New York, February 15, 2026, 11:22 EST — The market has shut down.
- Arista Networks climbed 4.8% on Friday, boosted by its upbeat quarterly revenue outlook.
- Management flagged higher memory costs, but still projected flat margins.
- Markets get back to business on Tuesday, following the U.S. Presidents Day holiday break.
Arista Networks, Inc. ended Friday up 4.79% at $141.59. The stock bounced from $138.00 to $148.77 during the session, investors weighing the company’s most recent outlook. (investors.arista.com)
Why does it matter? Arista often stands in as a proxy for data center investment driven by artificial intelligence projects. Lately, the stock has turned into a barometer for networking hardware names. With U.S. markets closed Monday for Washington’s Birthday (Presidents Day), traders will have to wait until Tuesday morning to react. (New York Stock Exchange)
Arista reported a 28.9% jump in quarterly revenue to $2.488 billion compared with the same period last year, posting non-GAAP earnings of $0.82 per diluted share. Looking ahead, the company expects to bring in roughly $2.6 billion in revenue for the first quarter and is targeting a non-GAAP operating margin near 46%. CFO Chantelle Breithaupt highlighted “strong operating leverage” for the period, as Arista crossed $1 billion in net income for the quarter. (investors.arista.com)
Arista’s outlook beat what analysts had penciled in, Reuters reported last week, with cloud and AI players like Microsoft and Meta driving the demand. (Reuters)
Margins are getting squeezed, and it’s anything but straightforward. CEO Jayshree Ullal didn’t mince words on the call, calling memory prices “horrendous” and pointing to ongoing shortages. She also noted that Arista is selectively hiking prices on products that pull in more memory. William Blair’s Sebastien Naji said the company aims to soften the margin blow. That same report put Arista’s projected AI networking revenue at $3.25 billion for 2026—double what it is now. (Network World)
Evercore ISI’s Amit Daryanani lifted his price target to $200 from $175, sticking with his Outperform rating after what he described as “a robust beat” and upbeat guidance. (TipRanks)
Traders are zeroing in on component costs, especially as Cisco’s situation throws the issue into sharp relief. The company has flagged memory inflation, and it hasn’t taken much for investors to react—stocks get hit fast on any suggestion that rising input prices could eat into sector margins.
Here’s the quick risk: should hyperscalers pull back on AI-driven orders, or if memory shortages drag out past what management anticipates, Arista’s revenue growth and margins may lose that “steady” look baked into the guidance. Any hit from customer concentration or supply chokepoints would become obvious in a hurry.
Investors now turn to Tuesday, looking to see if Friday’s rally—sparked by earnings—sticks. They’ll also keep an eye on whether Arista shares more on demand and pricing during its slot at Bernstein’s “What’s next in Tech” webcast, scheduled for Feb. 25 at 1:00 p.m. ET. (investors.arista.com)
