Arista Networks Inc (NYSE:ANET) stock rose 7.21% (As on April 8, 11:33:22 AM UTC-4, Source: Google Finance) after Rosenblatt analyst Mike Genovese upgraded the company to Buy from Neutral with a price target of $180, up from $165, based on increased confidence in the XPO strategy announced at OFC and better understanding of the sizing of the large front-end wins with Google (GOOGL) and Anthropic. The firm cited increased confidence in the company’s XPO strategy announced at OFC and better understanding of front-end wins with Google and Anthropic. Rosenblatt previously downgraded the stock to Sell in April 2024 and upgraded it to Neutral in April 2025.
Arista Networks holds a deferred revenue balance of $5.4 billion. The company has guided for revenue growth of 25% in 2026 and 20% in 2027. Rosenblatt said revenue growth could exceed guidance based on strong orders for scale out Ethernet and scale across Switching & Routing. Consensus estimates project 2026 revenue growth at 27% and 2027 at 22%. The firm set its price target based on 32.5 times 2027 earnings power of approximately $5.50 per share. Rosenblatt said Arista could potentially grow revenue closer to 40% in both years as it maintains share at Microsoft and Meta and gains share at Google.
Moreover, Arista Networks is on a growth incline, as recent moves indicate. The company introduced a revolutionary AI data-center networking module, which could improve operational efficiency and significantly enhance AI performance. This ambitious project, named XPO, implements a cutting-edge optics module that quadruples density versus past models. The anticipated demos signal potential for a dramatic shift in data-center capabilities. Arista Networks Unveiled Next Generation Data and AI Center Networks. The R4 series platforms for AI, data center, and routed backbone deployment deliver high performance, low AI job completion times, low power consumption, and integrated security, while helping customers reduce total cost of ownership. Arista Launched Cognitive Campus Switches for the Industrial Edge. Arista’s new ruggedized platforms bring the power, reliability, and operational simplicity of EOS to demanding industrial or outdoor environments.
In addition, Arista introduced intelligent innovations for AI networking. Capabilities such as Cluster Load Balancing (CLB) and CloudVision Universal Network Observability (CV UNO) maximize AI workload performance and deliver deep job-centric observability for enhanced troubleshooting. Arista Networks to collaborate with industry leaders to deliver Ethernet for Scale-Up Networks (ESUN). ESUN was unveiled at the OCP Global Summit in October 2025 as an open OCP workstream committed to the goal of open standards-based solutions for scale-up, based on Ethernet, and open to all.