Update shared on11 Sep 2025
Fair value Increased 1.69%Arista Networks' price target was raised to $142.63 as strong Q2 results, accelerating product billings, and optimism for AI and cloud-driven growth outweighed concerns over a near-term run-up, with analysts seeing upside on pullbacks.
Analyst Commentary
- Bullish analysts cite strong Q2 results, with product billings accelerating above 50% growth at large scale and upside performance across all business metrics.
- Continued strength is seen in the AI segment, cloud refresh cycles to 400/800G, and momentum in enterprise and provider markets.
- Expectations for Cloud Titan revenue to rebound in 2025, particularly from M&M customers, are driving optimism for guidance outperformance.
- Some concern exists that near-term upside may be priced in after a ~36% recent share price run, and initial FY26 company guidance may be conservative, historically coming in below Street expectations.
- Pullbacks are viewed as buying opportunities, underpinned by Arista's positioning in AI, premium valuation potential, and a positive long-term growth outlook.
What's in the News
- Amended bylaws to allow the President role to be held by multiple individuals and updated forum selection provisions in line with changes to Delaware law.
- Completed share repurchases totaling 721,544 shares for $62 million under the 2025 buyback, and an additional 1,678,456 shares for $133.9 million, bringing total repurchases under the 2024 buyback to 12,195,456 shares for $1.2 billion.
- Provided Q3 2025 revenue guidance of $2.25 billion.
- Raised 2025 annual growth target to 25%, with revenue guidance increased to $8.75 billion, citing momentum in AI, cloud, and enterprise segments.
- Announced new AI-driven enterprise products, launched expanded switching and Wi-Fi 7 offerings, introduced new WAN routers, and acquired the VeloCloud SD-WAN portfolio from Broadcom.
Valuation Changes
Summary of Valuation Changes for Arista Networks
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $140.25 to $142.63.
- The Future P/E for Arista Networks remained effectively unchanged, moving only marginally from 40.59x to 41.28x.
- The Consensus Revenue Growth forecasts for Arista Networks remained effectively unchanged, moving only marginally from 19.5% per annum to 19.6% per annum.
Disclaimer
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