Arista Networks: Q2 2026 Justifies A Higher Price Target

The Curious Analyst 5.22K Followers Follow Summary I reiterate Arista Networks as a Strong Buy with a raised price target of $248, reflecting a higher earnings base and improved growth visibility. Q2 2026 results showed $3.036B revenue (+37.7% y/y), a 49.9% non-GAAP operating margin, and $1.02 non-GAAP EPS, prompting upward revisions to 2026/2028 EPS estimates. AI Fabrics remains the largest growth driver, but stronger core data center networking, Campus, services, and the upcoming 1.6 Tbps product cycle give ANET a broader earnings path. My revised 2026 non-GAAP EPS estimate increases from $3.50 to $4.08, while my 2028 estimate rises to $5.77. Applying the same 43x FWD non-GAAP P/E gets me to my PT. Customer concentration, margin pressure, and valuation compression remain the main risks. Sundry Photography/iStock Editorial via Getty Images Investment Thesis I am reiterating Arista Networks ( ANET ) as a Strong Buy, while also increasing my price target from $216 to $248 per share following the company's Q2 2026 earnings results This article was written by The Curious Analyst 5.22K Followers Follow My background is in Financial Engineering and I have long since been interested in analyzing strong solid companies with a rare financial Profile. My primary area of specialization is in quantamental analysis, where I use a combination of data driven models and fundamental research. My approach is centered on a structured process that combines top-down screening with bottom-up company specific analysis .I write on to share ideas with a wider audience and also learn more about companies and other analysts. My goal is to make unique ideas & research accessible to retail and professional investors alike, while maintaining analytical depth and a clear investment thesis.Associated with another author Kennedy Njagi Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ANET over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.