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Arista Networks, Inc. (ANET), valued at a market cap of $149.2 billion, is a leading provider of networking solutions specializing in high-performance, software-driven cloud networking for large-scale data centers, enterprise environments, and high-frequency trading. Headquartered in Santa Clara, California, the company designs and sells innovative network switches, routers, and software platforms, leveraging its highly programmable Extensible Operating System (EOS).
Shares of this networking solution behemoth have outperformed the broader market considerably over the past year. ANET has gained a whopping 70.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. In 2025 alone, ANET stock is up 8.8%, surpassing SPX’s 3.1% rise on a YTD basis.
Zooming in further, ANET has also outpaced the First Trust Cloud Computing ETF (SKYY). The exchange-traded fund has gained about 35.3% over the past year.
Arista Networks has surpassed the broader market’s performance over the past year, driven by surging demand for AI-focused data center equipment, with projected AI-related revenue of $750 million by 2025. The company also announced a four-for-one stock split recently, enhancing share affordability and liquidity, which was well-received by investors.
However, following its Q3 earnings report on November 7, shares fell over 7% as its fiscal 2025 revenue growth forecast of 15% to 17% fell short of the 18% consensus. Despite this, Arista delivered strong Q3 results, with adjusted earnings of $2.40 per share, exceeding analysts’ expectations of $2.09, and revenue of $1.81 billion, surpassing forecasts of $1.76 billion.
Ahead of its fiscal 2024 earnings release next week, analysts expect ANET’s EPS to grow 28.8% to $1.97 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 19 analysts covering ANET stock, the consensus is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buys,” four “Holds,” and one “Strong Sell.”
This configuration has been reasonably consistent over the past months.
On Jan. 17, The Goldman Sachs Group, Inc. (GS) maintained a "Buy" rating on Arista Networks with a price target of $135, which is also the Street-high price target, highlighting the stock’s strong position in the AI networking sector. Analysts project over 20% revenue growth for 2024 and 25% for 2025, driven by Arista's dominance in AI networking and expanding cloud capital expenditures.
ANET currently trades above its mean price target of $115.98.
