast Growth ANET has been the topic of several research reports. The Goldman Sachs Group reiterated a “buy” rating and set a $225.00 price objective on shares of Arista Networks in a report on Wednesday, August 5th. Citigroup reiterated a “buy” rating and set a $248.00 price objective (up from $215.00) on shares of Arista Networks in a report on Thursday, October 8th. TD Cowen increased their price objective on Arista Networks from $210.00 to $250.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. UBS Group reissued a “buy” rating and issued a $259.00 price target (up from $187.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $220.00 target price (up from $190.00) on shares of Arista Networks in a research note on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Arista Networks currently has an average rating of “Buy” and a consensus target price of $235.45.

Get Our Latest Report on ANET

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

Positive Sentiment: BNP Paribas Exane upgraded Arista Networks to “strong buy,” providing a favorable analyst signal for the stock. Ticker Report article Positive Sentiment: A hammer chart pattern suggests ANET may have found technical support after its recent pullback. The article also cites broad upward revisions to Wall Street earnings estimates, which could support a near-term rebound. Zacks bottom-fisher article Positive Sentiment: Arista remains exposed to the expanding AI-infrastructure market. Comparisons with Akamai focus on Arista’s stronger growth prospects and profitability, factors that could help justify a premium valuation if AI-related demand remains strong. AKAM versus ANET article Neutral Sentiment: After roughly a sevenfold five-year rally, investors are reassessing whether Arista’s cash generation can support its current valuation. The debate reflects elevated expectations rather than a reported deterioration in operations. Yahoo Finance valuation article Negative Sentiment: Reports that Arista shares fell following insider selling are weighing on sentiment, as investors may interpret sales as a cautionary signal even though insider transactions do not necessarily indicate weaker fundamentals. American Banking News insider-selling article Insider Transactions at Arista Networks In other news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $203.30, for a total transaction of $60,990,000.00. Following the sale, the insider owned 181,143,048 shares in the company, valued at approximately $36,826,381,658.40. The trade was a 0.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 767,029 shares of the company’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $201.22, for a total transaction of $154,341,575.38. Following the completion of the transaction, the chief executive officer owned 16,387,981 shares in the company, valued at approximately $3,297,589,536.82. The trade was a 4.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 3,627,449 shares of company stock valued at $740,784,723. 2.70% of the stock is owned by insiders.

(Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, cloud service providers, enterprises and specialized computing environments. The company’s products are designed to support high-performance, scalable and automated networks used for cloud computing, artificial intelligence, data analytics and other demanding applications.

Arista’s portfolio includes data center and campus switches, routing platforms, wireless networking products, network operating software and network management tools.

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Barlow Wealth Partners LLC purchased a new position in Arista Networks, Inc. (NYSE:ANET – Free Report) in the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 6,736 shares of the technology company’s stock, valued at approximately $1,371,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. ABS Investment Management LLC bought a new position in Arista Networks during the 2nd quarter valued at $29,000. ABS Direct Equity Fund LLC bought a new stake in shares of Arista Networks in the 2nd quarter worth about $29,000. Kelleher Financial Advisors bought a new stake in shares of Arista Networks in the 2nd quarter worth about $31,000. Cornerstone Financial Management LLC raised its stake in shares of Arista Networks by 61.9% in the 2nd quarter. Cornerstone Financial Management LLC now owns 183 shares of the technology company’s stock valued at $31,000 after purchasing an additional 70 shares in the last quarter. Finally, Sankala Group LLC acquired a new stake in shares of Arista Networks in the 4th quarter valued at about $27,000. Institutional investors own 82.47% of the company’s stock.

Arista Networks Trading Down 5.1% Shares of NYSE:ANET opened at $185.53 on Friday. The firm’s 50 day moving average is $198.69 and its two-hundred day moving average is $174.33. The firm has a market capitalization of $234.00 billion, a P/E ratio of 58.53, a PEG ratio of 2.27 and a beta of 1.60. Arista Networks, Inc. has a 52 week low of $114.52 and a 52 week high of $217.41.

Arista Networks (NYSE:ANET – Get Free Report) last announced its earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.89 by $0.13. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The firm had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.83 billion. During the same quarter in the prior year, the firm posted $0.73 EPS. Arista Networks’s revenue was up 37.7% compared to the same quarter last year. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. Analysts predict that Arista Networks, Inc. will post 3.79 EPS for the current year. Analyst Ratings Changes Several equities analysts have recently commented on ANET shares. Sanford C. Bernstein began coverage on shares of Arista Networks in a research report on Wednesday, September 30th. They set an “outperform” rating and a $250.00 price target on the stock. The Goldman Sachs Group restated a “buy” rating and set a $225.00 price objective on shares of Arista Networks in a research note on Wednesday, August 5th. Jefferies Financial Group set a $250.00 target price on Arista Networks in a research report on Wednesday, August 5th. Evercore reiterated an “outperform” rating on shares of Arista Networks in a research report on Wednesday, October 7th. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $220.00 price target (up from $190.00) on shares of Arista Networks in a report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Arista Networks presently has a consensus rating of “Moderate Buy” and an average price target of $235.45.

View Our Latest Analysis on ANET

Insider Buying and Selling at Arista Networks In related news, CEO Jayshree Ullal sold 130,553 shares of the firm’s stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $217.10, for a total transaction of $28,343,056.30. Following the completion of the sale, the chief executive officer directly owned 4,774,691 shares in the company, valued at approximately $1,036,585,416.10. This trade represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $198.95, for a total transaction of $59,685,000.00. Following the sale, the insider owned 180,543,048 shares of the company’s stock, valued at $35,919,039,399.60. The trade was a 0.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 3,627,449 shares of company stock valued at $740,784,723. Corporate insiders own 2.70% of the company’s stock.

Arista Networks Company Profile (Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, campus environments and high-performance computing applications. Its products include Ethernet switches, routers, wireless access points and related networking equipment designed to support cloud computing, artificial intelligence, enterprise and service-provider networks.

The company’s software portfolio includes Arista EOS, its network operating system, and CloudVision, a platform that helps customers manage, automate and monitor network infrastructure.

See Also Five stocks we like better than Arista Networks ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle Beyond the GPU: Credo Paves the Next AI Data Superhighway Want to see what other hedge funds are holding ANET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arista Networks, Inc. (NYSE:ANET – Free Report).

