Arista Networks, Inc.ANET
NYSE•Technology•Computer Hardware
Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for AI, data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications. The company offers data center, cloud and AI networking, cognitive adjacencies, and cognitive network software and services. It also provides post contract customer support services, such as technical support, hardware repair and replacement parts beyond standard warranty, bug fixes, patches, and upgrade services. The company serves a range of industries comprising internet companies, cloud service providers, financial services organizations, government agencies, media and entertainment, healthcare, oil and gas, education, manufacturing, industrial, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. Arista Networks, Inc. was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. The company was incorporated in 2004 and is headquartered in Santa Clara, California.
as of March 2026
Are revenues and earnings expanding?
$9.71B in TTM revenue grew 30.6% YoY, reaching $2.71B last quarter. TTM EBITDA of $4.24B on operating income of $1.16B shows growth is flowing through. Net income of $3.72B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 42.7% is down 0.1% YoY — costs are rising relative to revenue. Net margin at 37.8% and gross margin of 61.9%. ROE of 27.6% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 57.4x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 22.0x and P/B of 15.8x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
Is the business self-funding?
FCF of $1.64B on $1.69B in operating cash flow. The FCF / Net Income ratio of 0.4x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $2.79B provide financial flexibility. Share count is stable — no dilution or buyback activity.
Competitive analysis based on 48 quarters of fundamental data
Operating margins are stable at ~42.5%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 28.8% suggests a durable competitive advantage and efficient capital allocation.
Data-driven red flags and warnings across 48 quarters
Margins are stable or improving at ~42.8% — no sign of cost or pricing stress.
FCF covers net income by 1.3x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~53.8% growth over the period. Strong demand durability.