Evercore ISI has reiterated an Outperform rating and maintained a $200.00 price target on Arista Networks (NYSE:ANET) after participating in a webinar with company executives. The price objective sits within the wider analyst range - spanning $140 to $220 - that reflects market confidence in Arista’s trajectory in AI infrastructure.
Raised AI revenue target
During the briefing, Arista said it raised its fiscal 2026 AI revenue target to $3.25 billion, up from $2.75 billion. Management attributed the revision to better visibility on in-year deal closings and conversions that had previously been deferred.
The company linked the increase to broad demand for scale-out deployments and called out the 7800R4 router as an incremental contributor to the AI revenue uptick.
Comments on Meta and NVIDIA announcement
Arista told analysts that a recent announcement involving Meta and NVIDIA does not affect its calendar year 2026 guidance. Management emphasized that Spectrum-X is a product family that includes NICs, optics and SuperNICs, and is not solely a line of switches. Executives also noted Meta has historically procured switching technology from multiple vendors, underscoring a multi-supplier approach on customer switching decisions.
Supply, commitments and deferred revenue
The company said it does not view itself as being supply constrained in a manner that would prevent it from meeting expected demand. Last quarter, Arista’s purchase commitments ran to approximately $6.8 billion, a 120% increase year-over-year.
Product deferred revenue was disclosed at roughly $3.0 billion, up 200% year-over-year and 20% quarter-over-quarter. Management highlighted that some projects carry acceptance cycles that can extend as long as 18 months, which contributes to deferred revenue balances.
Arista reiterated its goal of achieving $1.25 billion in campus sales in calendar year 2026.
Company fundamentals and analyst revisions
The networking equipment maker reported a market capitalization around $160 billion and revenue growth of 28.6% over the last twelve months. According to InvestingPro analysis cited in the briefing material, 16 analysts have revised their earnings estimates upward for the upcoming period, though the stock currently trades above its Fair Value.
Following Arista’s reported fourth-quarter 2025 results, several brokerages adjusted their price targets upward. The company posted fourth-quarter earnings per share of $0.82, beating the $0.76 consensus, and reported revenue of $2.49 billion versus an expected $2.38 billion.
In response to the results, Needham lifted its price target to $185 from $165 and maintained a Buy rating, while Piper Sandler raised its target to $175 from $159 and kept an Overweight rating. Both firms cited growth in artificial intelligence as a key driver behind their revised targets. Arista also raised its fiscal 2026 revenue guidance by approximately 6%.
Market reaction and outlook
Despite the positive quarterly performance and upgraded guidance, Arista’s shares fell in after-hours trading amid broader market movements and lingering uncertainties. Nonetheless, the developments described by management and reflected in analysts’ actions indicate a generally favorable view among sell-side firms regarding Arista’s near-term prospects.
Note: The article presents company guidance, analyst ratings and reported results as disclosed during the webinar and in company statements. It does not attempt to project outcomes beyond those statements.