(ANET) Arista Networks - Overview
Sector: Technology | Industry: Computer Hardware | Exchange: NYSE (USA) | Market Cap: 194.302m USD | Total Return: 62.1% in 12m
Avg Turnover: 1.66B
EPS Trend: 99.7%
Qual. Beats: 16
Rev. Trend: 99.5%
Qual. Beats: 8
Warnings
Volatile
Tailwinds
Pead, Confidence
Arista Networks provides data-driven networking solutions designed for high-performance computing environments, including AI workloads, cloud data centers, and campus networks. The company’s core technology is the Extensible Operating System (EOS), a software-defined networking platform that enables programmable automation and real-time visibility across distributed infrastructure.
The business model focuses on a software-first approach within the communications equipment sector, prioritizing interoperability and open standards over proprietary hardware lock-in. This strategy allows the company to serve high-bandwidth clients such as hyperscale cloud providers and financial institutions that require low-latency connectivity and rapid scalability.
A detailed review of the companys competitive positioning is available on ValueRay for further insight. Founded in 2004 and headquartered in Santa Clara, California, Arista generates revenue through a combination of hardware sales, software licensing, and multi-year customer support services.
- AI networking cluster deployments drive high-speed switching revenue growth
- Cloud titan capital expenditure cycles dictate core data center demand
- Campus and enterprise networking expansion diversifies revenue beyond hyperscalers
- Software-driven high margins sustain profitability despite hardware supply chain volatility
- Ethernet adoption in AI back-end fabrics challenges InfiniBand market dominance
| Net Income: 3.72b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.24 > 0.02 and ΔFCF/TA -1.71 > 1.0 |
| NWC/Revenue: 123.6% < 20% (prev 123.1%; Δ 0.45% < -1%) |
| CFO/TA 0.25 > 3% & CFO 5.42b > Net Income 3.72b |
| Net Debt (-12.3b) to EBITDA (4.24b): -2.90 < 3 |
| Current Ratio: 2.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.27b) vs 12m ago -0.42% < -2% |
| Gross Margin: 63.54% > 18% (prev 64.09%; Δ -0.55% > 0.5%) |
| Asset Turnover: 53.69% > 50% (prev 51.23%; Δ 2.45% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.55 (Total Current Assets 18.6b - Total Current Liabilities 6.56b) / Total Assets 21.7b |
| B: 0.48 (Retained Earnings 10.5b / Total Assets 21.7b) |
| C: 0.23 (EBIT TTM 4.16b / Avg Total Assets 18.1b) |
| D: 1.65 (Book Value of Equity 13.5b / Total Liabilities 8.17b) |
| Altman-Z'' = 8.49 = AAA |
| DSRI: 1.03 (Receivables 1.92b/1.44b, Revenue 9.71b/7.44b) |
| GMI: 1.01 (GM 64.09% / 63.54%) |
| AQI: 0.90 (AQ_t 0.13 / AQ_t-1 0.15) |
| SGI: 1.31 (Revenue 9.71b / 7.44b) |
| TATA: -0.08 (NI 3.72b - CFO 5.42b) / TA 21.7b) |
| Beneish M = -2.84 (Cap -4..+1) = A |
As of June 06, 2026, the stock is trading at USD 154.27 with a total of 9,017,896 shares traded.
Over the past week, the price has changed by -3.26%,
over one month by -9.37%,
over three months by +10.67% and
over the past year by +62.08%.
Arista Networks has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy ANET.
- StrongBuy: 15
- Buy: 7
- Hold: 5
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 188.2 | 22% |
P/E Trailing = 52.8459
P/E Forward = 42.9185
P/S = 20.0108
P/B = 14.4065
P/EG = 1.9844
Revenue TTM = 9.71b USD
EBIT TTM = 4.16b USD
EBITDA TTM = 4.24b USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 48.0m USD (Leases only: 48.0m)
Net Debt = -12.3b USD (calculated: Debt 48.0m - CCE 12.4b)
Enterprise Value = 182b USD (194b + Debt 48.0m - CCE 12.4b)
Interest Coverage Ratio = unknown (Ebit TTM 4.16b / Interest Expense TTM 0.0)
EV/FCF = 34.48x (Enterprise Value 182b / FCF TTM 5.28b)
FCF Yield = 2.90% (FCF TTM 5.28b / Enterprise Value 182b)
FCF Margin = 54.36% (FCF TTM 5.28b / Revenue TTM 9.71b)
Net Margin = 38.32% (Net Income TTM 3.72b / Revenue TTM 9.71b)
Gross Margin = 63.54% ((Revenue TTM 9.71b - Cost of Revenue TTM 3.54b) / Revenue TTM)
Gross Margin QoQ = 61.90% (prev 62.86%)
Tobins Q-Ratio = 8.40 (Enterprise Value 182b / Total Assets 21.7b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 48.0m)
Taxrate = 18.52% (845.6m / 4.57b)
NOPAT = 3.39b (EBIT 4.16b * (1 - 18.52%))
Current Ratio = 2.83 (Total Current Assets 18.6b / Total Current Liabilities 6.56b)
Debt / Equity = 0.00 (Debt 48.0m / totalStockholderEquity, last quarter 13.5b)
Debt / EBITDA = -2.90 (Net Debt -12.3b / EBITDA 4.24b)
Debt / FCF = -2.33 (Net Debt -12.3b / FCF TTM 5.28b)
Total Stockholder Equity = 12.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 20.57% (Net Income 3.72b / Total Assets 21.7b)
RoE = 30.58% (Net Income TTM 3.72b / Total Stockholder Equity 12.2b)
RoCE = 27.52% (EBIT 4.16b / Capital Employed (Total Assets 21.7b - Current Liab 6.56b))
RoIC = 23.17% (NOPAT 3.39b / Invested Capital 14.6b)
WACC = 13.98% (E(194b)/V(194b) * Re(13.98%) + D(48.0m)/V(194b) * Rd(0.0%) * (1-Tc(0.19)))
Discount Rate = 13.98% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -28.89 | Cagr: -0.06%
[DCF] Terminal Value 61.96% ; FCFF base≈4.68b ; Y1≈5.37b ; Y5≈7.90b
[DCF] Fair Price = 56.77 (EV 59.2b - Net Debt -12.3b = Equity 71.5b / Shares 1.26b; r=13.98% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.67 | EPS CAGR: 32.46% | SUE: 3.98 | # QB: 16
Revenue Correlation: 99.51 | Revenue CAGR: 24.16% | SUE: 2.87 | # QB: 8
EPS current Quarter (2026-06-30): EPS=0.88 | Chg30d=+2.90% | Revisions=+75% | Analysts=24
EPS next Quarter (2026-09-30): EPS=0.91 | Chg30d=+0.86% | Revisions=+50% | Analysts=23
EPS current Year (2026-12-31): EPS=3.63 | Chg30d=+2.32% | Revisions=+60% | GrowthEPS=+21.8% | GrowthRev=+28.8%
EPS next Year (2027-12-31): EPS=4.45 | Chg30d=+3.53% | Revisions=+68% | GrowthEPS=+22.6% | GrowthRev=+23.5%
[Analyst] Revisions Ratio: +75%