Arista Networks, Inc. (ANET)

Information Technology · Communications Equipment · US stock · S&P 500 component

$171.07 ▼ -13.26 (7.19%)

At close 22 Oct 2026 · USD · Volume 8,285,055

Compare with CSCO

Interactive chart Research report Forecast ranges Pro workspace SEC filings Historical data

Fair valueFair

$151 −11.8% to fair value

$75fair band $128–$183$226

Day's range

$169.87 – $178.72

52-week range

$114.52 – $217.41

About Arista Networks, Inc.

Arista Networks designs and sells high-speed Ethernet switches and routers, along with the software that runs them. Its main customers are large cloud and internet companies, plus enterprises and service providers that build data center and campus networks. Revenue comes from hardware sales, which carry its Extensible Operating System, and from recurring software subscriptions and support services. Demand is closely tied to spending on data center capacity.

Revenue has grown 27.1% a year over three years, leaving the last twelve months at $10.5 billion. Operating margin is 43.1%. Return on invested capital comes to 253%. It does not pay a dividend. This gives an X-Ray Score of 62 out of 100. These numbers describe past results and current financial position, and they are shown for reference only.

Price chart

Interactive chart Historical data & CSV

52-wk range $114.52 – $217.41Volume 8,285,055Daily, split-adjusted

Vitals

Market cap$218.3B

52-week range$114.52 – $217.41

Volume (last day)8,285,055

P/E (TTM)409.2

EBIT / EV yield2.2%

Free-cash-flow yield2.4%

Dividend yieldNo dividend

Revenue (TTM)$10.5B

Net income (TTM)$533M

Operating margin43.1%

Return on capital253.4%

Debt incl. leasesData missing

Cash & securities$13.3B

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$151middle half of models $139 – $194

Fair −11.8% to fair value

Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.

Price $171

Undervalued < $128Fair $128 – $183Overvalued > $183

P/E multiple

$178

P/B multiple

$157

P/S multiple

$139

EV/EBITDA multiple

$157

EV/EBIT multiple

$160

EV/revenue multiple

$148

10-year DCF, EBITDA exit

$196

5-year DCF, EBITDA exit

$204

10-year DCF, revenue exit

$194

5-year DCF, revenue exit

$200

10-year DCF, growth exit

$82

5-year DCF, growth exit

$75

Earnings power value

$71

Growth the price implies

30.5%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.

What this means

Average business, fairly priced

The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better ✓ 65 The price is not above fair value $151 fair value Debt looks manageable Revenue has been growing 27.1% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.

Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data

Valuation Weak

34/100

Expensive against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield2.2%

Free-cash-flow yield2.4%

Fair value vs price0.9×

Growth Strong

87/100

Growing faster than most of its sector.

See the numbers →

Revenue growth (3y)27.1%

EPS growth (3y)37.0%

Growth consistency100%

Profitability Strong

75/100

Earns high returns on the capital it uses.

See the numbers →

Return on invested capital253.4%

Operating margin43.1%

Gross profitability28.0%

Financial health Fair

54/100

Balance sheet is in typical shape for its sector.

See the numbers →

Piotroski F-Score4 / 9

Interest coverNo interest cost

Dividends None

–/100

Pays no dividend.

See the numbers →

Quarterly results: last 6 quarters

+27.6%

Mar '25

+30.4%

Jun '25

+27.5%

Sep '25

+28.9%

Dec '25

+35.1%

Mar '26

+37.7%

Jun '26

Revenue against the same quarter a year earlier. Latest quarter revenue $3.0B, diluted EPS $0.95.

Compare with peers

FFIV F5, Inc.55 MSI Motorola Solutions, In...48 CSCO Cisco Systems, Inc.42 CIEN Ciena Corp40

Other Communications Equipment companies by X-Ray Score.

SWOT analysis: Arista Networks, Inc.

Strengthsinside the company

Return on invested capital is 253.4%, against a median of 20.3% for industry peers.
Operating margin of 43.1% is well above the 24.3% median of industry peers, a sign of pricing power or lower costs.
Revenue has grown 27.1% a year over three years (median 8.6% for industry peers).
Earnings per share have compounded at 37.0% a year over three years.

Weaknessesinside the company

No clear weakness in the figures we track.

Opportunitiesvaluation and setting

Our Market Compass rates the backdrop for Information Technology as favourable.

Threatsvaluation and setting

Trades at 409.4x earnings, 1,020% above the 36.5x median of industry peers, so the price already assumes better results.

Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.

