Is Arista Networks Stock Outperforming the Dow?

Is Arista Networks Stock Outperforming the Dow?

Thu, September 3, 2026 at 1:25 PM GMT+3 3 min read

• ANET +1.21%

With a market cap of $238.7 billion, California-based Arista Networks Inc (ANET) is a leading cloud and AI networking company that provides high-performance Ethernet switching, routing, and software solutions for large data centers, AI infrastructure, cloud providers, and enterprise networks. Its flagship Extensible Operating System (EOS) gives customers a highly programmable, automated, and scalable platform for managing complex networks.

Companies valued over $200 billion are generally described as "mega-cap" stocks, and Arista Networks fits right into that category. The company has become an important player in the AI infrastructure buildout, with its high-speed networking platforms designed to connect massive AI and cloud workloads. Arista is also expanding beyond its core data-center business into campus, routing, security, and WAN networking, broadening its addressable market.

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However, ANET shares have dipped 13.4% from their 52-week high of $214.89. On the positive side, over the past three months, ANET stock has gained 6.1%, exceeding the Dow Jones Industrial Average's ($DOWI) 3.4% uptick during the same time frame.

In 2026, ANET shares have increased 42%, outperforming the index's 10.4% return. Moreover, ANET stock has soared 37% over the past 52 weeks, outpacing DOWI's 17.2% rally over the same time frame.

The stock has been mostly trading above both its 50-day and 200-day moving averages since early April, suggesting an uptrend.

Over the past year, Arista Networks has outpaced the broader market, powered by the surging demand for high-speed networking infrastructure. As hyperscalers build increasingly massive AI clusters, Arista's Ethernet switches provide the critical connectivity needed to keep thousands of processors communicating without creating costly bottlenecks.

On Aug. 4, ANET shares climbed 3% after Arista Networks delivered better-than-expected Q2 2026 results. Revenue reached $3 billion, driven by broad-based momentum across its Arista 2.0 strategy, including networking solutions spanning clients, campuses, data centers, and AI infrastructure. Adjusted EPS of $1.02 also surpassed Wall Street expectations. Looking ahead, Arista projected third-quarter revenue of approximately $3.3 billion, with adjusted EPS expected between $1.06 and $1.08, signaling continued confidence in demand for its networking portfolio.

In comparison, key rival Dell Technologies Inc. (DELL) has shown robust momentum, surging 291% on a YTD basis, and 306.9% over the past 52 weeks, surpassing ANET stock.

Nevertheless, Arista Networks has a consensus rating of "Strong Buy" from the 26 analysts covering the stock. Moreover, the mean price target of $242 is a premium of 30% to current levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com