Arista Networks (NYSE:ANET) Stock Price Up 4.9% After Strong Earnings

Shares of Arista Networks, Inc. (NYSE:ANET) rose 4.9% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $188.53 and last traded at $178.24. 18,549,581 shares changed hands during trading, an increase of 136% from the average daily volume of 7,864,422 shares. The stock had previously closed at $169.91.

The technology company reported $1.20 EPS for the quarter, topping the consensus estimate of $1.08 by $0.12. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The company had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.33 billion. During the same quarter last year, the firm posted $0.75 EPS. The firm’s revenue was up 58.5% compared to the same quarter last year.

Trending Headlines about Arista Networks

Here are the key news stories impacting Arista Networks this week:

• Positive Sentiment: Arista reported third-quarter revenue of $3.66 billion, up 58.5% year over year, and EPS of $1.20—both above analysts’ estimates. Management also raised its 2026 outlook and gave a 2027 revenue target of about $18.5 billion, including roughly $7 billion from AI fabrics. Article: ANET Q3 Earnings Beat Estimates on Strong AI and Enterprise Demand
• Positive Sentiment: Fourth-quarter guidance came in well above expectations, while management cited strong AI and enterprise demand and improved supply efficiency. These factors suggest growth may continue as data-center investment expands. Article: Arista Networks’ Demand Strength, Supply Efficiency Help Lift Revenue Outlook
• Positive Sentiment: Several analysts raised their targets while maintaining bullish ratings: JPMorgan lifted its target to $270, Piper Sandler to $261, and Truist to $240. JPMorgan analyst ratings
• Neutral Sentiment: Major shareholder Andreas Bechtolsheim sold 267,892 shares, about 0.15% of his holdings. The sale was made under a pre-arranged trading plan, and he still retained a substantial stake. Article: Major Shareholder Sale
• Negative Sentiment: Barclays cut its price target to $236, although it kept an “overweight” rating. Commentary also flagged lower gross margin as product sales grew, and investors are watching supplier capacity and deferred-revenue trends as the company pursues its AI targets. Barclays analyst ratings

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Piper Sandler raised their target price on shares of Arista Networks from $240.00 to $261.00 and gave the stock an “overweight” rating in a research report on Wednesday. Evercore reiterated an “outperform” rating on shares of Arista Networks in a report on Monday. TD Cowen dropped their price objective on Arista Networks from $250.00 to $205.00 and set a “buy” rating on the stock in a research note on Monday, October 19th. Morgan Stanley reissued an “overweight” rating and issued a $230.00 price objective (up from $220.00) on shares of Arista Networks in a research note on Wednesday. Finally, BNP Paribas Exane upgraded Arista Networks to a “strong-buy” rating in a report on Wednesday, October 14th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of $240.24.

Insider Transactions at Arista Networks

In other news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the business’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $198.95, for a total value of $59,685,000.00. Following the completion of the sale, the insider owned 180,543,048 shares in the company, valued at approximately $35,919,039,399.60. The trade was a 0.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 573,509 shares of the company’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $208.13, for a total transaction of $119,364,428.17. Following the completion of the sale, the chief executive officer directly owned 25,000 shares of the company’s stock, valued at $5,203,250. The trade was a 95.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 2,487,846 shares of company stock worth $503,417,253 in the last three months. Insiders own 2.70% of the company’s stock.

Institutional Trading of Arista Networks

A number of hedge funds have recently bought and sold shares of ANET. Cura Wealth Advisors LLC boosted its position in Arista Networks by 3.1% during the second quarter. Cura Wealth Advisors LLC now owns 1,748 shares of the technology company’s stock valued at $297,000 after purchasing an additional 52 shares in the last quarter. Affinity Capital Advisors LLC raised its holdings in Arista Networks by 1.4% in the third quarter. Affinity Capital Advisors LLC now owns 3,770 shares of the technology company’s stock worth $817,000 after purchasing an additional 53 shares in the last quarter. Global Assets Advisory LLC raised its holdings in Arista Networks by 0.9% in the third quarter. Global Assets Advisory LLC now owns 6,352 shares of the technology company’s stock worth $1,318,000 after purchasing an additional 57 shares in the last quarter. Madison Wealth Partners Inc lifted its position in shares of Arista Networks by 2.8% during the second quarter. Madison Wealth Partners Inc now owns 2,179 shares of the technology company’s stock valued at $370,000 after buying an additional 60 shares during the last quarter. Finally, Richardson Financial Services Inc. lifted its position in shares of Arista Networks by 3.2% during the third quarter. Richardson Financial Services Inc. now owns 1,912 shares of the technology company’s stock valued at $389,000 after buying an additional 60 shares during the last quarter. Hedge funds and other institutional investors own 82.47% of the company’s stock.

Arista Networks Stock Up 4.9%

The firm has a market capitalization of $224.80 billion, a PE ratio of 56.23, a price-to-earnings-growth ratio of 1.91 and a beta of 1.61. The company’s 50-day simple moving average is $194.30 and its 200 day simple moving average is $165.10.

Arista Networks Company Profile

Arista Networks, Inc develops and sells cloud networking solutions for data centers, cloud service providers, enterprises and specialized computing environments. The company’s products are designed to support high-performance, scalable and automated networks used for cloud computing, artificial intelligence, data analytics and other demanding applications.

Arista’s portfolio includes data center and campus switches, routing platforms, wireless networking products, network operating software and network management tools.