Update shared on26 Sep 2025
Fair value Increased 9.64%Analysts have raised Arista Networks’ price target, now $156.38 (up from $142.63), driven by confidence in stronger long-term revenue growth and continued outperformance in AI and cloud infrastructure, although near-term caution remains due to margin normalization and recent share price strength.
Analyst Commentary
- Bullish analysts are raising price targets due to Arista's upwardly revised 2026 revenue outlook (about 20% growth to $10.5B) and company guidance for sustained mid-teens long-term sales growth, along with robust gross and EBIT margins.
- Confidence in Arista’s leadership position in high-speed (100G and above) Ethernet networking and continuing outperformance in AI-related infrastructure is supporting higher valuations.
- Broad-based momentum across product lines, ongoing strength in AI and cloud infrastructure refresh cycles (notably 400G/800G), and accelerated enterprise demand are cited as key drivers for analyst optimism.
- Some bearish analysts express tempered enthusiasm due to a guided margin decline in 2026 and beyond (EBIT margin expected to normalize to 43–45% vs. 47%+ in prior years) and concerns over the company’s historically conservative guidance approach.
- After a significant recent share price rally, certain analysts believe near-term upside is limited and expect initial 2026 Street estimates to reset lower, though they remain constructive on Arista’s long-term positioning and would view share weakness as a buying opportunity.
What's in the News
- Arista Networks amended bylaws to allow for multiple Presidents and updated its forum selection provisions in line with changes to Delaware law.
- The company completed two buyback tranches, repurchasing a total of 2,400,000 shares for approximately $196 million; to date, it has repurchased 12.2 million shares for $1.2 billion under its May 2024 program.
- Raised 2025 annual revenue growth guidance to 25%, targeting $8.75 billion, citing strong AI, cloud, and enterprise sector momentum.
- Issued Q3 2025 revenue guidance of $2.25 billion.
- Announced new AI-driven products, acquired VeloCloud SD-WAN from Broadcom, and expanded its portfolio with new WAN routers, switches, and Wi-Fi 7 access points for diverse enterprise and edge deployments.
Valuation Changes
Summary of Valuation Changes for Arista Networks
- The Consensus Analyst Price Target has risen from $142.63 to $156.38.
- The Future P/E for Arista Networks has risen from 41.28x to 44.78x.
- The Consensus Revenue Growth forecasts for Arista Networks has risen slightly from 19.6% per annum to 20.6% per annum.
Disclaimer
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