Arista Networks Stock Outlook: Is Wall Street Bullish or Bearish?

Core Viewpoint - Arista Networks, Inc. is a leading provider of high-performance cloud networking solutions, with a market cap of $164 billion, focusing on Ethernet switches, software, and automation platforms for large data centers and enterprise networks [1] Performance Summary - Over the past year, Arista Networks' shares have gained 11.4%, slightly underperforming the S&P 500 Index, which increased by 12.2% [2] - Year-to-date in 2026, ANET stock is down 1.8%, compared to a marginal decline in the S&P 500 Index [2] - ANET has also underperformed the Pacer Data and Digital Revolution ETF, which has gained 15.6% over the past year [3] Recent Developments - On December 10, shares of Arista Networks rose by 1.8% following the announcement of major upgrades to its Cognitive Campus platform, including the launch of Arista VESPA for large-scale WLAN mobility and an expanded AVA agentic AI system [5] - These upgrades emphasize Arista's strategy of delivering a unified, AI-driven network experience across various environments [5] Earnings Expectations - For FY2025, analysts project Arista Networks' EPS to grow by 26.2% to $2.60 on a diluted basis, with a strong earnings surprise history [6] - The consensus among 24 analysts covering ANET stock is a "Strong Buy," supported by 17 "Strong Buy" ratings, two "Moderate Buys," and five "Holds" [6] Analyst Ratings - The configuration of analyst ratings has improved, with 16 analysts previously suggesting a "Strong Buy" rating [7] - On January 6, Arista Networks received an upgrade from Piper Sandler, raising the stock's rating from "Neutral" to "Overweight," and increasing the price target from $145 to $159, indicating a 9.7% upside [7]