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Shares of Arista Networks (ANET - Free Report) have been struggling lately and have lost 12% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.

While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this cloud networking company is a solid fundamental factor that enhances the prospects of a trend reversal for the stock.

What is a Hammer Chart and How to Trade It?This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'

In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.

When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.

Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.

Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.

Here's What Makes the Trend Reversal More Likely for ANETAn upward trend in earnings estimate revisions that ANET has been witnessing lately can certainly be considered a bullish indicator on the fundamental side. That's because empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

The consensus EPS estimate for the current year has increased 0% over the last 30 days. This means that the Wall Street analysts covering ANET are majorly in agreement about the company's potential to report better earnings than what they predicted earlier.

If this is not enough, you should note that ANET currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Moreover, a Zacks Rank of 2 for Arista Networks is a more conclusive indication of a potential trend reversal, as the Zacks Rank has proven to be an excellent timing indicator that helps investors identify precisely when a company's prospects are beginning to improve.

When investors think about artificial intelligence (AI) infrastructure, Nvidia is often at the top of the list. Nvidia has become the world's largest company thanks to its vaunted graphics processing units (GPUs), which are considered indispensable for training and running AI models.

Another side of the coin is Cisco Systems, a blue chip tech company that makes switches, routers, and other equipment that moves information through data centers.

But there's another company that deserves attention: Arista Networks (ANET -5.04%). And while it may not attract the same attention as Nvidia, Arista is becoming a core AI infrastructure play by helping solve one of the biggest challenges facing data centers.

Image source: The Motley Fool.

What does Arista Networks do? AI data centers rely on thousands of graphics processing units (GPUs) working together to train and run complex artificial intelligence models. But all that computing power doesn't mean much if the processors can't communicate quickly enough. Massive amounts of data need to move between chips, servers, and storage systems, and slow connections can create bottlenecks that drag down the entire operation.

Arista's role is to make high-speed Ethernet switches that direct traffic through data centers, ensuring information gets where it needs to go without slowing everything down. Arista also develops networking software, including its Extensible Operating System (EOS), that helps operators manage those connections and keep their networks running efficiently.

As AI models become larger and more demanding, data centers need faster connections to keep those expensive GPUs working -- after all, having the most powerful processors is a waste of money if the underlying infrastructure doesn't allow them to work to capacity. And that's exactly the problem Arista is helping its customers solve.

In June, Arista introduced its 7060XE7 Series, a new generation of Ethernet networking equipment designed for AI infrastructure. The systems support connections running at 1.6 terabits per second, with up to approximately 100 terabits per second of total system bandwidth. Arista also says its support for linear pluggable optics can reduce interconnect power consumption by approximately 60% compared with traditional pluggable optics.

That's an important consideration for data center operators already dealing with enormous electricity demands. Faster networking is valuable, but reducing the power required to move information can also help control operating expenses.

ANET Arista Networks$185.58-$9.84 (-5.04%)

NYSE · As of 4:00 PM ET 10/15/26

Arista is expanding its role in AI infrastructure Arista isn't simply selling faster switches. The company is working to make Ethernet a larger part of how AI computing systems communicate.

On Oct. 7, Arista announced a new rack-scale networking architecture developed with technology partners including Advanced Micro Devices, Broadcom, Meta Platforms, Microsoft, and Qualcomm.

Its Etherlink SU-144 design supports connections among up to 144 AI accelerators within a single-hop network, with an architecture that scales across racks to support up to 1,024 accelerators.

The distinction matters because Arista is moving beyond connecting separate servers and data center racks. It's developing technology that allows large groups of AI processors to communicate more closely, using Ethernet as an alternative to proprietary networking systems.

That could give cloud providers greater flexibility when choosing computing equipment and building new AI systems.

Arista stock hasn't disappointed While Nvidia and Cisco may get more attention, Arista stock has outperformed both so far this year, rising 54% versus a 50% jump for Cisco and a 20% gain for Nvidia.

Revenue in the second quarter was $3.03 billion, up 37.7% from a year ago and 12.1% sequentially. Net income was $1.21 billion, up from $888 million a year ago, and diluted earnings per share was $0.95 versus $0.70 in Q2 2025.

ANET data by YCharts

"Customers see networking as the central nervous system for infrastructure from the client to campus to data and AI centers," CEO Jayshree Ullal said.

The company is planning to report its third-quarter earnings on Nov. 3, and has issued guidance for revenue of $3.3 billion and diluted net income between $1.06 and $1.08 per share.

Arista Networks is an AI stock worth owning Nvidia remains a major force in AI computing, and Cisco is a formidable networking competitor. Arista also faces competition from proprietary networking technologies and the risk that major cloud customers will develop their own equipment.

But Arista has a compelling role in the AI build-out. Its equipment addresses a problem that becomes more demanding as companies deploy additional processors -- moving enormous amounts of data quickly, reliably, and without wasting electricity.

Investors don't have to own the company that makes the GPUs to benefit from the expansion of AI infrastructure spending. Arista offers a viable way to participate through the networking equipment that helps put all that computing power to work.

Sax Wealth Advisors LLC raised its stake in shares of Arista Networks, Inc. (NYSE:ANET – Free Report) by 122.7% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,374 shares of the technology company’s stock after buying an additional 4,613 shares during the period. Sax Wealth Advisors LLC’s holdings in Arista Networks were worth $1,705,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently made changes to their positions in the stock. Davidson Trust Co. bought a new position in shares of Arista Networks in the 3rd quarter valued at approximately $3,512,000. Deutsche Bank AG lifted its holdings in Arista Networks by 4.3% in the 2nd quarter. Deutsche Bank AG now owns 9,357,496 shares of the technology company’s stock worth $1,589,651,000 after purchasing an additional 388,354 shares during the last quarter. Ferguson Wellman Capital Management Inc. boosted its position in Arista Networks by 2,827.9% during the third quarter. Ferguson Wellman Capital Management Inc. now owns 52,381 shares of the technology company’s stock worth $10,664,000 after purchasing an additional 50,592 shares during the period. First National Bank of Mount Dora Trust Investment Services bought a new stake in Arista Networks during the first quarter worth approximately $5,279,000. Finally, Whitaker Myers Wealth Managers LTD. boosted its position in Arista Networks by 564.1% during the second quarter. Whitaker Myers Wealth Managers LTD. now owns 16,847 shares of the technology company’s stock worth $2,862,000 after purchasing an additional 14,310 shares during the period. Institutional investors and hedge funds own 82.47% of the company’s stock.

