Arista Networks (ANET)
Information Technology · $259B market cap · SEC CIK 0001596532
fundamentals score out of 100
Next reports on Nov 2, 2026, after the close, with analysts expecting $1.10 in earnings per share.
The case for ANET
- Revenue up 32.6% on the year.
- Earns 31% back on shareholder equity.
- Generated $4.3B of free cash flow in FY2025, 47% of revenue.
- 38% of revenue drops through to net profit.
- Has compounded revenue at 31.2% a year over five years.
- Carries essentially no debt.
The case against
- Very expensive at 64.1× earnings. Years of growth are already in the price.
- Priced at 24.6× sales, which leaves no room for a stumble.
- Swings harder than the market (beta 1.58).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 19 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 85 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 85 |
| Momentumhow the price has behaved lately | 86 |
| Stabilityhow violently it moves, what it owes and what it pays you | 63 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 64.1× |
|---|---|
| Price / book | 14.46× |
| Price / sales | 24.6× |
| Revenue growth (YoY) | +32.6% |
| EPS growth (YoY) | +24.7% |
| Gross margin | 63% |
| Operating margin | 43% |
| Net margin | 38% |
| Return on equity | 31% |
| Debt / equity | 0.00× |
| Current ratio | 2.96 |
| Dividend yield | none |
| Beta | 1.58 |
| 52-week range | $114.52 – $214.89 |
| Position in that range | 90% of the way up |
| 3-month return | +21.1% |
| 1-year return | +37.3% |
Five years of financials, as filed
Pulled from Arista Networks's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $9.0B | $7.0B | $5.9B | $4.4B | $2.9B |
| Gross profit | $5.8B | $4.5B | $3.6B | $2.7B | $1.9B |
| Operating income | $3.9B | $2.9B | $2.3B | $1.5B | $925M |
| Net income | $4K | $3K | $2K | $1K | $841 |
| Operating cash flow | $4.4B | $3.7B | $2.0B | $493M | $1.0B |
| Capital expenditure | $120M | $32.0M | $34.4M | $44.6M | $64.7M |
| Total assets | $19.4B | $14.0B | $10.0B | $6.8B | $5.7B |
| Total liabilities | $7.1B | $4.0B | $2.7B | $1.9B | $1.8B |
| Shareholder equity | $12.4B | $10.0B | $7.2B | $4.9B | $4.0B |
| Cash | $2.0B | $2.8B | $1.9B | $672M | $621M |
| Free cash flow | $4.3B | $3.7B | $2.0B | $448M | $951M |
| Gross margin | 64.1% | 64.1% | 61.9% | 61.1% | 63.8% |
| Operating margin | 42.8% | 42.0% | 38.5% | 34.9% | 31.4% |
| Net margin | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Diluted shares | 1.3B | 1.3B | 1.3B | 1.3B | 1.3B |
Share count is essentially flat over 4 years. Counts are restated for stock splits so the years compare.
What Arista Networks says it does
In a world where data is increasingly a precious commodity and competitive differentiator, Arista was founded to enable our customers to access all their centers of data in the quickest, most reliable, and secure manner. Over the last two decades, we have emerged as an industry leader, delivering data-driven, client-to-cloud networking-as-a-service. Our "Centers of Data" strategy is a fundamental pivot from legacy networking approaches that create incongruent silos to a unified, data-driven approach in which the network is a service that interconnects four primary domains: AI Centers, Data Centers, Campus Centers, and WAN Centers. Anchored by Arista’s state-oriented Extensible Operating System (EOS) and Network Data Lake (NetDL), our network-as-a-service platform delivers a seamless, consolidated networking experience regardless of data location. Our solutions are differentiated because they: • offer uncompromising reliability…
Risk factors ANET lists in its 10-K
- Risks Related to Our Business and Industry
- Risks Related to Customers and Sales
- Risks Related to Products and Services
- Risks Related to Supply Chain and Manufacturing
- Risks Related to Intellectual Property and Other Proprietary Rights
- Risks Related to Cybersecurity and Data Privacy
- Risks Related to Accounting, Compliance, Regulation and Tax
- Risks Related to Ownership of Our Common Stock
- Some of the key components in our products come from sole or limited sour
- We expect large purchases by a limited number of customers to continue to represent a substantial p
- ortion of our revenue, and any loss, delay, decline or other change in expected purchases could result in material quarter-to-quarter fluctuations of our revenue or otherwise adversely affect our results of operations
- Escalated or escalating U.S. tariffs, as well as countermeasures and retaliatory actions taken by other countries, may have a negative effect on global economic conditions, financial markets and our business
- Our revenue and revenue growth rates are volatile and may decline or not meet our or our investors' expectations
- We expect our gross margins to vary over time and may be adversely affected by numerous factors