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ANET · Analysis updated Nov 4, 2026, 9:01 AM ET
Why is Arista Networks (ANET) stock moving?
Arista reported a Q3 beat. Revenue was $3.66B (+58.5% year over year) against about $3.33B expected, and adjusted EPS was $1.20 against $1.08. Q4 guidance of $3.9-4.0B in revenue and $1.26-1.30 in EPS is well above consensus. Full-year 2026 revenue guidance rose to $13.3B, and management gave an early 2027 growth outlook of about 39%. The stock closed Nov 3 at $169.91, up 3.5% on heavy volume, and had been up about 10% in extended trading. Analysts responded with target increases from UBS ($291), Melius ($305) and Morgan Stanley ($230), plus reiterated Buy ratings from Needham ($260) and Rosenblatt ($280). The average target of about $233-245 is well above the price. Wells Fargo trimmed its target to $245 on supply timing, which is a small caution. Shares fell about 9% over the past week and about 22% from the Oct 9 high of $217.41, so the quarter largely relieved a de-rating. Risks remain. Valuation is about 54x trailing earnings, beta is about 1.6, growth is expected to slow, and supply timing could matter. The $185-190 area, where the stock traded in late October, is the next hurdle, and $163-165 is the recent low.
News behind the analysis
- Arista Networks Stock Pops on Q3 Earnings Beat, Strong Q4 GuidanceQ3 adjusted EPS was $1.20 against $1.08 expected, and revenue was $3.66B against $3.33B. Q4 guidance of $3.9-4.0B in revenue is well above the $3.6B estimate.
- Arista Networks, Inc. Reports Third Quarter 2026 Financial ResultsRevenue was about $3.66B, up 58.5% year over year. That is the fastest growth since the IPO. Arista also launched open rack-scale AI architectures with partners.
- Earnings call transcript: Arista Networks tops Q3 2026 estimates, shares jumpManagement raised 2026 revenue guidance for the fourth time this year, to $13.3B, which is 48% growth. Net income was $1.53B.
- Arista Networks (NYSE:ANET) Q3 Beat and Above-Consensus Guidance Drive After-Hours RallyShares had lost more than a fifth of their value over four weeks before the print. The beat and guidance removed fears of a demand air pocket or guidance reset, though growth is expected to slow.
- ANET Stock Soars as Arista's AI Growth Drives Q3 BeatShares were up about 10% in premarket trading. Rosenblatt reiterated Buy with a $280 target, citing very strong AI infrastructure demand.
- Needham reiterates Buy on Arista Networks stock on strong resultsNeedham kept its $260 target. Arista gave initial 2027 revenue guidance of about 39% growth and is gaining share in AI back-end networking at accounts including Anthropic, Google and Oracle.
- UBS raises Arista Networks stock price target on strong AI demandUBS raised its target to $291 from $259 and kept a Buy rating. It cited materially higher EPS estimates.
- Morgan Stanley raises Arista Networks price target on TAM expansionMorgan Stanley raised its target to $230 from $220 and kept Overweight. Wells Fargo trimmed its target to $245 from $255.
- Melius raises Arista Networks stock price target on strong growthMelius raised its target to $305 from $275 and kept Buy. It called the 39% growth guide for next year conservative.
- Arista Networks (ANET) Q3 2026 Earnings Beat Boosts Shares 5%Trailing P/E is about 53.6x, above the 5-year median of 43.2x. Q4 operating margin guidance is 48-49%.