New York, Feb 16, 2026, 11:19 EST — Market closed.
- Arista’s CEO calls current memory prices “horrendous,” with shortages biting deeper. She says some targeted price hikes may be unavoidable.
- Shares finished Monday at $141.59, a gain of 4.79%, as the market heads into Tuesday’s session.
- Margins, the state of component supply, and what management says at the next conference—those are what investors are zeroed in on.
Arista Networks Inc CEO Jayshree Ullal didn’t mince words, calling memory component prices “horrendous” and warning that shortages are getting worse—driven by the ongoing scramble for AI data center gear and the resulting squeeze on parts and lead times. William Blair’s Sebastien Naji noted that Arista plans to “mitigate any negative impacts to its gross margins.” The company currently holds $6.8 billion in purchase commitments and is chasing $3.25 billion in AI networking revenue by 2026. (Network World)
Why do the remarks matter? Memory’s a key part of the systems Arista pushes to hyperscale data centers. If component costs jump, gross margin takes the hit—what’s left after covering manufacturing is on the line. With U.S. markets shut for Presidents Day on Monday, traders won’t get their shot at reacting until stocks start moving again Tuesday, when supply cost warnings could get priced in. (New York Stock Exchange)
Arista ended Friday at $141.59, a gain of 6.47 points, or 4.79%, compared with Thursday’s finish. Shares saw a range from $138.00 to $148.77 during the session, with volume reaching roughly 21.8 million. (investors.arista.com)
Fourth-quarter revenue landed at $2.488 billion for the networking equipment maker, up 28.9% from the same period last year. Non-GAAP earnings hit 82 cents a share. Looking ahead, the company expects first-quarter revenue to come in around $2.6 billion, with a projected non-GAAP gross margin in the 62%-63% range and operating margin near 46%. (SEC)
Arista’s Ethernet switches and routers power huge data centers run by the likes of Microsoft and Meta—demand’s been surging as these firms build out more AI-focused infrastructure. First-quarter revenue was pegged by LSEG analysts at roughly $2.45 billion, Reuters noted after the numbers crossed. The stock? It soared, gaining over 17% in after-hours trade. (Reuters)
Evercore ISI’s Amit Daryanani bumped his price target up to $200 from $175 and maintained an Outperform. He called it “a robust beat for the December quarter,” adding that the higher growth target “underscore[s] their momentum.” (TipRanks)
Tuesday brings a clear question to the table: can Arista keep margins intact with memory still constrained, or will tighter pricing finally weigh on demand? Networking stocks are quick to react to any hint of cloud spending cooling off—even a brief lull makes waves, since so much growth depends on just a few massive clients.
The flip side: Arista’s not shy about warning on risks. Tariffs, export controls, big customers making up too much of its base, even tight supplies—all of it could upend demand momentum if expenses jump or orders get delayed. (investors.arista.com)
Key dates are coming up: Arista will take the stage at Bernstein’s “What’s next in Tech” event Feb. 25, then heads into the Morgan Stanley Technology, Media and Telecom Conference March 3. Memory pricing, gross margins, cloud demand—traders want updates on all of it. (investors.arista.com)
