Arista Networks (ANET) Down 23.5% Since Fiscal Q3 2025

Core Viewpoint - Arista Networks Inc. has experienced a significant decline in stock price despite reporting strong fiscal Q3 2025 earnings, leading to cautious investor sentiment [1]. Financial Performance - Revenue for the quarter increased by 27.46% year-over-year, reaching $2.31 billion, which exceeded expectations by $41.76 million [2]. - Earnings per share (EPS) was reported at $0.75, surpassing estimates by $0.04 [2]. - Management forecasts Q4 2025 revenue to be between $2.3 billion and $2.4 billion, indicating modest growth expectations [2]. Market Sentiment - Wall Street's opinions on Arista Networks are mixed; Mizuho Securities raised the price target from $172 to $176 while maintaining a Buy rating [3]. - Conversely, Erste Group downgraded the stock from Buy to Hold without providing a price target [3]. Strategic Insights - Analyst Engel highlighted the company's efforts to create a cross-vendor ecosystem integrating AI networks with computing infrastructure, which presents medium-term revenue growth opportunities, albeit at a slowing pace [4]. - There are expectations for a slight dip in operating margins next year [4]. Company Overview - Arista Networks Inc. specializes in data-driven networking solutions for large data centers, campus environments, and cloud computing [5].