Arista Stock Outlook: Earnings Growth and Valuation Analysis Suggest Moderate Bullish Potential

Earnings Report Release Date: Tuesday, 4th November 2025

Arista Networks (NYSE: ANET) could be setting up for a bullish rally following Q3 earnings forecasts. Reporting for Q3 2024, Arista posted earnings per share (EPS) of $0.57, with analysts forecasting Q3 2025 EPS at $0.65 — representing a 14.04% year-on-year increase.

However, despite the strong earnings growth, the Arista stock price has already surged 58.59% over the past year, climbing from $156.86 on 4th November 2024 to $248.77 as of 4th November 2025. This suggests that short-term gains from upcoming earnings reports may already be priced in due to prior market optimism.

Stock Split and Market Consolidation

Some investors may recall the sharp 70% drop in early December 2024, though this was not a market crash — it was due to a 4-for-1 stock split. Since the split, Arista Networks has experienced a period of market consolidation, with reduced momentum compared to its pre-split performance.

Valuation and Fundamental Analysis

From a fundamental perspective, Arista currently trades with a price-to-earnings (P/E) ratio of 61.97 and a forward P/E of 47.66. These figures indicate that Arista shares are trading at a premium valuation, which may suggest limited short-term value.

However, the significant difference between the current and forward P/E implies strong earnings growth expectations, supporting P/E-based price targets as follows:

• High estimate: $204.91 (a 33.71% upside)
• Low estimate: $178.16 (a 16.25% upside)
• Analyst consensus target: $168.12 (a 6.68% upside)

These valuations suggest that Arista stock may be slightly overvalued, with potential growth already factored in — possibly reflecting market caution or uncertainty about future demand.

Investor and Trader Outlook for 2025

Despite concerns over valuation and market consolidation, Arista Networks remains fundamentally strong. Continued earnings growth and solid financial performance could still lead to positive share price performance in 2025.

However, investors should temper expectations — while Arista stock may maintain an upward trend, previous gains could limit the magnitude of future returns.