Arista Networks Stock Today (ANET), November 23, 2025: AI Networking Leader Pulls Back, But Wall Street Still Sees Upside

As investors wake up this Sunday, November 23, 2025, Arista Networks (NYSE: ANET) is coming off another volatile week that capped a sharp November correction in one of the market’s premier AI infrastructure names.

On Friday, November 21, Arista Networks’ stock closed at $117.43, down 1.81% on the day. That move left shares lower by 10.61% over the last five trading days, down 25.53% so far in November, but still up about 6.2% year to date and 15.6% over the past 12 months. ^[1]

Despite that painful short‑term slide, Arista still commands a market capitalization of roughly $148 billion, based on about 1.26 billion shares outstanding. ^[2]

Below is a look at what’s driving ANET today — from the recent sell‑off and AI competition, to red‑hot fundamentals, new products, and what analysts are expecting from here.

Arista Networks stock snapshot going into the new week

The last trading session before today’s date (Friday, November 21) tells you almost everything about the current mood around ANET:

Friday close: $117.43
Daily move: –1.81%
5‑day change: –10.61%
Month‑to‑date (November): –25.53%
Year‑to‑date: +6.24%
52‑week change: +15.56% ^[3]

Trading activity has been elevated. On Friday, more than 16.5 million shares changed hands, around 65% above Arista’s recent average session volume of roughly 10 million, according to MarketBeat data. ^[4]

In other words, the stock is correcting hard after a huge multi‑year run, with heavy trading showing just how actively investors are repositioning around the AI networking theme.

Why ANET has sold off despite “beat and raise” earnings

1. Q3 2025 earnings: strong numbers, cautious interpretation

On November 4, Arista reported another set of impressive quarterly results:

Q3 2025 revenue: about $2.31 billion, up roughly 27–28% year over year. ^[5]
Non‑GAAP EPS:$0.75, ahead of around $0.71 expected. ^[6]
Non‑GAAP gross margin: about 65.2%, an exceptionally high level for hardware‑centric infrastructure. ^[7]

Yet the stock dropped more than 10% in after‑hours and subsequent trading after the release. ^[8]

What spooked the market?

Management guided Q4 2025 revenue to about $2.3–$2.4 billion, with a midpoint that only slightly beat Street estimates, and signaled gross margins moderating versus 2025 peaks. ^[9]
At Arista’s recent analyst event, the company projected about 20% revenue growth in fiscal 2026 to roughly $10.5 billion, with AI networking revenue expected to surge ~70% to $2.75 billion. Even though those numbers are strong, investors saw them as more conservative than the hyper‑bullish AI narrative they had priced in. ^[10]

The result: a perception that growth and margins may be normalizing from extraordinary levels, even if the absolute picture remains robust.

2. Valuation comedown after a multi‑year surge

From late 2022 through late 2025, Arista has been one of the standout winners of the AI spend cycle. Trefis estimates that ANET’s share price has climbed more than 240% since November 2022, driven largely by a 115% increase in trailing twelve‑month revenue and a significantly higher profit margin profile. ^[11]

More recently, however, the stock has given back ground:

Between August 23 and November 22, 2025, ANET fell about 11.9%, even as its trailing revenue continued to rise.
Trefis attributes most of that decline to P/E multiple compression – the price investors are willing to pay per dollar of earnings. ^[12]

Put differently: the fundamentals kept improving, but the stock had already run so far that even slightly tempered guidance was enough to trigger a re‑rating.

Today, ANET trades at roughly 44x trailing earnings, with Barron’s placing the stock at around 41x forward earnings, comparable to other AI‑linked chip and infrastructure leaders like Broadcom and AMD. ^[13]

3. AI competition headlines and customer concentration

Another pressure point is the growing competition inside AI data centers:

Reports this autumn highlighted that major customers like Meta and Oracle are exploring or adopting Nvidia’s Spectrum‑X Ethernet networking for parts of their AI infrastructure, sparking concerns about Arista’s share of spend at hyperscale cloud and AI customers. ^[14]
Arista still derives a significant portion of revenue from a small number of “cloud and AI titans,” particularly Microsoft and Meta, as its own disclosures and external analyses emphasize. ^[15]

Customer concentration is a classic double‑edged sword: it accelerates growth on the way up, but any hint of shifting vendor preferences can be magnified in the share price.

