Arista Networks Analysts Evaluate 25% Q4 Growth Against Lower-Than-Expected Annual Guidance

Shares of Arista Networks Inc ANET were trading lower on Wednesday, despite the company reporting upbeat fourth-quarter results.

The results came in amid an exciting earnings season. Here are some key analyst takeaways.

Piper Sandler On Arista Networks

Analyst James Fish reiterated a Neutral rating while lifting the price target from $106 to $108.

Arista Networks reported sales of $1.93 billion, up 25% year-on-year and beating Street expectations by 1.5%, Fish said in a note. The upside was driven by Services, while product billings decelerated to 20%, he added.

CATs (Cloud & AI Titans) represented 48% of full-year revenues, the analyst stated. "Expectations have been coming down post-DeepSeek and competitor reports, but valuation still leaves us on the sidelines as we prefer other infrastructure names at this point," he further wrote.

Check out other analyst stock ratings.

Needham On Arista Networks

Analyst Ryan Koontz reaffirmed a Buy rating and price target of $145.

Arista Networks delivered "another strong quarter," with outperformance across the board and operating margins remaining above 46% for the sixth consecutive quarter, Koontz said. Revenues generated by the company's Cloud Titan segment, which now includes Oracle Corp ORC, grew by 33% year-on-year, he added.

Although management raised their full-year revenue growth guidance to 17%, it was below consensus of 19.4%, the analyst stated. "While networking spend is likely decreasing as a % of total cloud capex, we are confident a major win at Google is included in its AI backend wins," he further wrote.

ANET Price Action: Shares of Arista Networks had declined by 6.05% to $104.41 at the time of publication on Wednesday.

Read More:

• David Tepper’s Appaloosa Revamps Portfolio, Cuts Down On Semiconductor Stocks

Photo: Shutterstock