Jim Cramer Says Arista Networks (ANET) Stock Is “On Fire” After Q2 Earnings Beat – CoinCentral

TLDR

• Arista Networks posted Q2 revenue of $3.04 billion, up 37.7% year over year, beating estimates by $210 million
• Non-GAAP EPS came in at $1.02, topping the $0.89 consensus by $0.13
• Q3 2026 revenue guidance of ~$3.3 billion easily cleared the $2.95 billion Wall Street estimate
• ANET has rallied roughly 50% since February, with the stock opening at $197.35 Wednesday
• Zacks upgraded ANET to “Strong Buy” and TD Cowen raised its price target to $250

Arista Networks (ANET) opened at $197.35 on Wednesday, near its 52-week high of $214.89, after delivering a Q2 earnings report that cleared Wall Street expectations on every major metric.

Arista Networks, Inc., ANET

Revenue for the quarter hit $3.04 billion, a 37.7% jump year over year. That came in $210 million above the analyst consensus. It marked the first time Arista crossed the $3 billion revenue threshold in a single quarter.

Non-GAAP earnings per share landed at $1.02, beating estimates of $0.89 by $0.13. Return on equity was 30.65% and net margin stood at 38.37%.

Jim Cramer highlighted the results on the August 5 episode of Mad Money, pointing to the earnings beat and what he described as “incredible results.” He noted the stock had added about 4% on the day and was up roughly 50% since he spoke with the company in February.

The stock carries a market cap of $248.90 billion and trades at a price-to-earnings ratio of 62.25. Its 50-day moving average is $171.74 and its 200-day moving average is $153.43.

Q3 Guidance Tops Expectations

Management guided Q3 2026 revenue to approximately $3.3 billion, well above the $2.95 billion consensus. Non-GAAP diluted EPS guidance was set between $1.06 and $1.08, versus a $0.92 Street estimate. Non-GAAP operating margin is projected at 48% to 49%.

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Sell-side analysts expect full-year EPS of $3.70. The consensus price target sits at $226.05, with a “Buy” rating across the board. Barclays raised its target to $289 and TD Cowen lifted its to $250, both following the August 5 results.

Zacks upgraded ANET from “Hold” to “Strong Buy” after the print. Two analysts have a Strong Buy rating and 23 have a Buy. No analyst currently has a sell rating on the stock.

Short interest fell 35.6% in July to 12.8 million shares, or about 1.0% of shares outstanding. That drop in bearish positioning has helped support the post-earnings momentum.

Insider Sales and Institutional Activity

CEO Jayshree Ullal sold 767,029 shares at an average price of $201.22 on August 5, totaling roughly $154.3 million. The sale was executed under a pre-arranged Rule 10b5-1 plan. She still directly owns 16,387,981 shares valued at approximately $3.3 billion.

Major shareholder Andreas Bechtolsheim sold 300,000 shares at $203.30 on August 5, bringing in about $61 million. That transaction was also under a 10b5-1 plan. Insiders have collectively sold around $687 million worth of stock over the past 90 days.

On the institutional side, Wedge Capital Management raised its stake by 12.4% in Q2, adding 53,533 shares to bring its total to 485,198, valued at $82.4 million. Institutional investors as a group hold 82.47% of ANET.

Supply availability, not customer demand, is flagged as the main near-term constraint. Management is working to secure components as it raises its outlook.