Arista Rallies On Strong Q2 Beat, Bullish Analysts Praise $10 Billion Revenue Goal In 2026

Core Insights - Arista Networks Inc reported strong second-quarter results, with revenues of $2.2 billion and earnings of 73 cents per share, surpassing consensus estimates of $2.10 billion and 65 cents per share [1] - The company raised its full-year revenue growth guidance to 25% and highlighted a 450 basis point increase in the 2025 EBIT margin outlook, indicating strong value in the networking stack despite competition in the AI networking market [2] - Revenues grew 30.4% year-on-year, with gross margins exceeding guidance, reflecting strong demand driven by AI and opportunities in the NeoClouds and Enterprise/Campus markets [3] Financial Guidance - Management provided guidance for third-quarter revenue of $2.25 billion, gross margin of 64%, and operating margin of 47%, all above consensus estimates [4] - Arista Networks anticipates crossing $10 billion in revenue by 2026, indicating improved momentum and visibility [4] Analyst Ratings - Goldman Sachs maintained a Buy rating and raised the price target from $115 to $155 [5] - KeyBanc reaffirmed an Overweight rating and increased the price target from $115 to $145 [5]