ANET Stock Analysis: Arista Networks | NYSE
Computer Hardware | NYSE, USA | Market Cap: 225.103m USD | 12M Return: 27.4% | US0404132054 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.27B
EPS Trend: 99.8%
Qual. Beats: 17
Rev. Trend: 99.1%
Qual. Beats: 10
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Arista Networks (NYSE: ANET) is a U.S.-based networking equipment vendor classified within the GICS Communications Equipment sub-industry. The company designs, markets, and sells data-driven, client-to-cloud networking solutions serving AI, data center, campus, and routing environments across the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Incorporated in 2004 and headquartered in Santa Clara, California, Arista was originally named Arastra, Inc. before adopting its current name in October 2008.
At the core of its offering is the Extensible Operating System (EOS), a publish-subscribe networking platform that runs alongside a set of network applications - a software-anchored business model that pairs proprietary operating software with the companys switching and routing hardware. Its commercial portfolio spans data center, cloud and AI networking, cognitive adjacencies, and related software and services, supported by post-contract services such as technical support, hardware repair and replacement, bug fixes, patches, and upgrades.
Arista serves a broad mix of customers, including internet companies, cloud service providers, financial services firms, government agencies, and organizations in media, healthcare, oil and gas, education, and manufacturing. It reaches these end markets through a multi-channel go-to-market approach, combining distributors, system integrators, value-added resellers, and OEM partners with its own direct sales force.
- Hyperscaler AI capex surge boosts data center switch revenue
- Microsoft customer concentration creates revenue dependency risk
- Cisco competition pressures enterprise switching market share
| Net Income: 4.75b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.20 > 0.02 and ΔFCF/TA -2.56 > 1.0 |
| NWC/Revenue: 129.6% < 20% (prev 124.5%; Δ 5.11% < -1%) |
| CFO/TA 0.21 > 3% & CFO 5.24b > Net Income 4.75b |
| Net Debt (-14.3b) to EBITDA (5.92b): -2.42 < 3 |
| Current Ratio: 3.29 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.28b) vs 12m ago 0.13% < -2% |
| Gross Margin: 62.88% > 18% (prev 64.34%; Δ -1.46% > 0.5%) |
| Asset Turnover: 54.90% > 50% (prev 46.81%; Δ 8.09% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.61 (Total Current Assets 22.1b - Total Current Liabilities 6.72b) / Total Assets 25.3b |
| B: 0.52 (Retained Earnings 13.2b / Total Assets 25.3b) |
| C: 0.27 (EBIT TTM 5.83b / Avg Total Assets 21.7b) |
| D: 1.87 (Book Value of Equity 16.4b / Total Liabilities 8.82b) |
| Altman-Z'' = 9.48 = AAA |
| DSRI: 1.11 (Receivables 2.33b/1.49b, Revenue 11.9b/8.45b) |
| GMI: 1.02 (GM 64.34% / 62.88%) |
| AQI: 0.73 (AQ_t 0.11 / AQ_t-1 0.15) |
| SGI: 1.41 (Revenue 11.9b / 8.45b) |
| TATA: -0.02 (NI 4.75b - CFO 5.24b) / TA 25.3b) |
| Beneish M = -2.78 (Cap -4..+1) = A |
As of November 07, 2026, the stock is trading at USD 170.80 with a total of 11,975,777 shares traded. Over the past week, the price has changed by +1.15%, over one month by -20.69%, over three months by -11.19% and over the past year by +27.44%.
Current recommended Stop Loss: 150.50 (which is 11.9% or 2 ATR below the current price).
Arista Networks has received a consensus analysts rating of 4.72. Therefore, it is recommended to buy ANET.
- StrongBuy: 24
- Buy: 7
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 245.4 | 43.7% |
P/E Trailing = 47.8499
P/E Forward = 32.4675
P/S = 18.932
P/B = 14.4816
P/EG = 1.2568
Revenue TTM = 11.9b USD
EBIT TTM = 5.83b USD
EBITDA TTM = 5.92b USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 48.0m USD (Leases only: 48.0m)
Net Debt = -14.3b USD (calculated: Debt 48.0m - CCE 14.4b)
Enterprise Value = 211b USD (225b + Debt 48.0m - CCE 14.4b)
Interest Coverage Ratio = unknown (Ebit TTM 5.83b / Interest Expense TTM 0.0)
EV/FCF = 42.01x (Enterprise Value 211b / FCF TTM 5.02b)
FCF Yield = 2.38% (FCF TTM 5.02b / Enterprise Value 211b)
FCF Margin = 42.20% (FCF TTM 5.02b / Revenue TTM 11.9b)
Net Margin = 39.97% (Net Income TTM 4.75b / Revenue TTM 11.9b)
Gross Margin = 62.88% ((Revenue TTM 11.9b - Cost of Revenue TTM 4.41b) / Revenue TTM)
Gross Margin QoQ = 63.59% (prev 62.93%)
Tobins Q-Ratio = 8.34 (Enterprise Value 211b / Total Assets 25.3b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 48.0m)
Taxrate = 18.47% (1.08b / 5.83b)
NOPAT = 4.75b (EBIT 5.83b * (1 - 18.47%))
Current Ratio = 3.29 (Total Current Assets 22.1b / Total Current Liabilities 6.72b)
Debt / Equity = 0.00 (Debt 48.0m / totalStockholderEquity, last quarter 16.4b)
Debt / EBITDA = -2.42 (Net Debt -14.3b / EBITDA 5.92b)
Debt / FCF = -2.85 (Net Debt -14.3b / FCF TTM 5.02b)
Total Stockholder Equity = 14.3b (last 4 quarters mean from totalStockholderEquity)
RoA = 21.94% (Net Income 4.75b / Total Assets 25.3b)
RoE = 33.29% (Net Income TTM 4.75b / Total Stockholder Equity 14.3b)
RoCE = 31.43% (EBIT 5.83b / Capital Employed (Total Assets 25.3b - Current Liab 6.72b))
RoIC = 26.48% (NOPAT 4.75b / Invested Capital 17.9b)
WACC = 14.05% (E(225b)/V(225b) * Re(14.05%) + D(48.0m)/V(225b) * Rd(0.0%) * (1-Tc(0.18)))
Discount Rate = 14.05% (= CAPM, Blume Beta Adj.) -> capped to 12.54%
Shares (quarterly) Correlation: -56.29 | Cagr: -0.05%
[DCF] Terminal Value 61.79% ; FCFF base≈4.63b ; Y1≈5.31b ; Y5≈7.81b
[DCF] Fair Price = 57.45 (EV 58.1b - Net Debt -14.3b = Equity 72.5b / Shares 1.26b; r=14.05% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.84 | EPS CAGR: 31.51% | SUE: 2.13 | # QB: 17
Revenue Correlation: 99.05 | Revenue CAGR: 28.49% | SUE: 4.0 | # QB: 10
EPS current Quarter (2027-03-31): EPS=1.21 | Chg30d=+4.03% | Revisions=+25% | Analysts=19
EPS current Year (2026-12-31): EPS=4.34 | Chg30d=+5.64% | Revisions=+40% | GrowthEPS=+45.8% | GrowthRev=+42.3%
EPS next Year (2027-12-31): EPS=5.40 | Chg30d=+3.80% | Revisions=+50% | GrowthEPS=+24.3% | GrowthRev=+45.2%
[Analyst] Revisions Ratio: +67% (up=6, down=0)