ANET Stock Analysis: Arista Networks | NYSE
Computer Hardware | NYSE, USA | Market Cap: 251.652m USD | 12M Return: 44.4% | US0404132054 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 899M
EPS Trend: 99.9%
Qual. Beats: 16
Rev. Trend: 99.4%
Qual. Beats: 9
Warnings
No concerns identified
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.-headquartered networking equipment company that designs, markets, and sells data-driven, client-to-cloud networking solutions spanning data center, AI, campus, and routing environments. Its core offering is the Extensible Operating System (EOS), a publish-subscribe networking platform paired with a suite of network applications, which is delivered alongside high-performance Ethernet switches. The company also sells adjacent software, services, and post-contract support such as technical support, hardware repair, and software updates.
Arista sells to a broad customer base that includes hyperscale cloud service providers, internet companies, financial services firms, government agencies, media and entertainment, healthcare, oil and gas, education, and industrial organizations, with geographic reach across the Americas, EMEA, and Asia-Pacific. The company goes to market through a mix of direct sales and indirect channels, including distributors, system integrators, value-added resellers, and OEM partners.
Arista was incorporated in 2004 in Santa Clara, California, was originally named Arastra, Inc., and rebranded to Arista Networks in October 2008 before its 2014 IPO. As a GICS-classified Communications Equipment vendor within Information Technology, it operates in the data center and cloud infrastructure market, competing primarily with legacy networking vendors such as Cisco and Juniper in the high-speed Ethernet switching segment that underpins modern AI and hyperscale cloud build-outs.
- AI hyperscaler capex surge drives data center switching demand
- Microsoft concentration risk pressures revenue diversification
- Cisco rivalry intensifies in AI fabric switching market
| 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 (5.11b): -2.60 < 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 September 27, 2026, the stock is trading at USD 206.55 with a total of 4,349,414 shares traded. Over the past week, the price has changed by +3.59%, over one month by +8.18%, over three months by +24.84% and over the past year by +44.38%.
Current recommended Stop Loss: 195.20 (which is 5.5% or 1.5 ATR below the current price).
Arista Networks has received a consensus analysts rating of 4.70. Therefore, it is recommended to buy ANET.
- StrongBuy: 22
- Buy: 7
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 241 | 16.7% |
P/E Trailing = 62.5486
P/E Forward = 38.1679
P/S = 23.8741
P/B = 16.8366
P/EG = 1.4781
Revenue TTM = 10.5b USD
EBIT TTM = 4.99b USD
EBITDA TTM = 5.11b 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 = 238b USD (252b + Debt 48.0m - CCE 13.3b)
Interest Coverage Ratio = unknown (Ebit TTM 4.99b / Interest Expense TTM 0.0)
EV/FCF = 46.24x (Enterprise Value 238b / FCF TTM 5.16b)
FCF Yield = 2.16% (FCF TTM 5.16b / Enterprise Value 238b)
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 = 10.05 (Enterprise Value 238b / 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 = -2.60 (Net Debt -13.3b / EBITDA 5.11b)
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 = 14.93% (E(252b)/V(252b) * Re(14.93%) + D(48.0m)/V(252b) * Rd(0.0%) * (1-Tc(0.19)))
Discount Rate = 14.93% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -68.32 | Cagr: -0.16%
[DCF] Terminal Value 59.66% ; FCFF base≈4.68b ; Y1≈5.37b ; Y5≈7.90b
[DCF] Fair Price = 53.74 (EV 54.5b - Net Debt -13.3b = Equity 67.8b / Shares 1.26b; r=14.93% [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=-0.02% | Revisions=+88% | Analysts=25
EPS current Year (2026-12-31): EPS=4.11 | Chg30d=-0.01% | Revisions=+90% | GrowthEPS=+38.0% | GrowthRev=+40.6%
EPS next Year (2027-12-31): EPS=5.16 | Chg30d=+0.01% | Revisions=+90% | GrowthEPS=+25.5% | GrowthRev=+27.6%
[Analyst] Revisions Ratio: +96% (up=75, down=0)