How Arista Networks Stock Gained 40%
Arista Networks (ANET) stock surged 45%, fueled not just by a solid 14% revenue jump but also investor excitement over bold moves—from a game-changing AI product launch to a strategic acquisition. While margins slipped slightly, optimism for the next-gen lineup and upcoming earnings keeps the momentum alive.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 5292025 | 11252025 | Change | |
|---|---|---|---|
| Stock Price ($) | 86.4 | 125.0 | 44.8% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 7,436.5 | 8,448.3 | 13.6% |
| Net Income Margin (%) | 40.7% | 39.7% | -2.4% |
| P/E Multiple | 35.9 | 46.9 | 30.4% |
| Shares Outstanding (Mil) | 1,260.0 | 1,258.0 | 0.2% |
| Cumulative Contribution | 44.8% |
So what is happening here? The stock jumped 45%, driven by a 14% revenue boost and a 30% lift in P/E multiple, despite a slight 2.4% dip in net margin. These shifts set the stage for the upcoming business updates.
Here Is Why Arista Networks Stock Moved
- Strong Q2 Earnings Beat: ANET reported Q2 2025 revenue of $2.205B and EPS of $0.73, exceeding estimates. Raised FY25 outlook.
- VeloCloud Acquisition: Acquired VeloCloud SD-WAN from Broadcom, expanding AI-driven campus & branch networking offerings.
- AI-Driven Product Launch: Unveiled new AI-driven enterprise switches and Wi-Fi 7 APs for campus and branch.
- Next-Gen R4 Series: Launched R4 Series platforms with 800GbE for AI, data center, and routed backbone.
- Q3 Earnings & Outlook: Reported strong Q3 2025 revenue of $2.308B, but stock saw a decline post-earnings.
Our Current Assesment Of ANET Stock
Opinion: We currently find ANET stock attractive but volatile. Why so? Have a look at the full story. Read Buy or Sell ANET Stock to see what drives our current opinion.
Risk: A good way to gauge risk is by checking how much ANET has fallen during major market stress. It dipped about 44% in the 2018 correction, roughly 34% during the Covid pandemic sell-off, and nearly 38% in the inflation shock period. Even with solid fundamentals, the stock has shown it’s not immune to sharp losses when broader markets turn south. So, while ANET has its strengths, investors should keep these sizable drawdowns in mind.
ANET stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.