Arista Networks, Inc. (ANET) AI Stock Analysis

Arista Networks, Inc., headquartered in Santa Clara, California, develops, markets, and distributes cloud networking solutions globally. Its portfolio includes extensible operating systems, advanced network applications, and high-performance gigabit Ethernet switching and routing platforms designed for internet companies, financial services firms, government agencies, media enterprises, and telecommunications providers. The company also delivers post-contract customer support services such as technical assistance, hardware repair, parts replacement beyond standard warranty coverage, software bug fixes, patches, and upgrades. Arista Networks reaches clients via direct sales, distributors, system integrators, value-added resellers, and original equipment manufacturer partners.

Annual revenue grew from $2.95B in FY2021 to $4.38B in FY2022, $5.86B in FY2023, $7.00B in FY2024, and $9.01B in FY2025, reflecting a 5-year revenue CAGR of 31.2% from FY2020 to FY2025. Over that period, net income rose from $840.9M in FY2021 to $3.51B in FY2025, with net margin improving from 28.5% to 39.0%. For the trailing twelve months, revenue reached $10.54B with an operating margin of 45.4% and diluted EPS of $3.17. In the latest quarter ended June 30, 2026, quarterly revenue grew 37.7% year-over-year, while quarterly earnings increased 35.7%.

As of June 30, 2026, Arista Networks held $13.34B in cash and short-term investments, with total assets of $23.72B and shareholders' equity of $14.80B. The company maintained a current ratio of 2.96. In FY2025, operating cash flow reached $4.37B and free cash flow was $4.25B. Cash deployment in FY2025 included $119.5M in capital expenditures and $1.60B allocated to share buybacks, with the 5-year share count decreasing by 0.3%.

Arista Networks trades at a trailing P/E of 55.8x and a forward P/E of 39.2x, compared to the median of its S&P 500 Technology peers at 30.8x and 20.3x, respectively. Its price-to-sales ratio stands at 21.2x against the peer median of 6.2x, while EV/EBITDA is 52.4x versus 19.5x. Over the past year, the stock returned 21.2%, exceeding the S&P 500 return of 16.8%. Over a 5-year horizon, the stock gained 626.5%, outperforming the index return of 83.0%.

Analyst coverage includes 24 Strong Buy, 7 Buy, and 1 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target of $245.14 represents a 38.5% premium to the last close of $176.98 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates anticipate revenue of $12.68B and EPS of $4.12, reflecting 38.1% earnings growth. The company beat EPS estimates in each of the last 4 quarters, with the next earnings date set for November 3, 2026.

This page is an AI-written research summary of Arista Networks, Inc. (ANET). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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