A Business at a Glance
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Table of Contents PART I In a world where data is increasingly a precious commodity and competitive differentiator, Arista was founded to enable our customers to access all their centers of data in the quickest, most reliable, and secure manner. Over the last two decades, we have emerged as an industry leader, delivering data-driven, client-to-cloud networking-as-a-service. Our “Centers of Data” strategy is a fundamental pivot from legacy networking approaches that create incongruent silos to a unified, data-driven approach in which the network is a service that interconnects four primary domains: AI Centers, Data Centers, Campus Centers, and WAN Centers. Anchored by Arista’s state-oriented Extensible Operating System (EOS) and Network Data Lake (NetDL), our network-as-a-service platform delivers a seamless, consolidated networking experience regardless of data location.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 9.0B | 9.0B | 7.0B | 5.9B | 4.4B | 2.9B |
| Net Income | 3.5B | 3.5B | 2.9B | 2.1B | 1.4B | 841M |
| EPS | $2.75 | $2.75 | $2.23 | $1.65 | $1.07 | $0.66 |
| Free Cash Flow | 4.3B | 4.3B | 3.7B | 2.0B | 448M | 951M |
| ROIC | 30.6% | 192.0% | 152.1% | 88.0% | 70.1% | 133.3% |
| Gross Margin | 64.1% | 64.1% | 64.1% | 61.9% | 61.1% | 63.8% |
| Debt/Equity | 0.00 | 0.57 | 0.41 | 0.38 | 0.39 | 0.01 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 3.9B | 3.9B | 2.9B | 2.3B | 1.5B | 925M |
| Operating Margin | 42.8% | 42.8% | 42.0% | 38.5% | 34.9% | 31.4% |
| ROE | 28.4% | 31.4% | 28.5% | 28.9% | 27.7% | 21.1% |
| Shares Outstanding | 1,277M | 1,277M | 1,279M | 1,265M | 1,267M | 1,279M |
Arista Networks, Inc. passes 6 of 9 quality checks, suggesting mixed fundamentals.
Arista Networks, Inc. trades at 55.3x 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 45.6x vs a median of 38.4x. The company's 5-year average ROIC is 127.1% with a gross margin of 63.0%. Total shareholder yield (buybacks) is 0.8%. At current prices, the estimated annualized return to fair value is +32.9%.
Arista Networks, Inc. (ANET) has a current P/E ratio of 55.3, 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 127.1%. This indicates strong capital allocation and a potential competitive advantage.
Arista Networks, Inc. (ANET) has a market capitalization of $194.1B. It is classified as a large-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 0.83%.
Based on historical P/E analysis, Arista Networks, Inc. (ANET) appears expensive. The current P/E of 55.3 is 32% above its historical median of 41.9. The estimated fair value CAGR (P/E method) is 35.9%.
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, 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.