Arista Networks Blows Out Earnings and Rises While Most AI Suppliers Fall After Midterms – 24

Arista Networks (ANET) shares rose 5.7% to $179.59 after reporting Q3 revenue of $3.66B, beating estimates. Non-GAAP EPS was $1.20, also exceeding forecasts. The company guided Q4 revenue to $3.90B-$4.00B and 2027 revenue growth of 38%-40%. Arista is held in some tech ETFs like XLK and FTEC but not in AI-focused funds like AIQ or QQQ.

Arista Networks (NYSE:ANET) received upgraded estimates from Bank of America after its 2027 growth outlook surpassed Wall Street expectations. The broker maintained a 'buy' rating and $240 price target. Management projected 39% revenue growth in 2027, higher than the 28% consensus, driven by AI revenue doubling to $7 billion and 60% campus growth. However, deferred revenue growth slowed, with a $86 million decline in product deferred revenue in Q3.

Arista Networks (ANET) reported Q3 FY2026 revenue of $3.66B, beating estimates by $330M and growing 58.5% YoY. EPS of $1.20 also beat expectations. Management guided FY2027 growth of 38–40% and raised FY2026 guidance to $13.3B. Gross and operating margins were 62.9% and 49.1%, respectively. AI-related revenue is expected to double by 2027. The stock is trading at $178.56, up 5.09% from the previous close.

Arista Networks expects $18.5B revenue in fiscal 2027, up 38-40%, driven by AI networking demand. It targets $7B in AI fabrics and notes over 100 Etherlink customers.

Arista Networks (ANET) shares rose 5.10% after projecting Q4 revenue of $3.9B-$4B, up 8% sequentially. Q3 revenue hit $3.66B, beating estimates by 11% and up 58.5% YoY. Management expects Q4 adjusted margins of 48%-49% and EPS of $1.26-$1.30. GuruFocus notes a 100 GF Score but a 21.61% drop from highs.

Piper Sandler kept its Overweight rating on Arista Networks (ANET) and raised its price target to $261 from $240, citing a 53.6% upside from the Nov 3 close. Recent analyst price targets for ANET range from $230 to $280.