With a market cap of $129.8 billion, Arista Networks Inc (ANET) is a leading provider of data-driven cloud networking solutions for AI, data centers, campus, and routing environments across global markets. Its offerings, centered around the Linux-based Extensible Operating System (EOS), include high-performance Ethernet switches, cognitive software, and integrated support services designed to power modern cloud infrastructures.
The Santa Clara, California-based company is slated to announce its fiscal Q2 2025 earnings results on Tuesday, Jul. 29. Ahead of this event, analysts expect Arista Networks to report an EPS of $0.59, a 25.5% increase from $0.47 in the year-ago quarter. It has exceeded Wall Street's earnings expectations in the past four quarters.
For fiscal 2025, analysts expect the cloud networking company to report EPS of $2.32, marking a growth of 12.6% from $2.06 in fiscal 2024. Moreover, EPS is projected to rise 15.1% year-over-year to $2.67 in fiscal 2026.
Shares of Arista Networks have gained 13.4% over the past 52 weeks, outpacing the broader S&P 500 Index's ($SPX) 11.7% return and the Technology Select Sector SPDR Fund's (XLK) 9.7% rise over the same period.
Despite reporting better-than-expected Q1 2025 results, with revenue up 28% to $2 billion and adjusted EPS rising 30% to $0.65, Arista Networks saw its shares fall 4.8% the next day. The company projected Q2 revenue of $2.1 billion, only slightly above Q1 and lower than bullish investor expectations, while also signaling slight declines in gross and operating margins from Q1 levels. Investors, already concerned about ANET’s underwhelming stock performance in 2025, likely viewed the margin compression and tepid top-line outlook as overshadowing strong quarterly results and record $787 million in stock buybacks.
Analysts' consensus view on Arista Networks stock remains cautiously optimistic, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 15 recommend a “Strong Buy,” two “Moderate Buys,” and seven “Holds.” As of writing, the stock is trading below the average analyst price target of $111.15.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
