Arista Networks Delivers Strong Q2 Results as Price Target Rises Despite Headwinds

Arista Networks Inc (NYSE:ANET) is one of the 12 High-Risk High-Reward Growth Stocks to Buy Right Now.

The company’s price target is raised amid a strong Q2 performance and while facing headwinds.

Arista Networks Delivers Strong Q2 Results as Price Target Rises Despite Headwinds

Released on August 5, 2025, Arista Networks Inc (NYSE:ANET)’s Q2 earnings report revealed a revenue of $2.2 billion, a 30.4% year-over-year increase. At the same time, operating expenses during the quarter increased to $370.6 million. The company also saw a rise in its inventory to $2.1 billion, signaling headwinds such as global tariffs and supply chain management.

However, with the acquisition of SD-WAN leader VeloCloud on July 1, 2025, the company anticipates increased performance in its branch solutions and its presence with managed service providers. Additionally, the company’s price target was raised from $150 to $175 by Evercore ISI, indicating the analyst’s confidence in the stock’s growth prospects.

Arista Networks Inc (NYSE:ANET) balances its high risk of 1.48 beta with a high reward of 12.17% upside potential, thus attracting investors who desire balanced growth stocks in their portfolio.

Founded in 2004, Arista Networks Inc (NYSE:ANET) is a computer networking company that specializes in designing and selling multilayer network switches. Headquartered in California, the company is a leader in providing software-driven cloud networking solutions.

While we acknowledge the risk and potential of ANET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ANET and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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