4. Insider selling adds to nervous sentiment

Insider activity has also grabbed headlines:

CEO Jayshree Ullal sold roughly 1.25 million shares in September 2025, for proceeds north of $185 million, according to Trefis’s summary of SEC filings. ^[16]
More recently, filings show President and CTO Kenneth Duda sold 55,653 shares on November 17 at prices between about $125.89 and $132.29, totaling roughly $7.2 million in proceeds. ^[17]

Insiders frequently sell for diversification or personal reasons, and both leaders still retain substantial stakes. But against the backdrop of a sector pullback, these transactions feed the narrative that management may see near‑term upside as limited.

5. Mixed signals from analysts: still bullish, but more debate

While the broad sell‑off has led to some downgrades – for example, Erste Group shifted Arista from “Buy” to “Hold” in early November on margin and valuation concerns ^[18] – the consensus view on Wall Street remains strongly positive (more on that below).

The key point: the recent decline has more to do with expectations resetting than with a collapse in Arista’s business.

Under the hood: fundamentals remain exceptionally strong

Despite the volatile tape, Arista’s operating performance continues to validate its status as a core AI networking player.

Q3 2025 by the numbers

From the company’s Q3 2025 financials and subsequent commentary: ^[19]

Total revenue: $2.308 billion, up ~27.5% year over year.
Product revenue: about $1.91 billion, up sharply from $1.52 billion a year ago.
Service revenue: about $397 million, also growing robustly.
GAAP net income: approximately $853 million, versus $748 million in Q3 2024.
GAAP diluted EPS: $0.67 (non‑GAAP: $0.75).
GAAP gross margin: about 64.6%.
Non‑GAAP gross margin: around 65.2%.

Management continues to highlight strong demand from cloud and AI customers, along with growing traction in enterprise and campus networking.

For Q4 2025, the company guided: ^[20]

Revenue: $2.3–$2.4 billion.
Non‑GAAP gross margin: 62–63%.
Non‑GAAP operating margin: 47–48%.

Looking further out, Arista has indicated:

2025 full‑year revenue of roughly $8.9 billion, up about 26–27% YoY. ^[21]
A path to about $10.5 billion in 2026 revenue, implying ~20% growth, with AI networking revenue expected to jump to $2.75 billion from $1.5 billion in 2025. ^[22]

Those are still very high growth rates for a company that already approaches $9 billion in annual sales.

Product and ecosystem updates: reinforcing the AI data center story

New 800G R4 platforms for AI and data centers

On October 29, Arista announced its next‑generation R4 Series platforms, designed specifically for AI, large‑scale data centers, and routed backbones. ^[23]

Key points from the launch:

The R4 family offers dense 800 Gbps systems and introduces 3.2 Tbps “HyperPorts” to support massive east‑west traffic in AI clusters.
The design aims to reduce AI job completion times, lower total cost of ownership, and improve power efficiency, while integrating security features.

These 800G‑class platforms position Arista squarely in the middle of the shift toward Ethernet‑based AI fabrics, a trend many hyperscalers are embracing as an alternative or complement to proprietary interconnects.

Security partnership with Palo Alto Networks

Security is another pillar of the AI data center story. On November 14, Network World reported that Arista and Palo Alto Networks deepened their partnership to deliver zero‑trust security frameworks for AI‑era data centers. ^[24]

The joint solution:

Combines Arista’s AI networking fabric with Palo Alto’s next‑generation firewalls.
Enables zero‑trust segmentation and dynamic quarantine of suspicious traffic, while offloading high‑bandwidth “elephant flows” to preserve performance.

As AI workloads grow, customers increasingly want integrated networking + security architectures, and this partnership highlights Arista’s push to be more than just a box vendor.

How the market is rating Arista Networks now

Even after November’s correction, most Wall Street and research outlets remain constructive on ANET.

