Will Arista's Advanced Switch Portfolio Accelerate Its Future Growth?

Arista Networks, Inc.’s (ANET) hardware networking switching portfolio is built to deliver high-performance, scalable, and reliable connectivity for modern data centers and cloud environments. The company offers a broad range of switches optimized for cloud, AI, and enterprise networks, combining cutting-edge hardware with operational simplicity.

Arista’s flagship switches include the 7000 and 7800 Series, designed for high-performance spine-and-leaf data center architectures with ultra-low latency and high port density supporting speeds up to 400G and 800G Ethernet, making them ideal for hyperscale cloud and AI-driven networking environments. The company’s switch lineup also features the 720XP and 710 Series for campus and enterprise networks, the 7280 Series for high-performance, low-latency applications, and the 7500R Series for large-scale, modular data center deployments.

The company’s switches also offer features like EVPN-VXLAN for network virtualization, precise time synchronization, and real-time telemetry, helping organizations efficiently monitor traffic, quickly resolve issues, and automate network operations.

The company has announced the launch of its new rugged 710HXP 28TXH and 710HXP 20TNH switches, designed for harsh environments with multi-gig and high-power PoE support. Its next-generation R4 Series switches, including 800 GbE leaf and spine platforms and 7020R4 leaf switches, are gaining traction in the market. These new and upgraded switches will strengthen Arista’s position in high-performance, AI-driven, and cloud-scale networking, likely helping it capture emerging market opportunities and drive future growth.

How Are Competitors Faring?

Arista faces competition from Cisco Systems, Inc. (CSCO) and Hewlett Packard Enterprise Company (HPE). Cisco offers a wide range of switches, with the Catalyst Series for campus and branch networks and the Nexus Series for high-performance, low-latency data center and cloud workloads. Cisco recently launched the N9300 Series smart switches, a new generation of data center switches. It also introduced the N9100 switch, using NVIDIA Spectrum X silicon.

HPE introduced the Aruba CX 10040 switch, which uses an AMD Pensando DPU to improve performance and support AI workloads. It also expanded its campus switch lineup with new CX 6300M series switches that deliver faster speeds, enhanced security, and high-accuracy timing for enterprise and IoT use cases.

ANET’s Price Performance, Valuation & Estimates

Shares of Arista have gained 7.4% over the past year compared with the industry’s growth of 6.2%.

From a valuation standpoint, Arista trades at a forward price-to-sales ratio of 14.39, above the industry average of 4.66.

Earnings estimates for 2025 have remained static at $2.88 over the past 60 days, while the same for 2026 have also remained static at $3.31.

Arista currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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