Shares of Arista Networks (ANET) jumped about 12% premarket on Friday after fourth quarter results and revenue outlook beat estimates and analysts maintained their bullish views.
BofA kept its Buy rating on Arista and raised the price target on the stock to $185 from $175, citing accelerating momentum in 2026.
Analysts led by Tal Liani said that capital expenditure, or Capex, spending is growing and Arista is a strong AI beneficiary.
“Another strong quarter with 4Q revenue growth of 29% YoY above Street’s 24%, 1Q revenue growth guidance of 30% higher than Street’s 22%, and FY26 revenue growth guidance raised to 25% versus 20% prior. We believe the guidance is still too low and that Arista can grow 30%+ in 2026. The Company continues to benefit from elevated network investments by Hyperscalers and Neocloud providers, with Cloud Titans plus Service Providers and second-tier Cloud contributing 68% of revenues in 2025, and Enterprise the remaining 32%,” the analysts added.
The analysts noted that 2026 growth estimates remain conservative. Removing the expected AI and Campus contributions from the total growth guidance, it suggests no growth for theremaining 60% of the business, below the historical 7%, the analysts added.
Accounting for that growth points to total 2026 growth of at least 30%, with additional Capex increases creating incremental upside, according to the analysts.
Liani and his team said that Microsoft and Meta combined grew 56% and accounted for 42% of Arista’s revenues.
“Reiterate Buy and increase PO to $185 from $175 prior on higher estimates supported by the accelerated momentum,” the analysts added.
Wells Fargo maintained its Overweight rating on Arista and increased the price target on the stock to $185 from $175.
“ANET’s upward CY26 guide justifiably catalyzing shares (+25% y/y; sustainable GM%); providing increased confidence in ANET’s path to >30% y/y growth + $5/sh.+ EPS upside in CY27,” said analysts led by Aaron Rakers.
Related Stocks: Cisco Systems (CSCO) and Astera Labs (ALAB) were largely flat premarket on Friday.