Arista Networks to Announce Q1 Results with Strong Earnings Expectations

Arista Networks, Inc. (ANET), based in Santa Clara, California, is focused on developing, marketing, and selling data-driven networking solutions for data centers, campuses, and routing environments. The company holds a market capitalization of approximately $85 billion, and its operations extend throughout the Americas, Europe, and the Indo-Pacific region.

Investors are preparing for the upcoming Q1 results announcement, scheduled for after the market closes on Tuesday, May 6. Analysts anticipate that ANET will report an adjusted EPS of $0.53, reflecting a 17.8% increase from the $0.45 reported in the same quarter last year. Notably, Arista has consistently exceeded the Street’s bottom-line expectations for the past four quarters.

Fiscal Year Projections

For the entire fiscal year 2025, ANET is projected to report an adjusted EPS of $2.21, which represents a 7.3% increase compared to the $2.06 reported in fiscal 2024. Furthermore, forecasts for fiscal 2026 predict a significant rise of 16.7% year-over-year, projecting earnings at $2.58 per share.

Stock Performance Overview

ANET stock has experienced an 11.9% gain over the past 52 weeks, significantly outperforming the Technology Select Sector SPDR Fund (XLK), which saw a slight 92 basis points decline, and the S&P 500 Index ($SPX), which increased by 5.5% during the same period.

Despite exceeding earnings and revenue expectations, Arista Networks’ stock saw a 6.4% decline following its Q4 results announcement on February 18. The company’s topline grew by 25.3% year-over-year, reaching $1.9 billion, significantly outpacing consensus estimates. Additionally, its adjusted net income increased 25% year-over-year to $830.1 million, again surpassing market expectations.

However, concerns arose when Arista’s 2025 revenue guidance fell short of analyst forecasts. The potential for lost business from major clients like Meta (META) and Microsoft (MSFT) has contributed to a dip in investor confidence.

Analyst Recommendations

The overall consensus on ANET stock is cautiously optimistic, currently rated as a “Moderate Buy.” Among the 20 analysts covering the stock, the recommendations include 13 “Strong Buys,” two “Moderate Buys,” four “Holds,” and one “Strong Sell.” At present, the stock trades notably below its average price target of $113.98.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.