Arista Networks Inc (NYSE:ANET) is one of the best NYSE stocks to buy for the long term. Arista Networks Inc (NYSE:ANET) reported strong fourth‑quarter results on February 12, with earnings and revenue beating expectations. Adjusted EPS came in at $0.82 versus $0.76 expected, while revenue rose to $2.49 billion, up 29% year‑over‑year. Arista Networks Inc (ANET) Strengthens Position in AI Networking CEO Jayshree Ullal said 2025 validated the company’s “Arista 2.0” strategy, highlighting growth in AI netwo ...

MADRID--(BUSINESS WIRE)--The Riyadh Air Metropolitano Stadium, home of Atlético de Madrid, is advancing its technological transformation with the implementation of a new intelligent, self-driving network infrastructure based on HPE Networking solutions. The project, divided into two phases over the 2025/26 and 2026/27 seasons, completely modernizes the stadium's communications system and marks the beginning of a new era in the digitalization of sports infrastructures in Europe. The new network. ...

Core Insights - Cisco Systems raised its quarterly dividend to $0.42 per share, reflecting confidence in its role in AI infrastructure development [1] - Despite surpassing Q2 earnings estimates, Cisco's stock dropped nearly 12% due to gross margin pressure and guidance that only met current-quarter estimates [2] - Cisco is positioned to benefit from a significant technology shift, with hyperscalers ordering billions in networking equipment for AI data centers [2] Dividend Metrics - The increase in the quarterly dividend to $0.42 represents a commitment to return at least 50% of free cash flow to shareholders annually [3] - Cisco returned $3 billion to shareholders in Q2 through dividends and buybacks, with an annualized dividend payout of $1.68 per share, resulting in a forward yield of 2.2% [3][7] - Cisco's annual dividend expense is approximately $6.63 billion, with projected free cash flow of $13.64 billion in fiscal 2026, indicating a payout ratio of 48.60% [4] Financial Performance - In Q2 of fiscal 2026, Cisco's revenue increased by 10% year-over-year to $15.3 billion, and earnings per share rose by 11% to $1.04 [8] - The company expects AI infrastructure orders to exceed $5 billion in fiscal 2026, up from a previous estimate of $4 billion, with hyperscalers ordering $2.1 billion in AI gear during the quarter [8] - Cisco's capital returns in Q2 amounted to $3 billion, with $1.6 billion in dividends and $1.4 billion in buybacks, and year-to-date returns totaling $6.6 billion [9]

Core Insights - The conversation at the Cisco AI Summit highlighted the transformation from explicit programming to implicit programming, emphasizing the need for companies to adapt to AI technologies and integrate them into their processes [4][5][15]. Group 1: AI Transformation - The shift from explicit programming to implicit programming allows computers to understand intentions and solve problems autonomously, marking a significant change in computing paradigms [4][5]. - Companies should assume that computational power is infinite and act accordingly to tackle their most impactful challenges [4][5]. - The ROI of new technologies is often difficult to quantify initially, and companies should encourage experimentation in a safe environment to foster innovation [4][16][17]. Group 2: AI Integration in Business - Companies must integrate AI into their workflows rather than treating it merely as a tool, as this will enhance organizational knowledge and efficiency [4][45]. - The concept of "AI in the loop" is proposed as a more effective approach than "Human in the loop," suggesting that AI should be embedded in processes to continuously improve company value [45]. Group 3: Future of Computing - The computing stack is being reinvented, with a focus on creating a new architecture that combines AI capabilities with networking and security [15][42]. - The advancements in AI are leading to a "bounty" of intelligence, where tasks that previously took a year can now be completed in a day, fundamentally changing decision-making processes [20][39]. Group 4: Industry Opportunities - The potential for AI to enhance labor and create new opportunities is significant, with the IT industry poised to tap into a much larger economic scale [39]. - Companies are encouraged to leverage their domain expertise and understanding of customer needs, as this is where true value lies, rather than focusing solely on coding [40].

Core Insights - Nvidia's stock fell nearly 3% while AMD's stock rose close to 1% following comments from Arista Networks' CEO about a shift in deployment preferences towards AMD [1][2] - Arista Networks reported that approximately 20% to 25% of its deployments are now utilizing AMD as the preferred accelerator, a significant change from a year ago when it was predominantly Nvidia [2] - Nvidia currently holds about 90% of the AI chip market, but faces increasing competition from AMD and Google, which is gaining traction with its tensor processing units [3] Company Developments - Arista Networks plays a crucial role in AI infrastructure by providing Ethernet switching technology that connects powerful chips [4] - AMD has partnered with Arista to create customized AI clusters for training and inference, indicating a strategic collaboration in the AI space [4] - Nvidia has reduced its reliance on Arista's technology by developing its own networking solutions, which has impacted Arista's stock negatively [5] Market Dynamics - Nvidia's launch of the Spectrum-X Ethernet platform in 2023 has contributed to a decline in Arista's stock value, which lost more than half its value following this development [6] - Despite the challenges, Arista's stock rebounded with a 19% increase last year and is currently up 6% in 2026 [6] - Analysts note that while Arista's diversification is necessary, being integrated with Nvidia has historically been beneficial for the company [6]

Cisco logo centered in a blue-lit data center aisle with glowing server racks, representing AI networking growth. Key Points Cisco is well-positioned to benefit from a multi-year tech refresh cycle. AI underpins the need for newer, faster, more efficient networking and connectivity solutions. Analysts and institutions support this market: dividends, distribution growth, and buybacks attract buy-and-hold investors. Interested in Cisco Systems, Inc.? Here are five stocks we like better. It is a bold ...

