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2w ago

Arista Networks Tops Q2 Estimates, Lifts 2025 Growth Target to 25%

Surging orders from Microsoft and Meta underpinned the beat, sparking multiple price-target increases.

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Overview

  • Arista’s Q2 revenue rose 30% year-on-year to $2.205 billion, surpassing consensus by nearly $100 million with adjusted EPS of $0.73 versus $0.65 expected.
  • The company boosted its 2025 revenue growth target to 25% from 17% and forecasted Q3 sales of about $2.25 billion at midpoint versus $2.12 billion consensus.
  • It reaffirmed $1.5 billion in AI-related revenue for 2025 from front-end and back-end Ethernet switches while downplaying any material impact from recent tariffs.
  • Shares surged over 12% in early trading as analysts at UBS, KeyBanc, Melius Research and Piper Sandler raised price targets into the $143–$160 range.
  • Arista confirmed an investor day on September 11 to outline its AI-driven networking strategy and product roadmap, including its recent VeloCloud acquisition.