Arista Networks raises price target to $248 after strong Q2 2026 earnings beat and growth outlook.

Arista Networks reported strong Q2 2026 results with $3.036 billion revenue, up 37.7% year-over-year, and a 49.9% non-GAAP operating margin. The company’s AI Fabrics segment remains the key growth driver, supported by robust core data center networking, Campus, services, and a new 1.6 Tbps product cycle. These factors led to upward revisions in earnings estimates, with 2026 non-GAAP EPS forecast raised from $3.50 to $4.08 and 2028 EPS to $5.77. The price target increased from $216 to $248, reflecting improved growth visibility, though risks include customer concentration and margin pressures.