Compare ANET with peers and sector

Medians of 5 Communications Equipment peers and of 74 Information Technology stocks in our universe. Largest peers (X-Ray Score): CSCO 42, MSI 48, LITE 35, CIEN 40, FFIV 55.

Metric	ANET	Peers	Sector
X-Ray Score (out of 100)	62	42	50
Valuation	34	40	52
Growth	87	52	54
Profitability	75	49	49
Financial health	54	44	49
Dividends	–	–	50

Sector leaders: highest X-Ray Score in Information Technology

ANET ranks #13 of 75 in Information Technology and #1 of 6 in Communications Equipment by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.

Company	X-Ray Score
#1 MU Micron Technology Inc	79
#2 ADBE Adobe Inc.	77
#3 SNDK Sandisk Corp	73
#4 INTU Intuit Inc.	71
#5 FICO Fair Isaac Corp	71
…
#13 ANET Arista Networks, Inc. (this stock)	62

Metric	ANET	Peers	Sector
P/E ratio	409.4x	36.5x	33.0x
PEG ratio	11.07	2.18	2.19
Price / book	14.8x	12.1x	8.2x
Price / sales	20.7x	7.8x	6.8x
EV / EBITDA	44.2x	27.8x	24.5x
Price / free cash flow	42.3x	32.8x	28.7x
Dividend yield	–	–	1.0%
Gap to our fair value	−11.8%	−16.3%	−6.6%

Metric	ANET	Peers	Sector
Price change, 1 month	−16.6%	−1.1%	−2.0%
Price change, 3 months	−2.2%	−6.2%	+3.5%
Price change, 6 months	−3.7%	+8.8%	+13.4%
Price change, 1 year	+16.7%	+51.2%	+22.0%

Metric	ANET	Peers	Sector
Market value	$218.3B	$56.1B	$70.5B
Revenue (last 12 months)	$10.5B	$6.0B	$11.8B
EBITDA (last 12 months)	$4.6B	$910M	$2.5B
Net income (last 12 months)	$533M	$727M	$1.7B
Free cash flow (last 12 months)	$5.2B	$970M	$2.7B

Metric	ANET	Peers	Sector
Revenue growth, last year	+28.6%	+11.8%	+13.7%
Revenue growth, 3 years a year	+27.1%	+8.6%	+9.5%
EPS growth, 3 years a year	+37.0%	+9.9%	+5.6%
Free cash flow growth, 3 years a year	+111.7%	+24.2%	+15.3%
Dividend growth	–	–	+5.8%

Metric	ANET	Peers	Sector
Gross margin	63.0%	52.0%	57.5%
EBITDA margin	44.0%	24.3%	26.7%
Operating margin	43.1%	24.3%	20.1%
Net margin	5.1%	17.4%	18.5%
Return on invested capital	253.4%	20.3%	19.2%
Return on equity	3.6%	21.4%	21.4%

Metric	ANET	Peers	Sector
Net debt / EBITDA	–	0.9x	0.8x
Interest cover	50.0x	10.6x	21.8x
Current ratio	3.0x	1.7x	1.6x
Piotroski F-score (0 to 9)	4	7	6

Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.

Factor ratings for ANET

Each factor is rated by where ANET stands among the 75 Information Technology stocks in our universe.

Rating against the sector

Goodthe top third of these stocks

Averagethe middle third of these stocks

Badthe bottom third of these stocks

"Beats" is the share of those stocks it is ahead of.

Against its own history

The last columns set today's figure against the company's own median of its last five financial years:

▲ Betterbetter than its usual level

▼ Worseworse than its usual level

≈ In linewithin its usual range

For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.

In total: 11 Good · 1 Average · 10 Bad of 22 Growth: 3 · 0 · 0 Profitability: 2 · 1 · 2 Financial strength: 2 · 0 · 1 Valuation: 0 · 0 · 5 Cash flow: 4 · 0 · 0 Efficiency: 0 · 0 · 2

