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May 6, 2026 12:20 PM

Arista Networks Posts Strong Q1, Analysts Say Supply Shortages Dampen Outlook

Shares of Arista Networks Inc (NYSE:ANET) tanked in early trading on Wednesday despite an upbeat first-quarter (Q1) report.

Key Analyst Insights

Rosenblatt Securities analyst Mike Genovese maintained a Buy rating, while raising the price target from $180 to $210.

JPMorgan analyst Samik Chatterjee reiterated an Overweight rating and price target of $200.

Needham analyst Ryan Koontz reaffirmed a Buy rating and price target of $185.

Check out other analyst stock ratings.

Rosenblatt Securities: Arista's total revenues grew 9% sequentially and 35% year-on-year to $2.71 billion. Genovese credited the growth to AI and the specialty providers category. Both the operating margin of 47.8% and earnings of 87 cents per share came in higher than expected, he added.

Management guided to Q2 revenues slightly above consensus. The company also raised its 2026 revenue growth to 27.7% from their prior projection of 25%, the analyst stated. The company raised revenue growth outlook only slightly due to supply shortages across wafers, silicon ...