Analyst price targets and ratings

A sampling of current views:

TipRanks:
- Consensus rating: “Strong Buy” based on 19 analysts (16 Buy, 3 Hold).
- Average 12‑month price target: about $170.20, implying roughly 31% upside from recent levels. ^[25]
MarketBeat:
- 23 analysts tracked.
- Average target: about $164.31, with a range from $112 to $185.
- That implies close to 40% upside from around $117 per share. ^[26]
StockAnalysis.com:
- 15 covering analysts.
- Consensus rating: “Strong Buy”.
- Average target: about $163.80, again implying roughly 40% potential upside over the next year. ^[27]

Individual calls illustrate the spread of opinion:

Barclays recently set a $183 price target, implying more than 50% upside from recent prices. ^[28]
On the cautious side, Rosenblatt reiterated a Neutral rating with a $140 target, suggesting analysts are not unanimous about risk‑reward at current multiples. ^[29]

Outside of pure target price math, Investor’s Business Daily notes that Arista’s Relative Strength (RS) Rating has climbed to 82 out of 99, placing it among stocks showing rising market leadership over the past year, even though it is not currently in a “textbook” technical buy zone. ^[30]

Independent research perspectives

Third‑party research platforms broadly echo the bullish long‑term thesis while acknowledging near‑term volatility:

Barron’s recently argued that despite the post‑earnings dip, Arista remains a solid holding, pointing to 27% revenue growth, EPS of $0.75, and expectations for more than 20% annual EPS growth over the next several years. ^[31]
Simply Wall St highlights that Arista’s Q3 revenue of about $2.3 billion (up 27.5%) underlines its central role in AI infrastructure, and models a path to roughly $13.6 billion in revenue and $5.4 billion in earnings by 2028, which would require around 19.5% annual revenue growth from here. ^[32]

While the exact numbers and fair‑value estimates differ, the broad narrative is consistent: Arista is still viewed as a key long‑term beneficiary of AI‑driven data center spending, but expectations are being recalibrated after a massive run‑up.

Key themes for ANET investors to watch this week

As markets reopen after the weekend, here are the main storylines likely to shape ANET’s near‑term trading:

Can the stock stabilize after a 25% monthly drop?
With the shares down more than a quarter in November alone, traders will watch whether ANET can build a base around the low‑$100s, or whether further de‑rating is ahead. ^[33]
AI infrastructure sentiment and Nvidia‑related headlines.
Any news on AI capex plans from the likes of Microsoft, Meta, or other hyperscalers — or on competing Ethernet solutions such as Nvidia’s Spectrum‑X — can move ANET, given its tight linkage to that spending. ^[34]
Follow‑through on new products and partnerships.
Customer commentary around the new R4 800G platforms and the Palo Alto security integration will help investors gauge how much of Arista’s AI growth story is already in the numbers versus still ahead. ^[35]
Insider and institutional flows.
After prominent insider sales, markets will be watching institutional ownership trends. Simply Wall St notes that institutional investors have generally been adding to holdings even as volatility has picked up. ^[36]

Bottom line: A high‑quality AI networking leader in a volatile phase

As of today, November 23, 2025, Arista Networks stock sits at the crossroads of two powerful forces:

Tailwinds:
- Rapid, structural growth in AI and cloud data center networking.
- Industry‑leading margins and balance sheet strength.
- New 800G R4 platforms and security partnerships that deepen its ecosystem presence. ^[37]
Headwinds:
- A rich valuation coming off a multi‑year surge.
- Heightened competition for AI networking spend.
- Investor sensitivity to any sign of slower growth or margin compression, amplified by insider selling. ^[38]

For long‑term‑oriented investors, ANET remains one of the clearest pure‑plays on AI data center networking, but the stock is now in a “prove it” phase, where execution, competitive wins, and margin resilience will need to justify its premium multiple.

For traders, the key question heading into the new week is simple: has Arista’s November correction created a new long‑term entry point, or is the market still repricing AI infrastructure winners lower after an overheated run?

As always, this article is for informational purposes only and does not constitute financial or investment advice. Anyone considering Arista Networks stock should evaluate their own risk tolerance, time horizon, and diversification needs — and, ideally, consult a qualified financial advisor before making decisions.