Arista Networks Stock Down 3.1% ANET opened at $204.34 on Wednesday. The firm has a market capitalization of $257.72 billion, a P/E ratio of 64.46, a price-to-earnings-growth ratio of 2.45 and a beta of 1.60. The stock’s 50 day moving average price is $198.89 and its two-hundred day moving average price is $173.36. Arista Networks, Inc. has a 12-month low of $114.52 and a 12-month high of $217.41.

Arista Networks (NYSE:ANET – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The technology company reported $1.02 EPS for the quarter, topping the consensus estimate of $0.89 by $0.13. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%. The company had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $2.83 billion. During the same period in the previous year, the business posted $0.73 EPS. The company’s revenue for the quarter was up 37.7% on a year-over-year basis. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. As a group, analysts anticipate that Arista Networks, Inc. will post 3.79 earnings per share for the current year. More Arista Networks News Here are the key news stories impacting Arista Networks this week:

Positive Sentiment: Arista introduced an open Ethernet rack-scale portfolio designed to connect accelerators across liquid-cooled racks for large AI workloads. The launch strengthens its positioning in high-density AI infrastructure and could expand its addressable market. Arista Networks Stock Dropped, What Is Behind the Fresh Attention? Positive Sentiment: Erste Group Bank raised its Arista Networks FY2026 EPS estimate to $3.79 from $3.78 and its FY2027 estimate to $4.74 from $4.73, while maintaining a Buy rating. The increases are modest but reinforce expectations for continued earnings growth. Positive Sentiment: Arista’s revenue outlook was reportedly raised for the third time this year, while non-cancellable purchase commitments increased 2.7 times to $9.7 billion, suggesting strong customer demand and future visibility. Arista Networks Prospects and Earnings Insiders Place Their Bets In related news, CEO Jayshree Ullal sold 767,029 shares of the company’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $201.22, for a total transaction of $154,341,575.38. Following the completion of the transaction, the chief executive officer directly owned 16,387,981 shares in the company, valued at $3,297,589,536.82. This represents a 4.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $203.30, for a total transaction of $60,990,000.00. Following the completion of the sale, the insider directly owned 181,143,048 shares of the company’s stock, valued at approximately $36,826,381,658.40. This trade represents a 0.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 3,627,449 shares of company stock worth $740,784,723 in the last ninety days. 2.70% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades Several brokerages have commented on ANET. KeyCorp reiterated an “overweight” rating and set a $250.00 price target (up from $200.00) on shares of Arista Networks in a report on Wednesday, August 5th. Piper Sandler reaffirmed an “overweight” rating and set a $240.00 price objective (up from $181.00) on shares of Arista Networks in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft started coverage on shares of Arista Networks in a report on Monday, August 31st. They set a “buy” rating and a $220.00 price objective for the company. TD Cowen lifted their target price on shares of Arista Networks from $210.00 to $250.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Finally, Wells Fargo & Company reissued an “overweight” rating and set a $255.00 target price (up from $200.00) on shares of Arista Networks in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $235.45.

Read Our Latest Research Report on Arista Networks

(Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, campus environments and high-performance computing applications. Its products include Ethernet switches, routers, wireless access points and related networking equipment designed to support cloud computing, artificial intelligence, enterprise and service-provider networks.

The company’s software portfolio includes Arista EOS, its network operating system, and CloudVision, a platform that helps customers manage, automate and monitor network infrastructure.

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Walker Asset Management LLC purchased a new stake in Arista Networks, Inc. (NYSE: ANET) during the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm purchased 5,297 shares of the technology company's stock, valued at approximately $1,078,000. Several other large investors also recently

Arista Networks (ANET - Free Report) closed the most recent trading day at $204.24, moving -3.15% from the previous trading session. This move lagged the S&P 500's daily loss of 0.02%. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.15%.

Shares of the cloud networking company have appreciated by 12.28% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.58%, and the S&P 500's gain of 2.05%.

Investors will be eagerly watching for the performance of Arista Networks in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 3, 2026. The company is predicted to post an EPS of $1.08, indicating a 44% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.31 billion, up 43.51% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.12 per share and a revenue of $12.63 billion, signifying shifts of +38.26% and +40.3%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Right now, Arista Networks possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 51.24. This signifies a premium in comparison to the average Forward P/E of 20.7 for its industry.

It is also worth noting that ANET currently has a PEG ratio of 2.25. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.19 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Perpetual Ltd raised its holdings in shares of Arista Networks, Inc. (NYSE:ANET – Free Report) by 964.3% in the 3rd quarter, according to its most recent 13F filing with the SEC. The fund owned 153,149 shares of the technology company’s stock after acquiring an additional 138,759 shares during the period. Perpetual Ltd’s holdings in Arista Networks were worth $31,180,000 at the end of the most recent reporting period.

A number of other large investors also recently made changes to their positions in the stock. JGP Wealth Management LLC bought a new position in Arista Networks during the 3rd quarter worth approximately $255,000. RTD Financial Advisors Inc. bought a new position in shares of Arista Networks during the third quarter worth $358,000. Gallagher Capital Advisors LLC bought a new position in shares of Arista Networks during the third quarter worth $3,256,000. Armstrong Advisory Group Inc. grew its holdings in shares of Arista Networks by 23.8% in the 3rd quarter. Armstrong Advisory Group Inc. now owns 1,550 shares of the technology company’s stock valued at $316,000 after buying an additional 298 shares during the period. Finally, Marquette Asset Management LLC increased its position in shares of Arista Networks by 10,000.0% in the 3rd quarter. Marquette Asset Management LLC now owns 1,414 shares of the technology company’s stock valued at $288,000 after buying an additional 1,400 shares in the last quarter. Institutional investors and hedge funds own 82.47% of the company’s stock.

Insiders Place Their Bets
In other Arista Networks news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $203.30, for a total transaction of $60,990,000.00. Following the completion of the transaction, the insider owned 181,143,048 shares in the company, valued at approximately $36,826,381,658.40. This represents a 0.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 767,029 shares of Arista Networks stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $201.22, for a total value of $154,341,575.38. Following the completion of the sale, the chief executive officer directly owned 16,387,981 shares in the company, valued at $3,297,589,536.82. This represents a 4.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 3,468,906 shares of company stock valued at $706,366,437. Company insiders own 2.70% of the company’s stock.

