ANET Arista Networks
$178.37
▼ 3.9%Updated Oct 16, 2:25 PM ET
Report Card
ANET at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Strong · 77/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 88.0% in the year to Jul 6, 2026
Key Metrics
Market Cap
$201.46B
P/E
60.99x
Forward P/E (est.)
49.38x
ROE
30.6%
Revenue Growth
30.6%
EPS Growth
23.5%
Profit Margin
38.3%
FCF Yield
3.7%
Debt / Equity
0x
ROIC
21.0%
Interest Coverage
—
Current Ratio
2.96x
Dividend Yield
—
Implied Growth (rev. DCF)
6.7%
Rating Score
77/100
Business Overview
Arista Networks (ANET) is a mega-cap company in the Communications Equipment industry, part of the Information Technology sector of the S&P 500, with a market value around $201.46B.
In its latest reported year it generated about $9.01B in revenue and $3.51B in net profit.
Our model rates ANET Strong (77/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (10 years of history).
Profit margins and economic moats, explainedThe filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
63.4% average over the last 3 years
±1.0 pts around 63.5% across 10 years
grew in 8 of the last 9 year-over-year periods
positive in 10 of 10 years
21.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ANET's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ANET trades near $178.37, above its 50-day average ($159.80) and 200-day average ($143.12). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 52 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. ANET's is $9.05 (~5.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, ANET found buyers near $145.32 (support) and sellers near $175.20 (resistance); its 52-week range then was $97.14–$179.80. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.2× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
32.2%
Revenue moved from $1.13B in 2016 to $9.01B in 2025, a 25.9% compound annual growth rate. The most recent year grew a strong 30.6% year over year. Consistent top-line growth is one sign of healthy demand.
Profitability
Gross Margin
64.1%
Operating Margin
42.8%
Net Margin
39.0%
ROE
30.6%
Arista Networks keeps about 38.3% of each sales dollar as net profit, with a 64.1% gross margin and 42.8% operating margin. Return on equity is 30.6% and return on invested capital about 21.0%. Margins this wide usually signal pricing power or a cost advantage.
Debt Analysis
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
0x
Leverage: debt-to-equity is 0.0x, with a current ratio of 3.0x. That is a conservative balance sheet — a cushion in downturns.
Cash Flow Analysis
Operating CF
$4.37B
Free Cash Flow
$4.25B
FCF Margin
47.2%
In the latest year Arista Networks produced about $4.37B of operating cash flow and $4.25B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.7% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Valuation Analysis
P/E
60.99x
P/S
23.73x
P/B
14.16x
EV / EBITDA
—
ANET trades at 61.0x trailing earnings (about 49.4x on estimated forward earnings), 23.7x sales, and 14.2x book value. Reverse-engineering today's price implies the market expects roughly 6.7% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
$139.62
Current price
$178.37
Starting FCF (latest 10-K)
$4.25B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where ANET sits versus the Information Technology companies we cover.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How ANET stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
Among the 98 rated Information Technology companies we cover, ANET ranks #13 by our overall rating. It trades at a premium versus the sector on earnings (61x P/E vs. 36.2x median) with a higher return on equity (30.6% vs. 17.5%) and faster revenue growth (30.6% vs. 17.7%).
P/E vs sector
61x
median 36.2x
ROE vs sector
30.6%
median 17.5%
Growth vs sector
30.6%
median 17.7%
Sector rank
#13
of 98 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 98 rated companies among the 230 Information Technology stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$443.89 – $731.82
vs. $178.37 today · implied CAGR 20% – 33%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $11.80B | $15.45B | $20.25B | $26.52B | $34.74B |
| Net income | $4.60B | $6.03B | $7.90B | $10.34B | $13.55B |
| EPS | $4.07 | $5.34 | $6.99 | $9.16 | $12.00 |
| Share price (low) | $150.73 | $197.45 | $258.66 | $338.85 | $443.89 |
| Share price (high) | $248.49 | $325.53 | $426.44 | $558.64 | $731.82 |
| CAGR (low–high) | -15% / 39% | 5% / 35% | 13% / 34% | 17% / 33% | 20% / 33% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for ANET:
- Revenue is growing 30.6% a year, a sign of real demand.
- High net margins (38.3%) point to pricing power or efficiency.
- Strong return on equity (30.6%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.0x) lowers risk.
- Our model's overall read is Strong (77/100).
Bear Case
The case against ANET:
- A rich 61.0x earnings multiple prices in a lot of growth.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Valuation risk — at 61.0x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen favourably: Arista Networks is a mega-cap information technology business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 61.0x earnings, which our model scores Strong (77/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 35 Wall Street analysts covering ANET recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+3 pts of buy ratings).
Latest SEC Filings
ANET's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
ANET — frequently asked questions
Is ANET a good stock to buy?
We don't give buy or sell advice. Our model rates Arista Networks Strong (77/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ANET's rating on The Stocks School?
Arista Networks currently scores 77/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ANET's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Arista Networks's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ANET calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this ANET analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ANET. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.