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Will ANET's Deeper Focus on Cloud-Native Software Pay Off?

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Key Takeaways

  • ANET launched CloudEOS Edge and cognitive Wi-Fi to enhance cloud-native and multi-cloud offerings.
  • The Awake Security acquisition boosts ANET's AI-based security and cognitive campus portfolios.
  • ANET's 2025 earnings estimates have risen in 60 days, reflecting confidence in its growth strategy.

Arista Networks, Inc. (ANET - Free Report) has made several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. It has introduced new cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. This supports video conferencing applications like Google Hangouts, Microsoft Teams and Zoom. 

The acquisition of Awake Security, a Network Detection and Response platform provider that combines AI with human expertise to autonomously hunt and respond to insider and external threats, has expanded its cognitive campus portfolio with new platforms. These include the 750 Series modular chassis and the 720 Series 96 port fixed switch. Arista has also announced unified edge innovations across wired and wireless networks for its Cognitive Campus Edge portfolio for Enterprise Workspaces and an enterprise-grade Software-as-a-Service offering for the flagship CloudVision platform.

Arista should benefit from its software-driven, data-centric approach that helps customers build their cloud architecture and enhance the cloud experience they offer their clients. The company holds a leadership position in 100-gigabit Ethernet switching for the high-speed datacenter segment. It is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.

Other Tech Firms Focusing on Cloud Networking

Cisco Systems, Inc. (CSCO - Free Report) is the largest player in the networking space. The company has a strong presence in the router and switch market. It has retained a leadership position in WLAN and Ethernet switching and is rapidly expanding its presence in the network security domain. Cisco provides Next-Generation Network Routers that transport data, voice and video information from one IP network to another. It is expanding its Agentic AI footprint with the introduction of Webex AI Agent, Cisco AI Assistant for Webex Contact Center, Workflow Automation in Cisco AI Assistant for Webex, AI Capabilities in Webex Control Hub and Webex Calling Customer Assist. Its strategy of integrating AI across security and collaboration platforms and developing agentic capabilities across the portfolio is a key catalyst for improving the customer experience.

Juniper Networks Inc. (JNPR - Free Report) is taking significant steps to enhance the adoption of its AI-Native Networking Platform through the introduction of its Blueprint for AI-Native Acceleration. This comprehensive framework is designed to simplify and accelerate the deployment and utilization of AI-driven networking solutions, benefiting enterprises across various sectors. By leveraging Juniper's AI-Native Networking Platform, organizations can expect up to an 85% reduction in operational expenses and a 90% decrease in network trouble tickets. The platform's industry-leading AIOps technology is key to delivering these results, providing reliable, measurable and secure connections across all devices and applications. The Blueprint for AI-Native Acceleration further enhances these capabilities, enabling customers to achieve up to nine times faster deployments.

ANET’s Price Performance, Valuation and Estimates

Arista has surged 10.7% over the past year compared with the industry’s growth of 34.3%

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Image Source: Zacks Investment Research

From a valuation standpoint, Arista trades at a forward price-to-sales ratio of 13.47, above the industry.

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Arista’s earnings for 2025 has increased over the past 60 days.

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Image Source: Zacks Investment Research

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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