Arista Networks: Execution driven upside

Arista Networks ANET 0.00%↑ delivered a strong set of results this quarter, demonstrating strong momentum in its business as it once again raised revenue guidance to 28%.

For context, this is the third time management is raising revenue growth guidance for the calendar year 2026, with the initial number being 20%, which was then revised up to 25% and now revised up again to 28%.

Having increased guidance by 9 percentage points, it leaves the debate of how much conservatism is left in the guidance for 2026.

Furthermore, while management has a strong track record of execution, management flagged supply chain headwinds that could cap upside in the near to medium term.