/Arista%20Networks%20Inc%20logo%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
Santa Clara, California-based Arista Networks, Inc. (ANET) engages in the development, marketing, and sale of data-driven, client-to-cloud networking solutions for data center, campus, and routing environments. With a market cap of approximately $85 billion, Arista’s operations span across the Americas, Europe, and the Indo-Pacific.
ANET is set to announce its Q1 results after the markets close on Tuesday, May 6. Ahead of the event, analysts expect ANET to report an adjusted EPS of $0.53, up 17.8% from $0.45 reported in the year-ago quarter. Moreover, the company has surpassed Street’s bottom-line estimates in each of the past four quarters.
For the full fiscal 2025, ANET is expected to report an adjusted EPS of $2.21, up 7.3% from $2.06 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to further surge 16.7% year-over-year to $2.58 per share.
ANET stock prices have surged 11.9% over the past 52 weeks, substantially outpacing the Technology Select Sector SPDR Fund’s (XLK) marginal 92 bps dip and the S&P 500 Index’s ($SPX) 5.5% uptick during the same time frame.
Despite beating Street’s earnings and topline expectations, Arista Networks’ stock fell 6.4% and maintained a downturn trajectory for the next three trading sessions after the release of its Q4 results on Feb. 18 evening. Driven by growth in products and services revenues, the company’s overall topline surged 25.3% year-over-year to $1.9 billion, surpassing the consensus estimates by a notable margin. Meanwhile, its adjusted net income increased 25% year-over-year to $830.1 million, exceeding Street estimates.
However, Arista's 2025 revenue guidance fell short of analysts’ projections, and the company faces a potential loss of business from its top customers like Meta (META) and Microsoft (MSFT), which unsettled investor confidence.
The consensus opinion on ANET is cautiously optimistic, with a “Moderate Buy” rating overall. Of the 20 analysts covering the stock, opinions include 13 “Strong Buys,” two “Moderate Buys,” four “Holds,” and one “Strong Sell.” As of writing, the stock is trading substantially below its mean price target of $113.98.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
