Arista Networks Inc (ANET) Strengthens Position in AI Networking

Arista Networks Inc (NYSE:ANET) is one of the best NYSE stocks to buy for the long term. Arista Networks Inc (NYSE:ANET) reported strong fourth‑quarter results on February 12, with earnings and revenue beating expectations. Adjusted EPS came in at $0.82 versus $0.76 expected, while revenue rose to $2.49 billion, up 29% year‑over‑year.

CEO Jayshree Ullal said 2025 validated the company’s “Arista 2.0” strategy, highlighting growth in AI networking and campus expansion, with full‑year revenue reaching $9 billion. Profitability stayed solid, though margins eased slightly.

GAAP net income rose to $956 million from $801 million a year earlier, and non‑GAAP net income topped $1 billion for the first time. CFO Chantelle Breithaupt noted strong operating leverage, with a non‑GAAP operating margin of 47.5%.

Looking ahead, Arista guided Q1 2026 revenue to about $2.6 billion, above consensus, and expects margins to remain healthy. Following these results, on February 13, Needham raised its price target to $185 while keeping a Buy rating, citing stronger guidance and growth in AI revenue, which was lifted to $3.25 billion. Deferred revenue also surged, suggesting upside to estimates.

Separately, on February 13, Piper Sandler raised its price target on Arista Networks (NYSE:ANET) to $175 from $159 while keeping an Overweight rating. The firm pointed to Arista’s stronger annual growth forecast of 25% and rising demand from cloud and AI customers. It also noted higher purchase commitments for chips and memory, showing the company’s focus on securing supply as it positions itself to benefit from growing AI investment.

Arista Networks Inc (NYSE:ANET) is an American cloud and AI networking solutions provider. Among other products, it sells network switches used in large datacenters and other high-performance computing environments.

While we acknowledge the potential of ANET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.