---
title: "Arista Networks stock rises 1.73% before its Nov. 3 earnings report"
canonical_url: https://www.stockexpertai.com/journal/2026-10-22/arista-networks-stock-rises-1-73-before-its-nov-3-earnings-report-fd60402e41eb
last_updated: 2026-10-22T11:37:35.075Z
section: "AI Signals"
author: "Stock Expert AI Research"
publisher: Stock Expert AI
tickers: ANET
content_type: journal-article
---

# Arista Networks stock rises 1.73% before its Nov. 3 earnings report

_Arista (ANET) was quoted at $184.33 on Oct. 21, 2026, after strong June-quarter growth and with a high valuation, ahead of the next report._

![Data cover: Arista Networks stock rises 1.73% before its Nov. 3 earnings report](/public-objects/streetnews/2026-10-22/AI_SIGNALS-cover-af465943.jpg)
Stock Expert AI data cover: figures from Financial Modeling Prep; background is an illustrative public-domain photo, credited on the image.

Arista Networks (ANET) rose 1.73% to $184.33 on Oct. 21, 2026, ahead of its next earnings report on Nov. 3, 2026. The company has no new release behind the move. The setup rests on its June-quarter results, when revenue grew 37.7% from a year earlier and beat analyst estimates. The stock trades at a high price relative to earnings, so the coming report matters.

## Key facts

- **Oct. 21, 2026:** ANET was quoted at $184.33, up 1.73% on the day. The 52-week range is $114.52 to $217.41. Market cap is $232.48B.
- **Aug. 4, 2026:** Arista reported EPS (earnings per share) of $1.02 against an analyst estimate of $0.886, and revenue of $3.04B against an estimate of $2.83B.
- **Quarter ended June 30, 2026 (Q2 FY2026):** Revenue was $3.04B, up 37.7% from a year earlier. Net income was $1.21B, up 36.5%. Diluted EPS was $0.95.
- **June 30, 2026:** Cash and short-term investments were $13.34B, and total debt was $0.
- **Nov. 3, 2026:** Next earnings date. Analysts' EPS estimate is $1.08 and their revenue estimate is $3.33B.
- **Current score:** Stock Expert AI's MoonshotScore is 83.6 (Exceptional), but its valuation pillar is only 26.

| Metric | Q2 FY2026 (ended June 30, 2026) | Year-ago Q2 FY2025 / estimate |
|---|---|---|
| Revenue | $3.04B | $2.20B year ago; estimate was $2.83B |
| Operating income | $1.38B | $986.2M |
| Net income | $1.21B | $888.8M |
| Diluted EPS | $0.95 | $0.70 |
| Reported EPS | $1.02 | Estimate was $0.886 |

## What happened

Arista makes high-speed network switches and software. Data centers use them to move data between servers, including servers that run AI workloads.

There was no company announcement on Oct. 21. Headlines that day were mostly comparisons with other stocks and with Cisco. The 1.73% gain came about two weeks before the Nov. 3 report.

The last report, for the quarter ended June 30, 2026, was strong. Revenue of $3.04B beat the analyst estimate of $2.83B by $205.4M (7.3%). Reported EPS of $1.02 beat the $0.886 estimate by $0.13 (15.1%). The $0.95 diluted EPS figure comes from the company's filing. The $1.02 figure is the one FMP, our data provider, compares with analyst estimates. The gap likely reflects an adjusted (non-GAAP) basis for the $1.02 figure.

By segment, product revenue (the switches and hardware) was $2.61B, up from $1.88B a year earlier. Service revenue (support and software subscriptions) was $430.5M, up from $327.8M. Product sales drove most of the growth.

By region, the Americas brought in $2.34B, EMEA (Europe, Middle East and Africa) $438.2M, and Asia Pacific $259.6M.

We did not have a transcript of the earnings call for this article, so we are not quoting management on the drivers. A 247wallst headline that day, comparing Arista with Cisco on AI data center networking, reflects the broad market view that spending on AI data centers is lifting demand for fast networking gear. Read that as context, not as something management confirmed in the data we used.

