Erste Group Bank Forecasts Arista Networks FY2026 Earnings

Arista Networks, Inc. (NYSE:ANET) – Investment analysts at Erste Group Bank lifted their FY2026 earnings per share estimates for Arista Networks in a research note issued on Thursday, October 8th. Erste Group Bank analyst H. Engel now expects that the technology company will earn $3.79 per share for the year, up from their prior estimate of $3.78. Erste Group Bank has a “Buy” rating on the stock. The consensus estimate for Arista Networks’ current full-year earnings is $3.79 per share. Erste Group Bank also issued estimates for Arista Networks’ FY2027 earnings at $4.74 EPS.

Several other research analysts have also issued reports on the stock. Needham & Company LLC reiterated a “buy” rating and issued a $260.00 price target (up from $200.00) on shares of Arista Networks in a research note on Wednesday, August 5th. Evercore reissued an “outperform” rating on shares of Arista Networks in a research note on Wednesday, October 7th. Wells Fargo & Company reissued an “overweight” rating and set 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 objective 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, Bank of America restated a “buy” rating and issued a $240.00 price objective (up from $200.00) 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 issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $235.45.

Arista Networks Price Performance

NYSE:ANET opened at $195.11 on Tuesday. The firm’s 50-day moving average price is $198.83 and its 200-day moving average price is $173.87. The company has a market capitalization of $246.07 billion, a PE ratio of 61.55, a P/E/G ratio of 2.38 and a beta of 1.60. Arista Networks has a 1-year low of $114.52 and a 1-year high of $217.41.

Arista Networks (NYSE:ANET) last announced its quarterly earnings data 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 business had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.83 billion. During the same quarter last year, the firm posted $0.73 earnings per share. 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.

Insider Activity

In related news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the company’s stock in a transaction dated 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 transaction, the insider owned 181,143,048 shares in the company, valued at $36,826,381,658.40. The trade was a 0.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at 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 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. In the last ninety days, insiders sold 3,627,449 shares of company stock valued at $740,784,723. 2.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Main Street Group LTD purchased a new position in shares of Arista Networks in the first quarter worth $26,000. Sankala Group LLC bought a new position in shares of Arista Networks during the fourth quarter valued at $27,000. ABS Investment Management LLC bought a new position in shares of Arista Networks during the second quarter valued at $29,000. ABS Direct Equity Fund LLC bought a new position in shares of Arista Networks during the second quarter valued at $29,000. Finally, Hilton Head Capital Partners LLC boosted its position in shares of Arista Networks by 184.9% during 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.

Key Stories Impacting Arista Networks

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 reinforces the company’s position in AI networking and could expand its addressable market. Arista Networks Stock Dropped, What Is Behind the Fresh Attention?
• Positive Sentiment: Erste Group Bank modestly raised its FY2026 EPS estimate to $3.79 from $3.78 and its FY2027 forecast to $4.74 from $4.73, while maintaining a Buy rating. The revisions suggest continued confidence in Arista’s earnings growth.
• Positive Sentiment: A separate report said Arista’s revenue outlook was raised for the third time this year and non-cancellable purchase commitments climbed 2.7 times to $9.7 billion. If accurate, the commitments provide stronger visibility into future demand. Arista Networks Prospects and Earnings
• Neutral Sentiment: Arista’s previous quarterly results exceeded expectations, with revenue up 37.7% year over year and EPS of $1.02 versus the $0.89 consensus. However, the stock trades at a high earnings multiple, leaving less room for disappointment.
• Negative Sentiment: CEO Jayshree Ullal sold 130,553 shares for approximately $28.3 million and another 27,990 shares for about $6.1 million. Both transactions were executed under a pre-arranged Rule 10b5-1 plan, and Ullal still owns roughly 4.8 million shares, which reduces—but does not eliminate—the negative signal from the sales.
• Negative Sentiment: The stock recently declined more than the broader market after gaining about 58% year to date and reaching near its 52-week high. The move appears consistent with profit-taking and valuation concerns rather than a reported deterioration in Arista’s business outlook. Arista Networks Registers a Bigger Fall Than the Market

Arista Networks Company Profile

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.