Evercore ISI raises Arista Networks stock price target to $150 on AI growth

Published 06/08/2025, 09:12
Evercore ISI raises Arista Networks stock price target to $150 on AI growth

Investing.com - Evercore ISI raised its price target on Arista Networks (NYSE:ANET) to $150.00 from $120.00 on Wednesday, while maintaining an Outperform rating following the company’s strong quarterly results. The new target aligns with InvestingPro’s analysis, which shows ANET has delivered an impressive 46% return over the past year.

Arista Networks reported second-quarter revenue of $2.2 billion and earnings per share of $0.73, exceeding analyst expectations of $2.11 billion and $0.65 respectively. The company achieved 30% year-over-year revenue growth, representing an acceleration of approximately 200 basis points compared to the previous quarter. This performance reflects the company’s robust financial health, with InvestingPro data showing a strong current ratio of 3.93 and excellent gross margins of 64%.

The networking equipment provider raised its full-year 2025 revenue growth guidance to 25% from its previous forecast of 17%, citing strength across three key areas. These include front-end cloud demand as customers refresh infrastructure, artificial intelligence deployments expected to exceed the $1.5 billion target, and enterprise/campus segment growth.

Arista’s gross margins reached 65.6% in the second quarter, up 20 basis points year-over-year despite the significant increase in AI-centric revenues. The company projects operating profit margins of 48% for calendar year 2025.

Product deferred revenue stood at $1.9 billion, representing 265% growth and marking seven consecutive quarters of over 100% growth, which Evercore ISI indicates could support mid-20% or better growth in 2026 and beyond.

In other recent news, Arista Networks announced its second-quarter results for 2025, reporting earnings and revenue that exceeded forecasts. The company achieved an earnings per share (EPS) of $0.73, surpassing the expected $0.65. Additionally, Arista Networks reported revenue of $2.21 billion, which was higher than the anticipated $2.1 billion. These results indicate a strong performance for the quarter. Following the earnings announcement, the company’s stock experienced a slight increase in after-hours trading. These developments reflect positive sentiment among investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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