## Why it matters for investors

**Margins over five quarters.** Growth did not come at the cost of profit, but gross margin (what is left after the direct cost of products) has slipped from a year ago.

| Quarter (ended) | Revenue | Gross margin | Operating margin | Net income |
|---|---|---|---|---|
| Q2 FY2025 (June 30, 2025) | $2.20B | 65.2% | 44.7% | $888.8M |
| Q3 FY2025 (Sept. 30, 2025) | $2.31B | 64.6% | 42.4% | $853.0M |
| Q4 FY2025 (Dec. 31, 2025) | $2.49B | 62.9% | 41.5% | $955.8M |
| Q1 FY2026 (Mar. 31, 2026) | $2.71B | 61.9% | 42.7% | $1.02B |
| Q2 FY2026 (June 30, 2026) | $3.04B | 62.9% | 45.4% | $1.21B |

Revenue rose every quarter. Gross margin fell from 65.2% to 61.9% by March 2026, then recovered to 62.9% in June. Operating margin (profit from the core business after operating costs) hit its low of 41.5% in December 2025 and reached 45.4% in June 2026, the highest in this five-quarter span. That suggests costs grew more slowly than sales in the latest quarter. Gross margin remains lower than a year earlier, which is worth watching.

**Cash flow.** Free cash flow (cash from operations minus capital spending) was $1.05B in the June 2026 quarter. That compares with $1.64B in the March 2026 quarter, $1.22B in December 2025, $1.24B in September 2025 and $1.18B in June 2025. The June quarter was the lowest of the five. Operating cash flow was $1.08B, lower than the $1.69B in the prior quarter. Cash flow can swing with the timing of customer payments and inventory, so one quarter does not make a trend. Still, it did not keep pace with net income this time.

**Balance sheet.** Arista had $13.34B in cash and short-term investments, no debt, and shareholders' equity of $14.80B. Buyback activity was minimal on a net basis in the last two quarters according to FMP, compared with $620.1M in the December 2025 quarter. The company pays no dividend.

**Valuation and peers.** On trailing 12-month figures, Arista's P/E (price relative to earnings per share) is 57.42. Price to sales is 22.06, and price to free cash flow is 45.10. Its net margin, the share of revenue kept as profit, is 38.4%. Peers look cheaper on earnings and keep less of each sales dollar:

| Company | Market cap | P/E | Net margin |
|---|---|---|---|
| Arista (ANET) | $232.48B | 57.42 | 38.4% |
| Cisco (CSCO) | $422.88B | 31.92 | 21.0% |
| Dell (DELL) | $309.01B | 27.79 | 7.5% |
| Hewlett Packard Enterprise (HPE) | $77.23B | 28.95 | 6.6% |
| IBM | $236.91B | 21.13 | 16.0% |

Investors are paying a premium for Arista's growth and profitability.

**Analysts.** Of 53 ratings, 41 are Buy and 12 are Hold, with no Sell ratings. The consensus is "Buy." Price targets range from $164.00 to $289.00, with an average of $226.64 and a median of $237.50. TD Cowen (Oct. 19) and Citigroup (Oct. 8) both kept their Buy ratings. Analysts expect revenue of $4.36B and EPS of $1.43 for the period ending March 30, 2028 (9 analysts), and revenue of $4.71B and EPS of $1.54 for the period ending June 30, 2028 (8 analysts). Targets are opinions, not predictions we are making.

**Stock Expert AI MoonshotScore.** Arista scores 83.6 (Exceptional). The sector-relative pillars are quality 88, growth 85, safety 82, momentum 76 and valuation 26. The company looks strong on profitability, growth and finances. The valuation pillar is the clear weak spot.

