Arista Networks, Inc. (NYSE:ANET) shares are trading higher Friday after the company reported better-than-expected fourth-quarter financial results and issued first-quarter sales guidance above estimates on Thursday after the market closed.
- Arista Networks shares are climbing with conviction. What’s fueling ANET momentum?
Fourth-Quarter Performance And Outlook
Arista reported adjusted earnings per share of 82 cents, beating the consensus estimate of 76 cents. In addition, the company reported revenue of $2.48 billion, beating the consensus estimate of $2.38 billion.
“Our Q4 results underscore the strong operating leverage inherent in our model, providing a powerful exit rate as we head into 2026,” said Chantelle Breithaupt, Arista’s CFO.
“By pairing 29% revenue growth with a disciplined 47.5% operating margin, Arista achieved a historic milestone: surpassing $1 billion in quarterly net income. Congratulations to the team.”
During the quarter, Arista unveiled its R4 series platforms for AI, data center and routed backbone deployments and expanded Arista AVA with additional agentic AI capabilities for multi-domain event correlation, continuous monitoring and network troubleshooting.
Looking ahead, Arista sees first-quarter revenue of $2.60 billion, versus the consensus estimate of $2.44 billion.
Consensus Ratings And Analyst Action
Arista carries a consensus rating of Buy and holds a consensus price target of $216.26. Following the earnings report, multiple analysts issued price target adjustments:
- Needham analyst Ryan Koontz maintained a Buy rating on Arista and raised the price target from $165 to $185.
- Keybanc analyst Brandon Nispel maintained an Overweight rating on Arista and raised the price target from $170 to $178.
Bullish Trend With Conflicting Momentum Signals
Arista Networks is currently trading 6.5% above its 20-day simple moving average (SMA) and 10.7% above its 50-day SMA, indicating strong short-term momentum. Shares have increased 23.12% over the past 12 months and are currently positioned closer to their 52-week highs than lows, suggesting a robust long-term trend.
The RSI is at 48.99, which is considered neutral territory, while MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum, reflecting some uncertainty in the stock’s immediate outlook.
- Key Support: $125.50
- Key Resistance: $152.00
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Arista Networks, highlighting its strengths and weaknesses compared to the broader market:
- Value: 9.57 — The stock is considered overvalued relative to peers.
- Growth: 80.56 — Indicates strong growth potential.
- Quality: 88.02 — Reflects a solid balance sheet and operational efficiency.
- Momentum: 60.9 — Suggests moderate momentum in the stock’s price action.
The Verdict: Arista’s Benzinga Edge signal reveals a company with strong growth and quality metrics, although its value score indicates it may be trading at a premium. Investors should consider the momentum score as a sign of potential price stability, but remain cautious of the high valuation relative to peers.
Arista Shares Climb Higher
ANET Price Action: At the time of publication, Arista shares are trading 7.33% higher at $145.02, according to data from Benzinga Pro.
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