Analyst Ratings Changes
ANET has been the topic of several research analyst reports. Piper Sandler reaffirmed an “overweight” rating and set a $240.00 price objective (up from $181.00) on shares of Arista Networks in a research note on Wednesday, August 5th. Rosenblatt Securities boosted their target price on Arista Networks from $210.00 to $280.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Wells Fargo & Company reissued an “overweight” rating and issued a $255.00 target price (up from $200.00) on shares of Arista Networks in a research note on Wednesday, August 5th. Needham & Company LLC restated a “buy” rating and issued a $260.00 price target (up from $200.00) on shares of Arista Networks in a report on Wednesday, August 5th. Finally, Erste Group Bank raised Arista Networks from a “hold” rating to a “buy” rating in a research report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $235.45.
Get Our Latest Report on ANET

Arista Networks Stock Down 2.8%
Arista Networks stock opened at $210.72 on Tuesday. The stock has a market capitalization of $265.76 billion, a PE ratio of 66.47, a price-to-earnings-growth ratio of 2.52 and a beta of 1.60. Arista Networks, Inc. has a twelve month low of $114.52 and a twelve month high of $217.41. The company has a 50 day moving average of $198.62 and a 200-day moving average of $172.87.

Arista Networks (NYSE:ANET – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The technology company reported $1.02 EPS for the quarter, topping analysts’ consensus estimates of $0.89 by $0.13. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The business had revenue of $3.04 billion for the quarter, compared to analyst estimates of $2.83 billion. During the same period last year, the business posted $0.73 earnings per share. The firm’s quarterly revenue was up 37.7% on a year-over-year basis. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. Equities analysts anticipate that Arista Networks, Inc. will post 3.78 EPS for the current fiscal year.

(Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, campus environments and high-performance computing applications. Its products include Ethernet switches, routers, wireless access points and related networking equipment designed to support cloud computing, artificial intelligence, enterprise and service-provider networks.

The company’s software portfolio includes Arista EOS, its network operating system, and CloudVision, a platform that helps customers manage, automate and monitor network infrastructure.

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Want to see what other hedge funds are holding ANET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arista Networks, Inc. (NYSE:ANET – Free Report).

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Arista Networks (ANET - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Arista Networks is one of 619 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Arista Networks is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ANET's full-year earnings has moved 15.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ANET has gained about 65.4% so far this year. In comparison, Computer and Technology companies have returned an average of 23.7%. This means that Arista Networks is performing better than its sector in terms of year-to-date returns.

One other Computer and Technology stock that has outperformed the sector so far this year is Methode (MEI - Free Report) . The stock is up 134.2% year-to-date.

The consensus estimate for Methode's current year EPS has increased 14.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Arista Networks belongs to the Internet - Software industry, a group that includes 178 individual stocks and currently sits at #94 in the Zacks Industry Rank. On average, stocks in this group have gained 9.8% this year, meaning that ANET is performing better in terms of year-to-date returns.

Methode, however, belongs to the Electronics - Connectors industry. Currently, this 2-stock industry is ranked #28. The industry has moved +29.2% so far this year.

Investors with an interest in Computer and Technology stocks should continue to track Arista Networks and Methode. These stocks will be looking to continue their solid performance.

Apella Capital LLC grew its position in Arista Networks, Inc. (NYSE:ANET – Free Report) by 584.9% during the 3rd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 10,383 shares of the technology company’s stock after purchasing an additional 8,867 shares during the period. Apella Capital LLC’s holdings in Arista Networks were worth $2,114,000 as of its most recent filing with the SEC.

Several other large investors have also made changes to their positions in ANET. Main Street Group LTD acquired a new position in Arista Networks in the first quarter worth $26,000. Sankala Group LLC bought a new stake in shares of Arista Networks during the fourth quarter worth $27,000. ABS Investment Management LLC acquired a new stake in shares of Arista Networks in the second quarter valued at $29,000. ABS Direct Equity Fund LLC acquired a new stake in shares of Arista Networks in the second quarter valued at $29,000. Finally, Hilton Head Capital Partners LLC raised its holdings in shares of Arista Networks by 184.9% in the first quarter. Hilton Head Capital Partners LLC now owns 245 shares of the technology company’s stock valued at $30,000 after buying an additional 159 shares during the last quarter. Institutional investors own 82.47% of the company’s stock.

Arista Networks Stock Up 2.7% Shares of NYSE:ANET opened at $216.63 on Friday. Arista Networks, Inc. has a 12-month low of $114.52 and a 12-month high of $217.41. The company’s 50 day moving average price is $198.12 and its two-hundred day moving average price is $172.05. The firm has a market cap of $273.22 billion, a PE ratio of 68.34, a PEG ratio of 2.48 and a beta of 1.60.

Arista Networks (NYSE:ANET – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.13. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%. The business had revenue of $3.04 billion during the quarter, compared to analysts’ expectations of $2.83 billion. During the same period in the previous year, the company posted $0.73 earnings per share. The firm’s revenue for the quarter was up 37.7% compared to the same quarter last year. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, research analysts expect that Arista Networks, Inc. will post 3.74 EPS for the current year. Insider Activity at Arista Networks In other news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $203.30, for a total transaction of $60,990,000.00. Following the completion of the sale, the insider owned 181,143,048 shares of the company’s stock, valued at approximately $36,826,381,658.40. This represents a 0.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 767,029 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $201.22, for a total transaction of $154,341,575.38. Following the sale, the chief executive officer owned 16,387,981 shares in the company, valued at $3,297,589,536.82. This represents a 4.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 3,468,906 shares of company stock valued at $706,366,437 over the last 90 days. Corporate insiders own 2.70% of the company’s stock.

Wall Street Analyst Weigh In Several research analysts recently issued reports on ANET shares. Piper Sandler reiterated an “overweight” rating and set a $240.00 price target (up from $181.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Needham & Company LLC reaffirmed a “buy” rating and issued a $260.00 target price (up from $200.00) on shares of Arista Networks in a research note on Wednesday, August 5th. Morgan Stanley reiterated an “overweight” rating and set a $220.00 target price (up from $190.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Citigroup reissued a “buy” rating and set a $248.00 price target (up from $215.00) on shares of Arista Networks in a research note on Thursday. Finally, Weiss Ratings cut shares of Arista Networks from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $235.45.

