Arista Earnings: Supply Upside Drives a Big Raise to Guidance

Arista Networks’ latest quarter prompted a major update from Morningstar: the firm raised its fair value estimate to $230 per share from $190, saying the stock now looks fairly valued after results. Morningstar cited that Arista’s Q2 results beat guidance and that management lifted the full-year revenue guide by 10%. Sales grew 38% year over year to $3.06 billion. The 2026 revenue outlook now stands at $12.6 billion, up from $11.5 billion, implying 40% growth. The note also argues that Arista is well positioned for high-speed connectivity tied to AI performance. Shares rose 10% after hours.