Arista Networks (ANET)

Information Technology · $235B market cap · SEC CIK 0001596532

Next reports on Feb 10, 2027, after the close, with analysts expecting $1.30 in earnings per share.

52-week range $114.52 to $217.41. 15% below its 52-week high and 62% above its low.

The case for ANET

• Revenue up 40.7% on the year.
• Earns 33% back on shareholder equity.
• Generated $4.3B of free cash flow in FY2025, 47% of revenue.
• 40% of revenue drops through to net profit.
• Earnings per share up 41.7%.
• Has compounded revenue at 31.2% a year over five years.

The case against

• Swings harder than the market (beta 1.62).
• Price/sales of 19.8× is higher than 96% of Information Technology companies.

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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from Arista Networks's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

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 derived…

Risk factors ANET lists in its 10-K

• 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
• We pursue new product and service offerings and expand into adjacent markets, and if we fail to successfully carry out these initiatives, our business, financial condition, or results of operations could be adversely impacted
• We face intense competition, especially from larger, well-established companies and industry consolidation may lead to increased competition, which may harm our business, financial condition, results of operations and prospects
• We are subject to a number of risks associated with the expansion of our international sales and operations
• We are exposed to fluctuations in currency exchange rates, which could adversely affect our business, financial condition, results of operations and prospects
• If we are unable to increase market awareness or acceptance of our new products and services, our revenue may not continue to grow or may decline
• The sales prices of our products and services may decrease, which may reduce our gross profits and adversely affect our results of operations
• If we are unable to offer high-quality support and services offerings, this could adversely affect our business, financial condition, results of operations and prospects
• Declines in maintenance renewals and support contracts by customers could harm our future business, financial condition, results of operations and prospects
• A portion of our revenue is generated by sales to government entities, which are subject to a number of challenges and risks
• We are exposed to the credit risk of our channel partners and some of our customers, which could result in material losses
• Product quality problems, defects, errors or vulnerabilities in our products or services could harm our reputation and adversely affect our business, financial condition, results of operations and prospects
• Insufficient component supply and inventory management and the time to manufacture our products may result in los
• t sales opportunities or delayed revenue, while excess inventory may harm our gross margins
• We are susceptible to manufacturing delays and pricing fluctuations that could prevent us from shipping end-customer orders on time, if at all, or on a cost-effective basis, which may result in the loss of sales and customers
• We base our inventory requirements on our forecasts for future sales. If these demand forecasts materially change from our initial projections, we may procure inventory that we may be unable to use in a timely manner or at all
• Interruptions or delays in shipments could cause our revenue for the applicable period to fall below expected levels
• If we are unable to protect our intellectual property rights, our competitive position could be harmed or we could be required to incur significant expenses to enforce our rights
• We rely on the availability of licenses to third-party software and other intellectual property
• Our products contain third-party open source software components, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to sell our products
• We provide access to our software and other selected source code to certain partners, which creates additional risk that our competitors could develop products that are similar to or better than ours
• Foreign investment laws and regulations, and other trade or regulatory barriers, may have a negative effect on global economic conditions, financial markets and our business
• If we fail to maintain effective internal control over financial reporting in the future, the accuracy and timing of our financial reporting may be adversely affected
• Failure to comply with governmental laws and regulations, including privacy laws, environmental laws and export controls, could harm our business
• Issues in the development and use of artificial intelligence, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations
• The trading price of our common stock has been and may continue to be volatile, and the value of your investment could decline
• Insiders have substantial control over us, which could limit your ability to influence the outcome of key transactions, including a change of control
• Our charter documents and Delaware law could discourage takeover attempts and lead to management entrenchment
• We may become involved in litigation that may materially adversely affect us
• If we are unable to hire, retain, train and motivate qualified personnel and senior management, our business, financial condition, results of operations and prospects could suffer
• Our business is subject to the risks of natural disasters, social unrest, violent conflicts, systemic failures and other catastrophic events
• We have not paid dividends in the past and do not intend to pay dividends for the foreseeable future

Filings

Other Information Technology companies