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

Positive Sentiment: The rack-scale launch could broaden Arista’s addressable market as hyperscalers seek flexible, interoperable Ethernet alternatives for AI clusters. Can Arista’s New Rack-Scale Ethernet Solutions for AI Stoke Growth? Positive Sentiment: Investor commentary continues to identify ANET as a potential beneficiary of the AI infrastructure boom, with growing Ethernet demand from large cloud customers supporting the bullish outlook. Arista Networks Could Be a Key Winner From the AI Infrastructure Boom Positive Sentiment: Arista’s strong fundamentals reinforce the growth narrative: recent revenue rose 37.7% year over year to $3.04 billion, while quarterly EPS of $1.02 exceeded the $0.89 consensus estimate. Management has raised its 2026 sales outlook three times, citing AI customers. Neutral Sentiment: Options-market commentary describes the stock as being in a bullish trend and highlights spread trades for investors seeking shorter-term exposure, but this reflects trading sentiment rather than a change in Arista’s fundamentals. Arista Networks Stock In A Bull Trend Offers Spread Trade With A Fast Return Negative Sentiment: Valuation remains a key risk. Arista trades at roughly 66 times earnings versus about 21 times for the S&P 500, leaving the stock vulnerable if AI-related growth slows, customer concentration weighs on results or margins come under pressure. Arista Stock Rises 64.7% YTD: Is There More Upside Ahead? Negative Sentiment: CEO Jayshree Ullal sold 460,374 shares worth approximately $97.6 million, while CFO Chantelle Breithaupt sold 1,224 shares. Both transactions were made under pre-arranged Rule 10b5-1 plans, reducing their significance as discretionary bearish signals but still adding selling pressure. Arista Networks Profile (Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, campus environments and high-performance computing applications. Its products include Ethernet switches, routers, wireless access points and related networking equipment designed to support cloud computing, artificial intelligence, enterprise and service-provider networks.

The company’s software portfolio includes Arista EOS, its network operating system, and CloudVision, a platform that helps customers manage, automate and monitor network infrastructure.

Featured Stories Five stocks we like better than Arista Networks Alphabet Introduces Gemini Agent—Can It Trigger a Breakout? Palantir’s Rally Puts Wall Street in Catch-Up Mode Ahead of November Earnings Tilray Finds a Path to Growth Without Waiting on U.S. Cannabis Reform Arista Networks Plugs Into All-Time Highs

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Arista Networks Today

$216.17 +5.20 (+2.47%)

As of 11:24 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$114.52▼

$217.3268.06

$235.45

Investors looking for the next phase of artificial intelligence (AI) infrastructure growth may want to look beyond semiconductor sector designers and examine the networking backbone tying the compute together. Arista Networks NYSE: ANET recently hit an all-time high of about $217, capping a year-to-date climb of around 61%.

This price action reflects a shift in how hyperscalers approach data center architecture. Cloud providers are actively seeking alternatives to single-vendor systems that lock them into specific hardware ecosystems.

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By partnering with compute leaders to develop vendor-agnostic network switches, Arista is capturing a growing share of the spending allocated to expand computing power and networking capacity in their data centers.

Unlocking the Rack: Ethernet's AI EvolutionThe driver behind Arista's recent breakout was the launch of an open Ethernet rack-scale portfolio custom-built for high-density networking workloads. Engineered alongside a consortium that includes Advanced Micro Devices NASDAQ: AMD, Broadcom NASDAQ: AVGO, Meta Platforms NASDAQ: META, and Microsoft NASDAQ: MSFT, this hardware rollout targets the physical constraints of modern data centers.

The launch's centerpiece is the Etherlink SU-144, an architecture that connects up to 144 accelerators in a single-hop network. This system can also scale to connect about 1,024 accelerators across multiple racks. By integrating 7060EX7 switches with liquid cooling and next-generation optics, this setup pushes rack capacity to approximately 6.5 petabits per second.

For data center operators, this translates to an estimated 50% reduction in physical footprint. Less space and thermal output let operators pack more computational power into existing facilities. This footprint reduction is critical as artificial intelligence models grow larger and more complex, demanding higher power density per square foot.

Short-Circuiting the InfiniBand MonopolyFor the past few years, proprietary interconnects like NVIDIA NASDAQ: NVDA InfiniBand have largely dominated AI networking. While highly effective, these closed systems create vendor lock-in, forcing cloud providers to source both compute and networking hardware from the same supplier to ensure compatibility.

The industry is pushing back. Hyperscalers are actively funding and adopting open standards to regain leverage and diversify their supply chains, and Arista is serving as a vehicle for this capital rotation.

By leaning into the Ethernet for Scale-up Networks initiative and the Ultra Ethernet Consortium, Arista offers a standardized alternative that lets cloud operators mix and match hardware from different manufacturers. The Ultra Ethernet Consortium is specifically designed to tune Ethernet protocols for the unique data loads of model training and inference. These tasks were previously thought to require bespoke networking hardware. Meta and Microsoft's involvement in the recent product launch validates that demand for interoperability is coming directly from the world's largest buyers of technology infrastructure.

Routing Revenue: Margins and MultiplesCapturing market share is only half the equation. Converting that share into profitable growth is what justifies multiple expansion. Arista reported revenue of about $3.04 billion in its most recent quarter, up about 37.7% year over year. Earnings per share came in at $1.02, beating consensus estimates and showing the company's ability to scale operations efficiently.

The balance sheet adds another layer of stability. Arista holds about $13.3 billion in cash and cash equivalents and has near-zero debt. This capital structure provides flexibility for research and development without the risks associated with leverage. The firm also generated a return on equity of nearly 31%, indicating efficient use of shareholder capital.

Looking ahead, management raised forward guidance, projecting roughly $3.3 billion in revenue and earnings per share between $1.06 and $1.08 for the upcoming quarter. This guidance signals that data center spending is accelerating rather than plateauing.

Investors evaluating Arista will notice a trailing price-to-earnings ratio of about 67. While that figure appears stretched in isolation, the price-to-earnings growth ratio sits at a defensible 2.53. For an infrastructure provider generating around 38% net margins and nearly 40% top-line growth, this premium multiple aligns with the expanding total addressable market for backend networks.