Core Insights - Arista Networks has reported strong earnings, leading to a significant increase in its stock price by 6% [1][2][4] - The company surpassed earnings expectations with an EPS of 82 cents compared to estimates of 76 cents, and revenue of approximately $2.5 billion, exceeding the consensus of $2.38 billion [4][5] - Analysts are overwhelmingly bullish on Arista Networks, with multiple price target increases following the earnings report and a raised revenue growth outlook for 2026 from 20% to 25% [5][7][8] Financial Performance - Arista Networks achieved a quarterly net income milestone of over $1 billion, which was highlighted by the CFO during the earnings call [4] - The company’s first-quarter revenue guidance is set at $2.6 billion, surpassing the consensus estimate of $2.44 billion [5] Analyst Reactions - Piper Sandler raised its price target for Arista Networks from $159 to $175, maintaining an overweight rating due to the larger-than-anticipated earnings beat and strong guidance [7] - Key Bank increased its target from $170 to $178, also keeping an overweight rating, citing the company's potential benefits from AI and expansion into new verticals [7] - Bank of America maintained a buy rating with a new price target of $185, suggesting that growth estimates may be conservative and indicating potential for higher growth in 2026 [8]

Core Insights - Arista Networks, Inc. (ANET) reported strong fourth-quarter 2025 results, with revenues and adjusted earnings significantly increasing year over year, driven by robust demand trends and innovative product launches [1] Financial Performance - GAAP net income for the quarter rose to $955.8 million or 75 cents per share, up from $801 million or 62 cents per share in the previous year [2] - Non-GAAP net income reached a record high of $1.05 billion or 82 cents per share, compared to $849.6 million or 66 cents per share in the year-ago quarter, beating the Zacks Consensus Estimate by 7 cents [2] - For the full year 2025, GAAP earnings were $3.51 billion or $2.75 per share, an increase from $2.85 billion or $2.23 per share in 2024 [3] Revenue Growth - Quarterly revenues surged to $2.49 billion from $1.93 billion in the prior-year quarter, exceeding the consensus estimate of $2.37 billion [4] - Total revenues for 2025 increased to $9.01 billion from $7 billion in 2024, driven by strong demand across the product portfolio [4] Product and Service Performance - Net quarterly sales from products totaled $2.09 billion, up from $1.61 billion in the year-ago quarter, while service revenues increased to $392.1 million from $322.3 million [5] - The Americas contributed approximately 79% to total revenues, with international revenues making up the remainder [6] Profitability Metrics - Non-GAAP gross profit rose to $1.58 billion with respective margins of 63.4% and 64.2%, although the margin declined year over year due to a higher mix of sales to cloud and AI Titan customers [7] - Total operating expenses increased to $530.9 million from $431.4 million in the year-ago quarter, but operating income rose to $1.03 billion from $799.6 million [8] Future Outlook - For Q1 2026, management expects revenues to be approximately $2.6 billion, with a projected 25% revenue growth for 2026 [9][11] - Non-GAAP gross margin is expected to be between 62-63% and non-GAAP operating margin around 46% for Q1 2026 [11] Cash Flow and Liquidity - In 2025, Arista generated $4.37 billion of net cash from operating activities, compared to $3.71 billion in 2024 [10] - As of December 31, 2025, the company had $1.96 billion in cash and cash equivalents [10]

Economic Indicators - The U.S. consumer price index rose by 0.2 percent in January, lower than the expected 0.3 percent increase, following a 0.3 percent rise in December [2][20] - The annual growth rate of consumer prices slowed to 2.4 percent in January from 2.7 percent in December, below the anticipated 2.5 percent [2][20] - Core consumer prices, excluding food and energy, increased by 0.3 percent in January, matching expectations, while the annual growth rate dipped to 2.5 percent from 2.6 percent [3][21] Stock Market Reactions - Major U.S. stock indices experienced a sell-off, with the Nasdaq dropping 469.32 points (2.0 percent), the S&P 500 falling 108.71 points (1.6 percent), and the Dow declining 669.42 points (1.3 percent) [5] - The sell-off was partly driven by concerns regarding the impact of artificial intelligence on various industries, including financial, transportation, logistics, and commercial real estate [6][8] - Cisco Systems saw a significant drop of 12.3 percent after reporting better-than-expected fiscal second-quarter results but providing disappointing guidance for the current quarter [6] Sector Performance - The NYSE Arca Networking Index fell by 3.0 percent, influenced by Cisco's performance [7] - Gold stocks experienced substantial weakness, with the NYSE Arca Gold Bugs Index declining by 6.9 percent due to a drop in gold prices [7] - Transportation stocks also faced significant declines, with the Dow Jones Transportation Index plunging by 4.0 percent amid AI concerns [7] International Market Impact - Asian stocks followed Wall Street lower, with concerns over AI's impact on various sectors influencing investor sentiment [12] - European stocks showed mixed results, with the French CAC 40 Index down by 0.3 percent, while the U.K.'s FTSE 100 Index and the German DAX Index rose by 0.1 percent and 0.3 percent, respectively [18]

Arista Networks stock was gaining following earnings which suggested it might be handling supply-chain pressures better than peer Cisco Systems. ...