Arista Networks Surges on AI Networking Demand, Despite Rising Costs

By Elias Schisgall

Shares of Arista Networks surged as booming networking demand for artificial intelligence drove up the company's fourth-quarter revenue.

Shares were up 17% to $158.50 in postmarket trading after closing the session down 3.9% at $135.12. The stock has gained 23% in the past year.

Arista's revenue jumped to $2.49 billion, up from $1.93 billion a year earlier, and beating Wall Street's expectation of $2.38 billion in revenue, according to FactSet.

"Arista's momentum is clear," Chief Executive Jayshree Ullal told analysts on a call Thursday. "We find ourselves at the epicenter of mission critical network transactions. We are becoming the preferred network innovator of choice for client-to-cloud and AI networking."

For the current year, the company is projecting 25% revenue growth to $11.25 billion, ahead of analysts' expectation of $10.88 billion.

Arista is forecasting first-quarter revenue of about $2.6 billion. Analysts are expecting $2.46 billion.

The network infrastructure company on Thursday recorded a profit of $955.8 million, or 75 cents a share, compared with a profit of $801 million, or 62 cents a share, a year earlier.

Stripping out certain one-time items, Arista posted earnings of 82 cents a share, beating Wall Street expectations of 76 cents a share, according to FactSet.

Ullal said she was confident in Arista's growth targets even as it grapples with rising costs for silicon and memory technology, adding that the company has planned for memory shortages.

"We're having to smile and take it just about at any price we can get. And the prices are horrendous. They're an order of magnitude, exponentially higher," she said. "So clearly, with the situation worsening and also expected to last multiple years, we are experiencing shortages in memory.

"I know that memory is now the new gold for the AI and automotive sector," she added. "Clearly it's not going to be easy, but it's going to favor those who planned and those who can spend the money for it."

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

February 12, 2026 18:35 ET (23:35 GMT)