## Risks and what could go wrong

- **Valuation.** A P/E of 57.42 leaves less room for disappointment. The FMP discounted cash flow model, which estimates what future cash flows are worth today, gives a value of $88.86 per share. That is far below the current price. These models depend heavily on their assumptions, but the gap shows how much growth the market is already pricing in.
- **Margin pressure.** Gross margin in the June 2026 quarter, at 62.9%, was below the 65.2% of a year earlier.
- **Cash flow.** Free cash flow was lower in the latest quarter than in the previous one.
- **Insider selling.** Among the 30 most recent insider filings, those dated in the last 90 days showed 30 sales and no open-market purchases. Insiders often sell for planned or personal reasons, so this is not a verdict on the business. Older filings in the window may be missing.
- **Financial-strength scores.** The Piotroski score, a 0-to-9 check of financial health, is 4. The Altman Z score, which flags bankruptcy risk, is 17.87, which points to low risk.
- **High bar.** The June quarter beat estimates by a wide margin. Beating again may require continued strong demand.

## What to watch next

- **Nov. 3, 2026 report.** Analysts expect EPS of $1.08 and revenue of $3.33B. Compare actual results with both the estimates and the year-ago quarter.
- **Gross margin.** Does it hold near the June level of 62.9% or slip toward the March level of 61.9%?
- **Cash flow.** Does free cash flow recover from $1.05B?
- **Product versus service revenue.** Product sales drove the growth last quarter. Watch whether service revenue keeps rising too.
- **Management's outlook.** What the company says about demand and customer spending is often closely watched by investors.
- **Buybacks.** The company used its cash for large repurchases in the December 2025 quarter and showed minimal net activity since.

## Frequently asked questions

## Q: Why did Arista Networks stock go up on Oct. 21, 2026?

The stock rose 1.73% to $184.33. The company released no news that day. The move came ahead of its Nov. 3, 2026 earnings report, after a strong June-quarter report, and as financial media ran comparisons with rivals such as Cisco. We cannot attribute a single cause to a one-day move.

## Q: How did Arista Networks do in its latest quarter?

In the quarter ended June 30, 2026, revenue was $3.04B, up 37.7% from a year earlier. Net income was $1.21B, up 36.5%. Diluted EPS was $0.95. Reported EPS of $1.02 and revenue both beat analyst estimates. Operating margin was 45.4%.

## Q: Is Arista Networks stock expensive?

By earnings, it is priced above its peers. Its trailing P/E is 57.42, against 31.92 for Cisco, 27.79 for Dell, 28.95 for Hewlett Packard Enterprise and 21.13 for IBM. Arista also keeps more of each sales dollar as profit, with a net margin of 38.4%. Analysts' average price target is $226.64, within a range of $164.00 to $289.00. One valuation model, the FMP discounted cash flow model, gives $88.86 per share. Stock Expert AI's valuation pillar scores 26, which is weak. This is information, not investment advice.


*This is educational content, not investment advice. Past performance does not guarantee future results.*

## Related Tickers
- [ANET](https://www.stockexpertai.com/stock/anet)

## Sources
- [Stock Expert AI ANET page: quote, financials and MoonshotScore](https://www.stockexpertai.com/stock/anet)
- [fool.com: Arista Networks vs. CrowdStrike: Which Tech Stock Is a Better Buy in 2026?](https://www.fool.com/coverage/better-buy/2026/10/21/arista-networks-vs-crowdstrike-which-tech-stock-is-a-better-buy-in-2026/)
- [zacks.com: Arista Networks (ANET) Rises Higher Than Market: Key Facts](https://www.zacks.com/stock/news/3012180/arista-networks-anet-rises-higher-than-market-key-facts?cid=CS-STOCKNEWSAPI-FT-fundamental_analysis|yseop_template_6-3012180)
- [fool.com: Arista Networks vs. Datadog: Which Technology Stock Is a Better Buy in 2026?](https://www.fool.com/coverage/better-buy/2026/10/21/arista-networks-vs-datadog-which-technology-stock-is-a-better-buy-in-2026/)
- [247wallst.com: Arista Networks Vs. Cisco Systems: Modern AI Data Center Networking vs.](https://247wallst.com/investing/2026/10/21/arista-networks-vs-cisco-systems-modern-ai-data-center-networking-vs-legacy-enterprise-switch-leader/)

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_AI-generated under human editorial supervision. Educational research, not financial advice._