A Business at a Glance
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Arista Networks, Inc.
ANET
$222.2B
Mkt Cap
$173.99
-1.48%
Arista Networks, Inc. (ANET) has a current P/E ratio of 63.3, compared to its historical median P/E of 41.9. The stock is currently considered Expensive based on its historical valuation range.
Arista Networks, Inc. (ANET) has a 5-year average return on invested capital (ROIC) of 132.6%. This indicates strong capital allocation and a potential competitive advantage.
Arista Networks, Inc. (ANET) has a market capitalization of $219.1B. It is classified as a mega-cap stock.
Arista Networks, Inc. (ANET) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.37%.
Based on historical P/E analysis, Arista Networks, Inc. (ANET) appears expensive. The current P/E of 63.3 is 51% above its historical median of 41.9. The estimated fair value CAGR (P/E method) is 34.2%.
Arista Networks, Inc. (ANET) operates in the Computer Communications Equipment industry, within the Technology sector.
Arista Networks, Inc. (ANET) reported annual revenue of $9.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Arista Networks is a cloud networking-as-a-service platform company that enables customers to access data across multiple centers—AI Centers, Data Centers, Campus Centers, and WAN Centers—through a unified, data-driven architecture anchored by its Extensible Operating System (EOS) and Network Data Lake (NetDL). The company operates across three primary customer segments: Cloud and AI Titans, AI and Specialty Providers, and Enterprise, delivering high-performance Ethernet switching and routing platforms, software-driven management solutions, and support services. Arista's business model combines hardware sales (switches, routers, and access points) with recurring software and services revenue, leveraging merchant silicon to deliver purpose-built platforms with deep packet buffers, high port density, and modular chassis designs. The company differentiates through open standards-based technology, advanced diagnostics, real-time telemetry, and intelligent automation that reduce operational complexity, while its global direct sales force and channel partner network distribute products worldwide. Arista's competitive moat rests on its integrated EOS platform, comprehensive portfolio spanning AI infrastructure to enterprise campus networks, industry-leading support (24/7/365 Technical Assistance Center), and deep customer relationships with hyperscalers and enterprises across financial services, healthcare, media, and industrial sectors.
【AI infrastructure scaling accelerating】 Management expects continued strong demand across AI, cloud, and enterprise segments, with particular momentum in AI center networking deployments spanning Scale Out, Scale Across, and emerging Scale Up architectures. The company anticipates multi-year supply chain constraints on memory and silicon will persist, requiring sustained premium pricing to secure component supply and maintain gross margins within guidance ranges despite mix pressures. Arista is investing in innovation around open standards such as Ethernet Scale Up Networks (ESUN) and Ultra Ethernet Consortium specifications, with production-scale deployments expected in 2027, while maintaining aggressive commitments to campus and data center segments. Management remains focused on scaling operations to serve growing customer demand while managing working capital through multi-year purchase commitments and optimizing inventory timing around component receipts.
| Metric | Target | Period |
|---|---|---|
| AI fabrics revenue | $3.5 billion | FY2026 |
| Campus revenue | $1.25 billion | FY2026 |
| Gross margin | 62%-64% | FY2026 |
| Operating margin | approximately 46% | FY2026 |
| Q2 FY2026 Revenue | approximately $2.6 billion | Q2 FY2026 |
AI fabrics revenue (FY2026): “We also increased our AI target now to $3.5 billion this year, thereby more than doubling our AI sales annually.”
Campus revenue (FY2026): “We maintain our 2026 campus revenue goal of $1.25 billion”
Gross margin (FY2026): “For gross margin, we reiterate the range for the fiscal year of 62%-64%, inclusive of mix and anticipated supply chain cost increases for memory and silicon.”
Operating margin (FY2026): “Our operating margin outlook remains at approximately 46% for the fiscal year”
Q2 FY2026 Revenue (Q2 FY2026): “Our guidance for the second quarter is as follows. Now with the added quarterly metric of diluted earnings per share. Our effective tax rate is expected to be approximately 21.5%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 9.7B | 9.0B | 7.0B | 5.9B | 4.4B | 2.9B |
| Net Income | 3.7B | 3.5B | 2.9B | 2.1B | 1.4B | 841M |
| EPS | $2.96 | $2.75 | $0.56 | $0.41 | $1.10 | $0.16 |
| Free Cash Flow | 5.3B | 4.3B | 3.7B | 2.0B | 448M | 951M |
| ROIC | 298.6% | 192.0% | 129.7% | 93.2% | 101.6% | 146.6% |
| Gross Margin | 63.5% | 64.1% | 64.1% | 61.9% | 61.1% | 63.8% |
| Debt/Equity | 0.00 | 0.57 | 0.01 | 0.01 | 0.01 | 0.02 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 4.2B | 3.9B | 2.9B | 2.3B | 1.5B | 925M |
| Operating Margin | 42.8% | 42.8% | 42.0% | 38.5% | 34.9% | 31.4% |
| ROE | 27.6% | 31.4% | 33.1% | 34.5% | 30.5% | 23.0% |
| Shares Outstanding | 1,259M | 1,277M | 5,116M | 5,060M | 1,228M | 5,115M |
Arista Networks, Inc. passes 6 of 9 quality checks, suggesting mixed fundamentals.
Arista Networks, Inc. trades at 63.3x trailing earnings, compared to its 15-year median P/E of 41.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 52.2x vs a median of 37.1x. The company's 5-year average ROIC is 132.6% with a gross margin of 63.0%. Total shareholder yield (buybacks) is 0.4%. At current prices, the estimated annualized return to fair value is +31.9%.
Arista Networks, Inc. (ANET) has a net profit margin of 39.0%. This is a strong margin indicating high profitability.
Arista Networks, Inc. (ANET) generated $4.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Arista Networks, Inc. (ANET) has a debt-to-equity ratio of 0.57. This indicates moderate leverage.
Arista Networks, Inc. (ANET) reported earnings per share (EPS) of $2.75 in its most recent fiscal year.
Arista Networks, Inc. (ANET) has a return on equity (ROE) of 31.4%. This indicates the company generates strong returns for shareholders.
Arista Networks, Inc. (ANET) has a 5-year average gross margin of 63.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 14 years of financial data for Arista Networks, Inc. (ANET), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Arista Networks, Inc. (ANET) has a book value per share of $9.69, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong demand across AI, cloud, and enterprise segments, with particular momentum in AI center networking deployments spanning Scale Out, Scale Across, and emerging Scale Up architectures. The company anticipates multi-year supply chain constraints on memory and silicon will persist, requiring sustained premium pricing to secure component supply and maintain gross margins within guidance ranges despite mix pressures. Arista is investing in innovation around open standards such as Ethernet Scale Up Networks (ESUN) and Ultra Ethernet Consortium specifications, with production-scale deployments expected in 2027, while maintaining aggressive commitments to campus and data center segments. Management remains focused on scaling operations to serve growing customer demand while managing working capital through multi-year purchase commitments and optimizing inventory timing around component receipts.
Based on recent SEC filings and earnings calls, Arista Networks, Inc. (ANET) has provided the following forward guidance: AI fabrics revenue: $3.5 billion (FY2026); Campus revenue: $1.25 billion (FY2026); Gross margin: 62%-64% (FY2026); Operating margin: approximately 46% (FY2026); Q2 FY2026 Revenue: approximately $2.6 billion (Q2 FY2026).