Arista Rallies On Strong Q2 Beat, Bullish Analysts Praise $10 Billion Revenue Goal In 2026

Shares of Arista Networks Inc ANET rallied in early trading on Wednesday, after the company Tuesday reported upbeat second-quarter results.

Here are some key analyst takeaways for the cloud networking company:

Goldman Sachs analyst Michael Ng maintained a Buy rating, while raising the price target from $115 to $155.
KeyBanc analyst Brandon Nispel reaffirmed an Overweight rating, while lifting the price target from $115 to $145.

Check out other analyst stock ratings.

Goldman Sachs: Arista Networks reported second-quarter revenues of $2.2 billion and earnings of 73 cents per share, beating consensus of $2.10 billion and 65 cents per share, respectively, Ng said in a note. The company generated strong gross margins, "driven by efficient inventory management and minimal tariff impact," he added.

Management raised their full-year revenue growth guidance to 25%, the analyst stated. The 450 basis point increase in the 2025 EBIT margin outlook "highlights ANET’s value-add in the networking stack despite an increasingly competitive AI networking market," he further wrote.

KeyBanc Capital Markets: Arista Networks' revenues grew 30.4% year-on-year in the quarter and gross margins came in well ahead of the guidance, Nispel said. The quarterly results "demonstrated AI demand, expanding opportunity from the NeoClouds, and traction in the Enterprise/Campus market," he wrote.

Management guided to third-quarter revenue, gross margin, and operating margin of $2.25 billion, 64%, and 47%, ahead of consensus of $2.14 billion, 63.1%, and 46.2%, respectively, the analyst stated. Arista Networks expects to cross $10 billion in revenue in 2026, which is a sign of improved momentum and visibility, he added.

ANET Price Action: Shares of Arista Networks had risen by 17.36% to $138.72 at the time of publication on Wednesday.

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