Can Arista's High-Performance Network Software Fuel Its Future Growth?

Arista Networks, Inc. ANET is strengthening its market position with a software-driven networking platform built on its Extensible Operating System (EOS) and CloudVision. Its software offers strong scalability, automation and visibility, helping enterprises and cloud providers run modern, AI-ready networks more efficiently.

Arista’s EOS is a Linux-based network operating system designed with a modular architecture with a shared state database, enabling fault isolation, in-service software upgrades, and consistent operations across its switching portfolio. It also supports rich programmability, open APIs, and zero-touch provisioning for automated deployment. At the same time, its virtual EOS and containerized EOS versions extend the same capabilities across physical, virtual and cloud environments.

Its CloudVision platform is a centralized network management and automation tool that extends EOS with unified automation, telemetry and lifecycle management across data center, campus and Wide Area Network environments. It offers real-time visibility, automated provisioning, continuous compliance, and AI-driven insights through Autonomous Virtual Assist, helping enterprises run networks seamlessly and reliably. It has introduced CloudVision Universal Network Observability to support AI-powered networking.

The company is also enhancing its AI networking software with new features in the EOS Smart AI Suite, adding Cluster Load Balancing for better low-latency performance in AI clusters and NetDL Streamer for faster telemetry. As enterprises and hyperscalers expand AI and multi-cloud deployments, Arista is well-positioned to benefit from rising demand for smarter, automated networking.

How Are Competitors Faring?

Arista faces competition from Cisco Systems, Inc. CSCO and Hewlett Packard Enterprise Company HPE. Cisco is increasingly focusing on AI-powered networking software and automation to help customers run smarter, more efficient networks. The company is also expanding its networking cloud platform to provide unified, cloud-based management for network monitoring, configuration, and security. It is also adding AI features to improve performance and simplify network operations.

HPE is improving its networking software through its Aruba platform by focusing on cloud-based management, AI insights and secure connectivity. The company aims to help businesses manage networks more easily across campus, branch and data centers using a centralized cloud platform.

ANET’s Price Performance, Valuation & Estimates

Shares of Arista have gained 35% over the past year against the industry’s decline of 17%.

From a valuation standpoint, Arista trades at a forward price-to-sales ratio of 15.98, above the industry average of 3.86.

Earnings estimates for 2026 have increased 0.61% to $3.32 over the past 60 days, while the same for 2027 has also increased 0.76% to $3.96.

Arista currently carries a Zacks Rank #3 (Hold). 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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