Institutional Capital Plugs Into Arista88th Percentile

Moderate Buy

9.5% Upside

Healthy

N/A

1.07 Selling Shares

23.53%

See Full Analysis

When a stock trades near all-time highs, insider trading activity often draws scrutiny. Recent filings show that CEO Jayshree Ullal and founder Andreas Bechtolsheim sold portions of their holdings, along with additional selling by directors.

While large distributions can signal a lack of executive conviction, context matters. These sales were executed through pre-arranged Rule 10b5-1 trading plans. Given Arista's unleveraged balance sheet and the fact that these executives still maintain large positions in the stock after the sales, these moves reflect standard portfolio diversification rather than a warning sign.

On the institutional side, capital continues to flow into Arista. Funds like Confluence Investment Management and MassMutual Private Wealth recently accumulated shares, indicating that large asset managers see a sustained runway for the open Ethernet thesis.

Wall Street analysts maintain a consensus moderate Buy rating, with recent price target upgrades reflecting confidence in Arista's execution path. By analyzing institutional fund flows, investors can see a broader consensus forming around the long-term viability of vendor-agnostic infrastructure.

Wiring the Next Decade of AI GrowthThe transition from proprietary compute islands to open, interoperable data centers is a multi-year trend. Arista is dismantling closed networking monopolies by giving hyperscalers what they require: raw bandwidth and hardware flexibility. The partnership with AMD and other technology heavyweights positions Arista to capture a significant wave of infrastructure spending over the coming quarters.

As artificial intelligence models grow more complex, the physical constraints of power, thermal management, and cross-rack communication will only increase. Investors reviewing their technology allocations might consider adding Arista Networks to their watchlists as the rollout of the Etherlink portfolio begins to be reflected in upcoming earnings reports. Those with a longer time horizon could find its debt-free balance sheet and expanding margins a compelling counterbalance to the higher volatility often seen in pure-play semiconductor equities.

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HWG Holdings LP purchased a new position in shares of Arista Networks, Inc. (NYSE:ANET – Free Report) during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 18,117 shares of the technology company’s stock, valued at approximately $3,688,000. Arista Networks makes up about 0.9% of HWG Holdings LP’s investment portfolio, making the stock its 29th biggest holding.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Applied Capital LLC FL bought a new position in Arista Networks during the third quarter worth about $6,005,000. Dominguez Wealth Management Solutions Inc. bought a new stake in shares of Arista Networks in the third quarter worth about $773,000. Elevation Wealth Partners LLC increased its holdings in shares of Arista Networks by 386.7% in the third quarter. Elevation Wealth Partners LLC now owns 1,431 shares of the technology company’s stock worth $291,000 after acquiring an additional 1,137 shares in the last quarter. Retirement Wealth Solutions LLC raised its position in shares of Arista Networks by 890.0% during the third quarter. Retirement Wealth Solutions LLC now owns 297 shares of the technology company’s stock worth $60,000 after purchasing an additional 267 shares during the period. Finally, Cooper Financial Group raised its position in shares of Arista Networks by 36.6% during the third quarter. Cooper Financial Group now owns 17,084 shares of the technology company’s stock worth $3,478,000 after purchasing an additional 4,576 shares during the period. Institutional investors and hedge funds own 82.47% of the company’s stock.

Arista Networks Stock Performance NYSE:ANET opened at $215.71 on Thursday. The stock has a 50-day simple moving average of $196.59 and a 200 day simple moving average of $171.18. Arista Networks, Inc. has a 52-week low of $114.52 and a 52-week high of $217.32. The company has a market cap of $272.06 billion, a PE ratio of 68.05, a PEG ratio of 2.53 and a beta of 1.60.

Arista Networks (NYSE:ANET – Get Free Report) last released its earnings results on Tuesday, August 4th. The technology company reported $1.02 EPS for the quarter, beating the consensus estimate of $0.89 by $0.13. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%.The firm had revenue of $3.04 billion for the quarter, compared to analysts’ expectations of $2.83 billion. During the same quarter in the previous year, the business posted $0.73 EPS. The business’s quarterly revenue was up 37.7% compared to the same quarter last year. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, research analysts predict that Arista Networks, Inc. will post 3.74 earnings per share for the current fiscal year. Key Stories Impacting Arista Networks Here are the key news stories impacting Arista Networks this week:

Positive Sentiment: Arista announced an open Ethernet rack-scale portfolio designed for high-density, scale-up and scale-out AI infrastructure. The liquid-cooled solutions use open standards and were developed with partners including AMD, Arm, Broadcom, Meta, Microsoft and Qualcomm, strengthening Arista’s positioning in the fast-growing AI data-center networking market. Arista Announces Rack-Scale Architectures for Scale-Up and Scale-Out AI Fabrics Positive Sentiment: ClearBridge Investments highlighted Arista as an AI infrastructure company with solid execution, a clearer path to AI monetization and raised guidance. The commentary suggests investors are favoring Arista over some higher-momentum semiconductor names. Arista Networks Outperforms AI Infrastructure Peers Positive Sentiment: Earlier analyst actions remain supportive: Bernstein initiated coverage at Outperform, while the broader analyst consensus is Buy with a $231.70 target. Arista’s latest reported quarter also showed strong momentum, including 37.7% year-over-year revenue growth and earnings above expectations. Neutral Sentiment: Arista will report third-quarter 2026 results after the market close on November 3. Investors may be positioning ahead of the release, with attention focused on whether AI-related demand supports the company’s guidance of $1.06-$1.08 in quarterly EPS. Arista Networks Q3 2026 Earnings Date Negative Sentiment: Zacks Research downgraded Arista from Strong Buy to Hold, which may have contributed to profit-taking after the stock’s sharp rally and elevated valuation. Negative Sentiment: A director sold 5,000 shares through a pre-arranged Rule 10b5-1 plan. Although the transaction was scheduled in advance, it adds a modest negative signal for sentiment. Analysts Set New Price Targets Several equities analysts recently issued reports on the company. Erste Group Bank upgraded Arista Networks from a “hold” rating to a “buy” rating in a research report on Wednesday, July 15th. Sanford C. Bernstein assumed coverage on shares of Arista Networks in a research note on Wednesday, September 30th. They issued an “outperform” rating and a $250.00 price target on the stock. Deutsche Bank Aktiengesellschaft started coverage on shares of Arista Networks in a report on Monday, August 31st. They issued a “buy” rating and a $220.00 price target for the company. Jefferies Financial Group set a $250.00 price objective on shares of Arista Networks in a research report on Wednesday, August 5th. Finally, Rosenblatt Securities raised their price objective on shares of Arista Networks from $210.00 to $280.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, Arista Networks has an average rating of “Moderate Buy” and an average target price of $231.70.

