Piper Sandler has increased its price target on Arista Networks to $175.00 from $159.00 while keeping an Overweight rating on the stock. According to InvestingPro data, Arista is currently valued at $180.42 billion, with shares trading near $143.68 and a price-to-earnings ratio of 54.41.
The broker's decision follows quarterly results that outperformed expectations and triggered a roughly 15% jump in Arista's shares in after-hours trading on Friday. Those results underscore continued revenue momentum: InvestingPro data show the company has delivered 27.75% revenue growth over the past twelve months.
Management raised the company's annual growth guidance to 25%, an increase of 5 percentage points from its prior forecast, attributing the uplift primarily to strength among Cloud and AI customers. Arista also lifted its AI revenue forecast by $500 million, taking the projection to $3.25 billion. That revised AI contribution represents about 30% of total revenue, and company commentary indicates the potential for having as many as four customers each contributing more than 10% of revenue in 2026.
Operationally, purchase commitments rose by $2 billion quarter-over-quarter, driven mainly by orders for chips and, to a lesser extent, memory. Management signaled plans to increase product prices where necessary later this year as a way to prioritize securing components and protect supply continuity.
In related earnings developments, Arista reported strong fourth-quarter 2025 results, beating analyst expectations on both earnings and revenue. The company posted earnings per share of $0.82 versus forecasts of $0.76, and revenue reached $2.49 billion compared with the $2.38 billion analysts had forecast. Following those results, Needham raised its price target on Arista to $185 from $165 and maintained a Buy rating, citing the company's solid performance and an upward revision to fiscal 2026 revenue guidance of roughly 6%.
Despite the robust quarterly performance and the broker target increases, Arista's stock experienced a decline in after-hours trading in the wake of broader market moves. Investors remain attentive to the company's near-term execution, supply chain steps and the concentration dynamics implied by a rising share of revenue tied to AI customers.
These developments highlight a few interconnected themes for market participants: accelerating AI-related demand driving outsized revenue contribution; active inventory and component commitments to secure capacity; and pricing flexibility as a mechanism to manage supply constraints. Each of those factors will bear on Arista's top-line trajectory and margin profile in the coming quarters.