Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com – Arista Networks issued upbeat guidance for the current quarter following better-than-expected second-quarter 2025 results Tuesday, as demand for AI-driven data center networking accelerated.
Shares in Arista (NYSE:ANET) surged more than 15% in early U.S. trading on Wednesday.
For the three months ended June 30, Arista posted adjusted diluted earnings per share of $0.73 on revenue of $2.21 billion, beating analyst expectations for adjusted EPS of $0.65 on revenue of $2.11 billion.
For the third quarter, the company guided revenue of approximately $2.25 billion, adjusted gross margin around 64%, beating analyst estimates for revenue of $2.12 billion.
Arista now expects 25% growth in 2025, up from the previous forecast of 17%, supported by strong momentum across both cloud and non-cloud segments.
Bank of America analysts said Arista demonstrated "strong growth despite persisting white box risks." They lifted their price target on the stock to $155 from $130.
Separately, Morgan Stanley (NYSE:MS) analysts said the second-quarter report "begins to prove out our thesis that as AI investment matures, Ethernet will take share."
"Additionally, as inference grows, front end upgrades will favor Arista. [The] bull case thesis [is] playing out for now, [and the] next catalyst will be [the] newly announced Analyst Day on September 11th," they added.
(Additional reporting by Vahid Karaahmetovic and Scott Kanowsky.)