ANET Stock Analysis: Arista Networks | NYSE
Computer Hardware | NYSE, USA | Market Cap: 234.058m USD | 12M Return: 23.7% | US0404132054 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.02B
EPS Trend: 99.9%
Qual. Beats: 16
Rev. Trend: 99.4%
Qual. Beats: 9
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: 4.04b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.22 > 0.02 and ΔFCF/TA -2.31 > 1.0 |
| NWC/Revenue: 126.6% < 20% (prev 118.9%; Δ 7.72% < -1%) |
| CFO/TA 0.22 > 3% & CFO 5.31b > Net Income 4.04b |
| Net Debt (-13.3b) to EBITDA (5.08b): -2.62 < 3 |
| Current Ratio: 2.96 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.27b) vs 12m ago 0.29% < -2% |
| Gross Margin: 63.00% > 18% (prev 64.24%; Δ -1.23% > 0.5%) |
| Asset Turnover: 52.37% > 50% (prev 48.09%; Δ 4.28% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.56 (Total Current Assets 20.2b - Total Current Liabilities 6.82b) / Total Assets 23.7b |
| B: 0.49 (Retained Earnings 11.7b / Total Assets 23.7b) |
| C: 0.25 (EBIT TTM 4.99b / Avg Total Assets 20.1b) |
| D: 1.66 (Book Value of Equity 14.8b / Total Liabilities 8.92b) |
| Altman-Z'' = 8.70 = AAA |
| DSRI: 1.05 (Receivables 2.27b/1.62b, Revenue 10.5b/7.95b) |
| GMI: 1.02 (GM 64.24% / 63.00%) |
| AQI: 0.79 (AQ_t 0.14 / AQ_t-1 0.17) |
| SGI: 1.33 (Revenue 10.5b / 7.95b) |
| TATA: -0.05 (NI 4.04b - CFO 5.31b) / TA 23.7b) |
| Beneish M = -2.86 (Cap -4..+1) = A |
As of October 18, 2026, the stock is trading at USD 176.98 with a total of 6,839,477 shares traded. Over the past week, the price has changed by -18.34%, over one month by -11.30%, over three months by +4.96% and over the past year by +23.68%.
Current recommended Stop Loss: 166.10 (which is 6.1% or 1.3 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 | 245.1 | 38.5% |
P/E Trailing = 58.5426
P/E Forward = 39.2157
P/S = 22.205
P/B = 17.342
P/EG = 1.5225
Revenue TTM = 10.5b USD
EBIT TTM = 4.99b USD
EBITDA TTM = 5.08b USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 48.0m USD (Leases only: 48.0m)
Net Debt = -13.3b USD (calculated: Debt 48.0m - CCE 13.3b)
Enterprise Value = 221b USD (234b + Debt 48.0m - CCE 13.3b)
Interest Coverage Ratio = unknown (Ebit TTM 4.99b / Interest Expense TTM 0.0)
EV/FCF = 42.82x (Enterprise Value 221b / FCF TTM 5.16b)
FCF Yield = 2.34% (FCF TTM 5.16b / Enterprise Value 221b)
FCF Margin = 48.91% (FCF TTM 5.16b / Revenue TTM 10.5b)
Net Margin = 38.37% (Net Income TTM 4.04b / Revenue TTM 10.5b)
Gross Margin = 63.00% ((Revenue TTM 10.5b - Cost of Revenue TTM 3.90b) / Revenue TTM)
Gross Margin QoQ = 62.93% (prev 61.90%)
Tobins Q-Ratio = 9.31 (Enterprise Value 221b / Total Assets 23.7b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 48.0m)
Taxrate = 18.95% (945.6m / 4.99b)
NOPAT = 4.04b (EBIT 4.99b * (1 - 18.95%))
Current Ratio = 2.96 (Total Current Assets 20.2b / Total Current Liabilities 6.82b)
Debt / Equity = 0.00 (Debt 48.0m / totalStockholderEquity, last quarter 14.8b)
Debt / EBITDA = -2.62 (Net Debt -13.3b / EBITDA 5.08b)
Debt / FCF = -2.58 (Net Debt -13.3b / FCF TTM 5.16b)
Total Stockholder Equity = 13.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 20.10% (Net Income 4.04b / Total Assets 23.7b)
RoE = 30.78% (Net Income TTM 4.04b / Total Stockholder Equity 13.1b)
RoCE = 29.52% (EBIT 4.99b / Capital Employed (Total Assets 23.7b - Current Liab 6.82b))
RoIC = 24.70% (NOPAT 4.04b / Invested Capital 16.4b)
WACC = 14.34% (E(234b)/V(234b) * Re(14.34%) + D(48.0m)/V(234b) * Rd(0.0%) * (1-Tc(0.19)))
Discount Rate = 14.34% (= CAPM, Blume Beta Adj.) -> capped to 12.54%
Shares (quarterly) Correlation: -68.32 | Cagr: -0.16%
[DCF] Terminal Value 61.08% ; FCFF base≈4.68b ; Y1≈5.37b ; Y5≈7.90b
[DCF] Fair Price = 56.00 (EV 57.3b - Net Debt -13.3b = Equity 70.6b / Shares 1.26b; r=14.34% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.86 | EPS CAGR: 31.00% | SUE: 4.0 | # QB: 16
Revenue Correlation: 99.35 | Revenue CAGR: 25.66% | SUE: 4.0 | # QB: 9
EPS current Quarter (2026-09-30): EPS=1.08 | Chg30d=+0.20% | Revisions=+25% | Analysts=26
EPS current Year (2026-12-31): EPS=4.12 | Chg30d=+0.10% | Revisions=+0% | GrowthEPS=+38.1% | GrowthRev=+40.8%
EPS next Year (2027-12-31): EPS=5.22 | Chg30d=+1.20% | Revisions=+40% | GrowthEPS=+26.9% | GrowthRev=+29.0%
[Analyst] Revisions Ratio: +50% (up=3, down=0)