Arista Networks: Strength in Numbers - Raising LT Growth Targets

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Arista Networks: Strength in Numbers - Raising LT Growth Targets

Idea

May 12, 2026 07:53 PM GMT

Morgan Stanley & Co. LLCMArista Networks | North America Meta A Marshall

Equity Analyst

Strength in Numbers - Raising Meta.Marshall@morganstanley.comAntonio Jaramillo +1 212 761-0430

Research Associate

Antonio.Jaramillo@morganstanley.com +1 212 761-4438

LT Growth Targets

Arista Networks (ANET.N, ANET UN)

Positive revision to FY25-FY28 growth outlook (+20% vs. mid- Telecom & Networking Equipment | United States of

America

teens prior) from new disclosures support durable AI demand Stock Rating Overweight

and steps Arista taking to manage supply tightness. ~20% IndustryPrice targetView $180.00In-Line

pullback following F1Q26 earnings overdone and creates Shr price, close (May 11, 2026) $136.43

Mkt cap, curr (mm) $173,089

attractive entry point; Reiterate OW. 52-Week Range $179.79-83.87

Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

Key Takeaways ModelWare EPS ($) 2.60 3.11 3.52 4.08

EPS ($)** 2.94 3.56 4.06 4.71

Raising FY25-FY28 revenue CAGR outlook to ~20%+ vs. mid-teens prior Prior EPS ($)** - - - -

P/E 50.4 43.8 38.8 33.4

+54% billings growth and elevated deferred revenue support visibility into Div yld (%) 0.0 0.0 0.0 0.0

revenue for year Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

Rising purchase commitments show ANET is proactively managing supply **e ==MorganBased onStanleyconsensusResearchmethodologyestimates

tightness from a position of demand strength Quarterly EPS ($)

2026e 2026e 2027e 2027e

Quarter 2025 Prior Current Prior Current

Reiterating confidence in positioning throughout cycle. Management’s updated Q1 0.65 - 0.87 - 0.96

annual guidance framework reinforces confidence that Arista remains well Q2 0.73 - 0.90 - 1.01