Arista Raises Sales Outlook to $2.6B After Q4 EPS Beats Estimates
Arista reported Q4 adjusted EPS of $0.82 beating estimates by $0.06 and revenue of $2.48 billion surpassing consensus by $100 million. The company guided Q1 sales at $2.60 billion versus $2.44 billion expected and highlighted 29% revenue growth, 47.5% operating margin and $1 billion quarterly net income.
1. Q4 Earnings Beat Estimates
Arista reported adjusted EPS of $0.82 in Q4, surpassing the $0.76 consensus, and delivered revenue of $2.48 billion versus $2.38 billion expected, driving a historic $1 billion in quarterly net income with a 47.5% operating margin on 29% year-over-year growth.
2. Strong Q1 Revenue Guidance
The company set Q1 revenue guidance at $2.60 billion against a $2.44 billion consensus, implying robust sequential growth and signaling confidence in continued demand for its networking solutions in the first quarter of 2026.
3. AI Product Innovations
During the quarter, Arista introduced its R4 series platforms for AI, data center and routed backbone deployments, while expanding Arista AVA with new agentic AI features for multi-domain event correlation, continuous monitoring and network troubleshooting.
4. Analyst Upgrades
Following the earnings release, Needham raised its price target from $165 to $185 and KeyBanc increased its target from $170 to $178, reinforcing a consensus Buy rating and an average price target of $216.26.