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Investing.com - Goldman Sachs has reiterated its Buy rating and $155.00 price target on Arista Networks (NYSE:ANET) following the company’s strong second-quarter performance. According to InvestingPro data, the stock currently trades at $118.12, with analysts’ targets ranging from $82 to $150, reflecting mixed views on the company’s current valuation metrics.
Arista Networks reported second-quarter earnings per share of $0.73, exceeding both Goldman Sachs and FactSet consensus estimates of $0.65, with revenue of $2.20 billion surpassing the consensus and guidance of $2.1 billion. The company maintains strong financial health, earning a "GREAT" rating from InvestingPro, with impressive metrics including a 64% gross profit margin and robust return on equity of 34%.
The company has upgraded its fiscal year 2025 revenue growth guidance by $560 million to 25% year-over-year growth, compared to its previous projection of 17%, reflecting the quarterly beat of approximately $100 million, raised enterprise campus expectations of about $50 million, and momentum across AI, classic cloud, and enterprise segments totaling roughly $400 million.
Arista Networks now expects to deliver over $1.5 billion in AI networking revenue in 2025 across four major AI Titan projects at various deployment stages, as well as 25-30 large enterprise and neocloud AI projects, up from 15 projects reported last quarter.
The company has also raised its fiscal year 2025 EBIT margin outlook by 450 basis points to 48%, compared to previous guidance of 43-44%, and announced plans to host an Analyst Day event on September 11, 2025, where it will share more details on its AI strategy and forecasts. For deeper insights into Arista Networks’ AI potential and comprehensive financial analysis, access the detailed Pro Research Report available exclusively on InvestingPro, along with 15+ additional ProTips and advanced valuation metrics.
In other recent news, Arista Networks reported robust second-quarter results for 2025, with both earnings and revenue surpassing expectations. The company posted earnings per share of $0.73, exceeding the forecast of $0.65, and reported revenue of $2.21 billion, surpassing the anticipated $2.1 billion. This performance reflects a 30% year-over-year revenue growth, marking an acceleration of approximately 200 basis points compared to the previous quarter. Following these strong quarterly results, Evercore ISI raised its price target for Arista Networks to $150 from $120, maintaining an Outperform rating. The firm’s decision was influenced by the company’s growth in the AI sector. These developments indicate a positive outlook from analysts regarding Arista Networks’ future performance.
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