Get Our Latest Stock Analysis on ANET

Insiders Place Their Bets In related news, CEO Jayshree Ullal sold 62,622 shares of the firm’s stock in a transaction on Friday, September 25th. The shares were sold at an average price of $211.40, for a total value of $13,238,290.80. Following the completion of the transaction, the chief executive officer owned 4,876,972 shares of the company’s stock, valued at approximately $1,030,991,880.80. This trade represents a 1.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kenneth Duda sold 17,333 shares of Arista Networks stock in a transaction on Monday, September 21st. The shares were sold at an average price of $203.50, for a total transaction of $3,527,265.50. Following the completion of the sale, the insider owned 12,976 shares in the company, valued at $2,640,616. The trade was a 57.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 3,144,894 shares of company stock valued at $631,310,023 over the last 90 days. 2.70% of the stock is currently owned by company insiders.

Arista Networks Company Profile (Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, campus environments and high-performance computing applications. Its products include Ethernet switches, routers, wireless access points and related networking equipment designed to support cloud computing, artificial intelligence, enterprise and service-provider networks.

The company’s software portfolio includes Arista EOS, its network operating system, and CloudVision, a platform that helps customers manage, automate and monitor network infrastructure.

Further Reading Five stocks we like better than Arista Networks Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up Want to see what other hedge funds are holding ANET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arista Networks, Inc. (NYSE:ANET – Free Report).

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Alkeme Wealth LLC purchased a new stake in shares of Arista Networks, Inc. (NYSE:ANET – Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 66,887 shares of the technology company’s stock, valued at approximately $13,618,000. Arista Networks accounts for approximately 4.6% of Alkeme Wealth LLC’s portfolio, making the stock its 3rd biggest holding.

Other large investors have also recently added to or reduced their stakes in the company. Cura Wealth Advisors LLC raised its holdings in shares of Arista Networks by 3.1% during the second quarter. Cura Wealth Advisors LLC now owns 1,748 shares of the technology company’s stock valued at $297,000 after acquiring an additional 52 shares during the period. Madison Wealth Partners Inc raised its holdings in Arista Networks by 2.8% in the 2nd quarter. Madison Wealth Partners Inc now owns 2,179 shares of the technology company’s stock worth $370,000 after acquiring an additional 60 shares during the period. Intrua Financial LLC lifted its position in shares of Arista Networks by 2.7% during the 1st quarter. Intrua Financial LLC now owns 2,307 shares of the technology company’s stock worth $283,000 after purchasing an additional 61 shares during the last quarter. Shepherd Financial Partners LLC boosted its stake in Arista Networks by 1.2% during the 2nd quarter. Shepherd Financial Partners LLC now owns 5,403 shares of the technology company’s stock valued at $918,000 after purchasing an additional 66 shares during the period. Finally, NBT Bank N A NY increased its position in Arista Networks by 37.2% during the first quarter. NBT Bank N A NY now owns 247 shares of the technology company’s stock worth $30,000 after acquiring an additional 67 shares during the period. 82.47% of the stock is currently owned by institutional investors and hedge funds.

Arista Networks Stock Performance Shares of NYSE:ANET opened at $215.71 on Thursday. The business has a fifty day moving average of $196.59 and a 200-day moving average of $171.18. Arista Networks, Inc. has a twelve month low of $114.52 and a twelve month high of $217.32. The firm has a market cap of $272.06 billion, a PE ratio of 68.05, a price-to-earnings-growth ratio of 2.53 and a beta of 1.60.

Arista Networks (NYSE:ANET – Get Free Report) last announced its earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.89 by $0.13. The company had revenue of $3.04 billion for the quarter, compared to analyst estimates of $2.83 billion. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. Arista Networks’s quarterly revenue was up 37.7% on a year-over-year basis. During the same period in the prior year, the business earned $0.73 earnings per share. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, analysts anticipate that Arista Networks, Inc. will post 3.74 EPS for the current fiscal year. Insider Buying and Selling In related news, insider Kenneth Duda sold 17,333 shares of the firm’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $203.50, for a total value of $3,527,265.50. Following the transaction, the insider owned 12,976 shares in the company, valued at $2,640,616. This trade represents a 57.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of Arista Networks stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $198.95, for a total value of $59,685,000.00. Following the completion of the sale, the insider owned 180,543,048 shares of the company’s stock, valued at approximately $35,919,039,399.60. The trade was a 0.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 3,144,894 shares of company stock worth $631,310,023. 2.70% of the stock is currently owned by company insiders.

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

Positive Sentiment: Arista announced an open Ethernet rack-scale portfolio designed for high-density, scale-up and scale-out AI infrastructure. The liquid-cooled solutions use open standards and were developed with partners including AMD, Arm, Broadcom, Meta, Microsoft and Qualcomm, strengthening Arista’s positioning in the fast-growing AI data-center networking market. Arista Announces Rack-Scale Architectures for Scale-Up and Scale-Out AI Fabrics Positive Sentiment: ClearBridge Investments highlighted Arista as an AI infrastructure company with solid execution, a clearer path to AI monetization and raised guidance. The commentary suggests investors are favoring Arista over some higher-momentum semiconductor names. Arista Networks Outperforms AI Infrastructure Peers Positive Sentiment: Earlier analyst actions remain supportive: Bernstein initiated coverage at Outperform, while the broader analyst consensus is Buy with a $231.70 target. Arista’s latest reported quarter also showed strong momentum, including 37.7% year-over-year revenue growth and earnings above expectations. Neutral Sentiment: Arista will report third-quarter 2026 results after the market close on November 3. Investors may be positioning ahead of the release, with attention focused on whether AI-related demand supports the company’s guidance of $1.06-$1.08 in quarterly EPS. Arista Networks Q3 2026 Earnings Date Negative Sentiment: Zacks Research downgraded Arista from Strong Buy to Hold, which may have contributed to profit-taking after the stock’s sharp rally and elevated valuation. Negative Sentiment: A director sold 5,000 shares through a pre-arranged Rule 10b5-1 plan. Although the transaction was scheduled in advance, it adds a modest negative signal for sentiment. Wall Street Analysts Forecast Growth A number of research firms recently weighed in on ANET. Deutsche Bank Aktiengesellschaft initiated coverage on Arista Networks in a research report on Monday, August 31st. They set a “buy” rating and a $220.00 target price on the stock. UBS Group restated a “buy” rating and set a $259.00 price target (up from $187.00) on shares of Arista Networks in a research note on Wednesday, August 5th. Wells Fargo & Company reiterated an “overweight” rating and issued a $255.00 price objective (up from $200.00) on shares of Arista Networks in a research note on Wednesday, August 5th. TD Cowen upped their price target on Arista Networks from $210.00 to $250.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Finally, The Goldman Sachs Group reiterated a “buy” rating and set a $225.00 price objective on shares of Arista Networks in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Arista Networks currently has an average rating of “Moderate Buy” and a consensus price target of $231.70.

