Arista Networks surges 15% on strong second-quarter results, upbeat guidance

Published 06/08/2025, 09:34
Updated 06/08/2025, 14:54
© Reuters.

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.)

 

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