Factor	ANET	Rating	Sector median	Own 5-year median	Against own history
Growth
Revenue growth, 3 years a year	+27.1%	Good beats 90%	+9.7%	–	–
Revenue growth, last year	+28.6%	Good beats 85%	+13.7%	+28.6%	≈ In line
EPS growth, 3 years a year	+37.0%	Good beats 89%	+5.9%	–	–
Profitability
Gross margin	63.0%	Average beats 58%	57.8%	63.8%	≈ In line
Operating margin	43.1%	Good beats 89%	20.3%	38.5%	▲ Better
Net margin	5.1%	Bad beats 14%	17.8%	0.0%	▲ Better
Return on invested capital	253.4%	Good beats 97%	19.4%	–	–
Return on equity	3.6%	Bad beats 9%	21.0%	0.0%	▲ Better
Financial strength
Interest cover	50.0x	Good beats 75%	23.0x	–	–
Current ratio	2.96	Good beats 83%	1.57	4.34	▼ Worse
Piotroski F-score	4 / 9	Bad beats 9%	6 / 9	–	–
Valuation
P/E ratio	409.4x	Bad beats 5%	33.6x	41,697,641.6x	▲ Better
Price / book	14.8x	Bad beats 28%	8.3x	11.9x	▼ Worse
Price / sales	20.7x	Bad beats 7%	6.9x	15.7x	▼ Worse
EV / EBITDA	44.2x	Bad beats 23%	24.7x	–	–
Free cash flow yield	2.4%	Bad beats 32%	3.4%	2.6%	≈ In line
Cash flow
Free cash flow margin	48.9%	Good beats 95%	22.3%	34.1%	▲ Better
Cash from operations / net income	9.95	Good beats 97%	1.39	1,207,914.39	▼ Worse
Free cash flow growth, 3 years a year	+111.7%	Good beats 94%	+15.4%	–	–
Accruals (lower is better)	−20.1%	Good beats 98%	−4.4%	–	–
Efficiency
Inventory turnover	1.5x	Bad beats 3%	3.9x	1.4x	≈ In line
Days sales outstanding	78 days	Bad beats 27%	63 days	64 days	▼ Worse

These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.

Fundamentals checklist

● 10 Good · ● 2 Average · ● 3 Bad

Cash quality

Earnings backed by cashGood

Free-cash-flow yieldBad

Risk models

Altman Z''Good

Piotroski F-ScoreBad

Growth

EPS growth (3y)Good

Free-cash-flow growth (3y)Good

Revenue growth (3y)Good

Growth consistencyGood

Balance sheet

Current ratioGood

Interest coverGood

Valuation

Fair value vs priceAverage

EBIT / EV yieldBad

Profitability

Return on invested capitalGood

Operating marginGood

Gross profitabilityAverage

Each check is graded against the company's sector, not a fixed number. Checklist score 69/100.

Financials

	FY21	FY22	FY23	FY24	FY25
Revenue	$2.9B	$4.4B	$5.9B	$7.0B	$9.0B
Operating income	$925M	$1.5B	$2.3B	$2.9B	$3.9B
Net income	$841	$1,352	$2,087	$2,852	$3,511
Operating cash flow	$1.0B	$493M	$2.0B	$3.7B	$4.4B
Operating margin	31.4%	34.9%	38.5%	42.0%	42.8%
Free cash flow	$951M	$448M	$2.0B	$3.7B	$4.3B
Diluted EPS	$2.63	$1.07	$1.65	$2.23	$2.75

Fiscal years, from SEC filings.

Technical summary

Daily

Bearish

5 bullish · 1 neutral · 10 bearish

Weekly

Neutral

6 bullish · 1 neutral · 5 bearish

Monthly

Strongly bullish

7 bullish · 1 neutral · 0 bearish

Moving averages (daily)

SMA 10	191.0	Bearish
EMA 10	187.6	Bearish
SMA 20	199.4	Bearish
EMA 20	193.7	Bearish
SMA 50	197.0	Bearish
EMA 50	193.8	Bearish
SMA 100	184.9	Bearish
EMA 100	185.0	Bearish
SMA 200	163.6	Bullish
EMA 200	169.4	Bullish

Oscillators (daily)

RSI (14)	32.41	Neutral
MACD (12, 26)	-5.42	Bearish
Momentum (12)	-20.57	Bearish
Stochastic %K (14)	2.52	Bullish
Williams %R (14)	-97.48	Bullish
CCI (20)	-153.2	Bullish

Pivot points (classic, last session)

158.9

164.4

167.7

Pivot

173.2

176.6

182.1

185.4

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

ETFs that hold ANET

ETF	Share of the fund
IYZ iShares U.S. Telecommunications	11.01%
FDN First Trust Dow Jones Internet Index	5.02%
SKYY First Trust Cloud Computing	4.18%
GRNY Fundstrat Granny Shots US Large Cap	2.92%
TRFK Pacer Data and Digital Revolution	2.86%
QGRO American Century U.S. Quality Growth	2.84%
XNTK SPDR Morgan Stanley Technology	2.77%
ARTY iShares Future AI & Tech	2.43%

The eight funds with the largest weight in ANET among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.