Read Our Latest Research Report on ANET

Arista Networks Company Profile (Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, campus environments and high-performance computing applications. Its products include Ethernet switches, routers, wireless access points and related networking equipment designed to support cloud computing, artificial intelligence, enterprise and service-provider networks.

The company’s software portfolio includes Arista EOS, its network operating system, and CloudVision, a platform that helps customers manage, automate and monitor network infrastructure.

Featured Stories Five stocks we like better than Arista Networks Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up Want to see what other hedge funds are holding ANET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arista Networks, Inc. (NYSE:ANET – Free Report).

Receive News & Ratings for Arista Networks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arista Networks and related companies with MarketBeat.com's FREE daily email newsletter.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Arista Networks (NYSE: ANET), a leader in AI fabric networking, today announced its open Ethernet rack-scale portfolio to power high-density scale-up and scale-out AI infrastructure. Engineered in partnership with leading compute technology companies such as AMD, Arm, Broadcom, d-Matrix, Meta, Microsoft, and Qualcomm, see quotes here, this effort leverages the Ethernet for Scale-up Networks (ESUN) initiative. With this set of platforms, Arista extends Ethern.

Arista Networks (ANET - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this cloud networking company have returned +6.8%, compared to the Zacks S&P 500 composite's +0.8% change. During this period, the Zacks Internet - Software industry, which Arista Networks falls in, has gained 8.8%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Arista Networks is expected to post earnings of $1.08 per share for the current quarter, representing a year-over-year change of +44%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $4.08 points to a change of +36.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $5.06 indicates a change of +24% from what Arista Networks is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Arista Networks.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Arista Networks, the consensus sales estimate for the current quarter of $3.31 billion indicates a year-over-year change of +43.5%. For the current and next fiscal years, $12.63 billion and $16 billion estimates indicate +40.3% and +26.7% changes, respectively.

Last Reported Results and Surprise HistoryArista Networks reported revenues of $3.04 billion in the last reported quarter, representing a year-over-year change of +37.7%. EPS of $1.02 for the same period compares with $0.73 a year ago.

Compared to the Zacks Consensus Estimate of $2.83 billion, the reported revenues represent a surprise of +7.14%. The EPS surprise was +14.61%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Arista Networks is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Arista Networks. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Nvidia (NVDA +2.12%) and Advanced Micro Devices (AMD -0.34%) have been some of the top-performing artificial intelligence (AI) stocks due to their chips, but the next winner may be in networking. Data centers require a significant amount of networking cables, and that can position Arista Networks (ANET -0.22%) to outperform both chipmakers during the next year. Here's what makes the stock worth watching.

Image source: Getty Images.

The business model Arista Networks specializes in Ethernet switches, which transport data in, out, and between server racks. Those racks contain the AI chips that process intense workloads and enable AI products and services like ChatGPT. All of Arista's switches run on its proprietary software.

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The neat thing about the software is that it lets Arista's Ethernet switches easily talk to each other and move data more seamlessly across racks and the data center as a whole. Engineers can make changes to thousands of Arista switches simultaneously instead of making changes to individual switches, which was a nightmare in the early 2000s.

Arista sells more switches when customers need to upgrade their data centers to handle more intense workloads. Old ones need to be replaced. Sales also go up when tech giants need to expand their data centers. More chips require more racks, and more racks translate into additional Ethernet switch sales.

It's a huge pain for any data center to switch from Arista to any competitor. That would mean getting rid of all Arista switches and the critical software that links them all together.

Arista's customers have deep pockets Arista leans heavily on a small number of customers, with Microsoft (MSFT +1.48%) accounting for more than one-quarter of the company's 2025 revenue. Although that type of concentration concerns some investors, Arista's high retention rate and good relationship with hyperscalers are important to keep in mind.

With that issue addressed, it's good to look closer at the customer profile. Microsoft is one of the cloud providers that works with Arista Networks. Amazon (AMZN -0.05%), Alphabet (GOOG +1.02%) (GOOGL +0.86%), and Meta Platforms (META +1.90%) are also customers, and all four of these companies pull in billions of dollars in quarterly profit.

Furthermore, all of these customers have committed to spending more money on artificial intelligence. As their efforts scale, they will need to bolster their AI infrastructure, and that includes buying more of Arista's products.

Those hyperscalers also posted double-digit percentage year-over-year revenue growth rates in their most recent quarters. If growth remains strong, these companies will have no problem pouring more money into Arista's coffers. The broader expansion of AI data centers can also result in new customers that improve diversification.

Revenue growth is trending higher The AI tailwind has benefited many companies, including Arista, and it's visible in financial results. Arista delivered 38% year-over-year revenue growth in the second quarter. It has an annualized revenue growth rate of 27% during the past decade, so the current growth rate is a big deal.

Arista's $3 billion in revenue also marked a 12% sequential boost. Arista Chief Executive Officer Jayshree Ullal touted the results while explaining that customers see Arista as the "central nervous system" for AI infrastructure.

It's not just this quarter, either. Arista has $5.1 billion in short-term deferred revenue, which will become realized revenue by the end of the year. It also has $1.8 billion in long-term deferred revenue.

Its revenue growth is also coming from all key regions. North American revenue increased by 36% year over year, with strong gains also posted in the EMEA and APAC regions. U.S. hyperscalers are driving most of the AI expenditures, but more traction in other parts of the world can help Arista sustain elevated revenue growth rates even if the North American market slows.

However, that slowdown scenario is unlikely anytime soon. Grand View Research projects a 31% compound annual growth rate (CAGR) for the AI industry through 2033, and Arista should be able to ride that momentum to new all-time highs.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Arista Networks, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.