Key Takeaways

• Arista Networks stock is growing quarterly revenue at 35% versus Cisco Systems stock at 12%, a gap driven by Arista’s dominance in Ethernet-based AI fabric deployments at Microsoft, Meta, and emerging hyperscalers.
• TIKR’s valuation model targets around $339 for Arista Networks stock at an annualized IRR of roughly 18%, versus around $145 for Cisco Systems stock at roughly 5%, a 13-percentage-point gap in favor of Arista.
• Arista’s 43% operating margin in Q1 2026 is nearly double Cisco’s 25% operating margin in Q3 FY2026, reflecting the structural cost advantage of a pure-play networking business over a diversified portfolio carrying Splunk integration and collaboration declines.
• Cisco’s hyperscaler…