Stock (Symbol) |
Arista Networks (ANET) |
Stock Price |
$127 |
Sector |
| Technology |
Data is as of |
| February 23, 2026 |
Expected to Report |
| May 5 |
Company Description |
 Arista Networks is a supplier of cloud networking solutions that use software to address the needs of Internet companies, cloud service providers and enterprises.
The Company cloud networking solutions consist of its Extensible Operating System (EOS), a set of network applications and its Gigabit Ethernet switching and routing platforms. Its cognitive single-tier Spline campus network extends EOS across the campus workspace and the data center. CloudVision, its network-wide approach for workload orchestration and automation, leverages EOS and Cognitive WiFi features, to deliver a workflow orchestration and automation solution for cloud networking to its enterprise customers. It sells its products through both its direct sales force and its channel partners. The Company’s end customers span a range of industries and include large Internet companies, service providers, financial services organizations, government agencies, media and entertainment companies and others. Source: Refinitiv |
Sharek’s Take |
 Arista Networks (ANET), an industry leader in data-driven, client-to-cloud networking continues to see strong AI momentum as demand for AI infrastructure accelerated across cloud and enterprise-sized customers. Management stated demand for AI networking equipment increased quickly, especially for faster 800-gig systems — which gained more than 100 customers in 2025 — and large-scaled AI data centers. This growth is part of Arista 2.0, the company’s strategy to expand beyond traditional data centers into AI centers, campus networks, routing, and subscription software, all connected through its EOS software and CloudVision platform. Management stated Arista 2.0 momentum is clear, placing the company at the center of mission-critical AI networking, and becoming the preferred network innovator of choice. Strong demand for Arista’s AI networking solutions has fueled rapid growth in its backend AI business, scaling from zero revenue in 2022 to hundreds of millions in 2025, and now the company expects AI networking revenue to grow $3.25 billion in 2026.
Arista Networks (ANET) is a maker of superior networking equipment for Generative AI, data centers, cloud computing, and big Enterprise organizations. Arista provides equipment for the back-end of a network (like AI) and the front-end (infrastructure). Gigabit Ethernet switches are the hardware that connects computers and servers in local networks. The faster the Ethernet switch, the faster data is transmitted between the computers and the local networks. Companies are pivoting towards Arista’s high performance and reliable routing, where old routers fall short. Competitors include Cisco Systems and Juniper Networks. Since 2016, ANET has outsold Cisco when it comes to small and large internet firms upgrading Ethernet switches. Arista is witnessing an inflection point in AI networking and expects this trend to continue throughout the decade, with Ethernet emerging as a critical infrastructure across front-end and back-end AI datacenters. The company has three product categories:
Arista has four big customers, referred to as Cloud Titans, which include Meta and Microsoft. During 2024, Cloud Titans contributed 48% of Arista’s revenue, followed by Enterprises at 35%, and providers at 17%. ANET has an Estimated Long-Term Rate of 17% but I think this is a 25% grower. Management also buys back stock. In 2025, ANET repurchased $1.6 billion of stock at an average price of $100.63 per share. ANET is part of the Growth Stock Portfolio and Aggressive Growth Portfolio. It’s a core tech holding for me. |
One Year Chart |
 ANET stock had a strong run in 2025, but over the past few months it has been moving sideways. I like this basing pattern.
The stock has a P/E of 36 when we look ahead to 2026 profit estimates. Last qtr, the stock had a P/E of 39. The Est. LTG of 17%, same with last qtr. Est LTG isn’t high enough in my opinion. This still seems like a 25% profit grower. Profit growth is around 25% a quarter now, which is good. |
Earnings Table |
 Last qtr, Arista delivered 26% profit growth and beat expectations of just 17%. Revenue grew 29%, year-over-year and beat analyst estimates of 24%. Gross margin was 63.4%, compared to 64.2% in year ago period. Operating margin was 47.5% last qtr, compared to 47.0% a year ago.
Annual Profit Estimates increased for the 17th consecutive qtr. For 2026, management expects revenue growth of approximately 25%. Qtrly profit Estimates are for 23%, 16%, 19% and 16% growth the next four qtrs. I wouldn’t worry about slowing growth, ANET keeps upping estimates and beating the street. For next quarter, analysts predict revenue will climb a robust 30%. |
Fair Value |
 ANET is $127 this qtr and has a P/E of 36 when we calculate it using 2026 profit estimates.
My Fair Value is a P/E of 42, or $147 per share, giving the stock around 16% upside. Looking to 2027, my Fair Value is $178 per share, giving the stock upside of 39% for next year. |
Bottom Line |
 Arista Networks (ANET) really seems to have the best computer networking equipment in the market. Management says its a best of breed company. I owned this stock in the past, and sold it at a low point in the 2019 decline. Looking back, I sold ~$12 after the company lowered guidance. I bought back in March 2022 at around $34.
Arista is the perfect company for this new generation of computing. It’s makes performance equipment for four thriving verticals: Gen AI, data center, cloud computing, and Enterprise campuses. ANET moves up from 21st to 10th the Growth Stock Portfolio Power Rankings. 2026 upside has risen from 7% to 16% since last qtr. The stock moves from 17th to 11th in the Aggressive Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
10 of 28Aggressive Growth Portfolio 11 of 17Conservative Stock Portfolio N/A |
