TLDR
- Arista Networks stock reached an all-time high of $156.38, up 53.58% over the past year
- The company has a market cap of $196 billion and generated revenue growth of 26%
- Multiple analysts raised price targets, with BofA Securities and Goldman Sachs setting targets at $175
- Goldman Sachs projects 20% revenue growth for 2026 and mid-teens growth through 2029
- Analysts expect Q3 earnings of $0.72 per share and revenue of $2.26 billion, representing year-over-year increases of 20% and 24.73%
Arista Networks stock reached an all-time high of $156.38 on October 8, marking a strong performance for the networking solutions company. The stock has gained 53.58% over the past year.
The company now carries a market cap of $196 billion. Revenue growth came in at 26% for the most recent period.
On Monday, October 6, the stock closed at $149.50, up 2.75% for the day. That outpaced the S&P 500’s gain of 0.37%.
The Nasdaq rose 0.71% that day. The Dow Jones fell 0.14%.
Over the past month, ANET shares climbed 1.86%. The Computer and Technology sector gained 8.04% during the same period.
The S&P 500 rose 4.26% over the month. ANET’s monthly performance lagged both benchmarks.
Analyst Day Sparks Price Target Increases
Following the company’s Analyst Day presentation, several firms raised their price targets. BofA Securities and Goldman Sachs both set new targets at $175.
Both maintained Buy ratings. BofA highlighted the company’s technological capabilities.
Goldman Sachs pointed to the updated financial framework. The bank projects 20% revenue growth for 2026.
From 2026 through 2029, Goldman expects mid-teens percentage growth. Needham increased its target to $160.
The firm cited new Cloud and AI capabilities. These investments aim to compete with Cisco.
UBS maintained its $155 price target with a Buy rating. The firm emphasized positive expectations for calendar year 2026.
Rosenblatt set a $140 price target with a Neutral rating. The firm noted the company’s shift toward cloud integration and power savings strategies.
Earnings Expectations and Valuation Metrics
Analysts expect the company to report third-quarter earnings of $0.72 per share. That represents a 20% increase from the prior-year quarter.
Revenue estimates stand at $2.26 billion for the quarter. That would mark a 24.73% jump from the same period last year.
For the full year, analysts project earnings of $2.81 per share. Revenue is expected to reach $8.78 billion.
These figures represent year-over-year changes of 23.79% and 25.39%. The company currently trades at a Forward P/E ratio of 51.72.
The industry average Forward P/E sits at 30.03. The stock carries a PEG ratio of 2.76.
The Internet-Software industry average PEG ratio is 2.3. The current P/E ratio stands at 60.3.
The company’s financial health score was rated as ‘great’ by analysts. InvestingPro analysis suggests the stock appears slightly overvalued at current levels.
Arista Networks holds a Zacks Rank of #1, which indicates a Strong Buy rating. The Internet-Software industry ranks in the top 26% of all 250+ industries with a Zacks Industry Rank of 63.
