CSCO vs ANET — which stock performed better?

Cisco Systems, Inc. (CSCO) versus Arista Networks, Inc. (ANET), Information Technology, on 2026-08-14.

Result

Arista Networks, Inc. (ANET) performed better on 2026-08-14. CSCO moved -2.550%, ANET moved 0.570%.

Why these two companies

Cisco posted record fiscal Q4 2026 revenue of $17.3 billion and non-GAAP EPS of $1.22 after the close on Wednesday, August 12, yet shares reversed sharply lower in the following session as investors questioned rich valuations even after a beat. That immediately raises the classic networking-sector question: does the AI infrastructure buildout favor the diversified legacy leader Cisco, or the faster-growing pure-play Ethernet switch maker Arista Networks, which just delivered its own blowout 38% revenue growth quarter on August 4 and is trading near all-time highs.

The research

Cisco makes the networking equipment — routers, switches, and security gear — that much of the world's internet and corporate networks run on, while Arista Networks makes high-speed switches that are especially popular inside the giant computer data centers used for artificial intelligence. Cisco just reported very strong quarterly results on Wednesday, August 12, but its stock fell anyway, which shows that even good news can disappoint when expectations are high. Arista reported its own very strong results on August 4 and its stock jumped to a new high, reflecting excitement about AI-related data center spending.

One reason to like Cisco is that it is a large, steady, well-known company that just posted record full-year sales and is returning cash to shareholders through buybacks. One reason to like Arista is that its sales are growing much faster right now, powered almost entirely by the AI data center boom that many investors think has years left to run.

Something to keep in mind about Cisco is that its stock dropped noticeably right after its earnings beat, showing that investors have been pricing in a lot of good news already. Something to keep in mind about Arista is that its stock has already climbed a great deal and sits close to its highest price ever, so it may be more sensitive to any disappointing news about AI spending.

Both companies benefit from the same big trend — companies and cloud providers building out AI infrastructure — but they represent very different bets: a large, diversified, steady grower versus a smaller, faster, more AI-concentrated grower.