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Arista Networks

ANET COMPUTER COMMUNICATIONS EQUIPMENT Market cap $223.5B Share price × shares outstanding.
$177.24 ▲ +2.83%
+$4.87 on the day · as of 27 Oct 2026
68
S.I.F.T.™ score
Adequate
Rules-based score out of 100 across Safety, Income, Fundamentals and Time. Strong 80+, Adequate 60–79, Caution under 60. A band describes the score, not an action.
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S.I.F.T.™ pillars One or more pillars are only adequate.

Safety65
Strong balance sheet and competitive moat provide good downside protection.
Income50
High cyclicality and lack of recurring revenue are limiting stability.
Fundamentals95
Excellent growth combined with reasonable valuation.
Time45
Established company with good long-term positioning.
Last updated: 27 Oct 2026 · Model score (rules-based screen of the data shown; not advice or a forecast): 70%
Reality check (rules-based) S.I.F.T. band: Adequate

Strong (80+) · Adequate (60–79) · Caution (<60). A band describes the score, not an action.

The fundamentals pillar score of 95 is the highest while time in market at 45 is the lowest, with safety at 65 and income stability at 50. Supporting data include ROE 10yr avg of 30.78 and net debt to CFO of -0.46.

Strengths: Fundamentals pillar score of 95, ROE 10yr avg of 30.78, Net debt to CFO of -0.46
Risks: Income stability pillar score of 50, Time in market pillar score of 45, Dividend yield of 0, Cash to market cap of 0

For education and general information only. Not a recommendation to buy, sell, or hold. How the score is calculated

Price History

At its core

High returns on capital, operating margins that swing widely with the cycle and priced above its Graham number. Revenue has grown about 26.8% a year over 10 years.

Rule-based description of the figures below (FY2015–FY2025). Not a recommendation.
As of FY2025, period end 2025-12-31.

Business quality returns, margins, cash

Returns on capital, margins and cash generation, with how steady each has been.

ROE Return on equity: net income ÷ shareholders' equity at year end. Shows how much profit the business earns on the owners' capital. Very high values can come from a small equity base after buybacks. Moderate
28.4%
5-yr avg 26.9%
FY2015FY2025
ROIC Return on invested capital: operating income after tax ÷ (equity + debt − cash). Shows how well the business turns the capital tied up in it into profit. Variable
195.8%
5-yr avg 130.5%
FY2015FY2025
Gross margin Gross profit ÷ revenue. A high, steady gross margin can point to pricing power. Steady
64.1%
5-yr avg 63.0%
Operating margin Operating income ÷ revenue: what is left from each dollar of sales after running the business, before interest and tax. Variable
42.8%
5-yr avg 37.9%
FY2015FY2025
Free cash flow Operating cash flow − capital expenditure. The cash the business produced after keeping up and growing its assets.
$4.3B
FY2015FY2025
FCF margin Free cash flow ÷ revenue. Variable
47.2%
5-yr avg 35.3%
Owner earnings Owner earnings, simplified (1986 definition): net income + depreciation & amortisation − capital expenditure. Working-capital changes are left out.
$3.5B
Capital intensity Capital expenditure ÷ revenue. Lower means the business needs less reinvestment in plant and equipment to run and grow. Steady
1.3%
5-yr avg 1.1%

Balance sheet strength Cash and Debt Ledger

Net debt / EBITDA (Borrowings − cash and short-term investments) ÷ (operating income + D&A). Roughly how many years of operating earnings would repay net debt. Negative means more cash than debt.
—
not in data file
Debt / equity Reported borrowings ÷ shareholders' equity.
—
not in data file
Interest cover Operating income ÷ interest expense: how many times profit covers the interest bill. Graham looked for a wide cover.
—
not in data file
Current ratio Current assets ÷ current liabilities. Graham's rule of thumb for industrials was 2 or more.
3.0×
Cash & short-term investments Cash, cash equivalents and short-term investments on the latest annual balance sheet (the Cash side of the S.I.F.T. Cash and Debt Ledger).
$10.7B
Borrowings Short- and long-term debt and commercial paper on the latest annual balance sheet (the Debt side of the Cash and Debt Ledger). Leases and other liabilities are excluded.
—
not in data file

Graham value price vs fundamentals

P/E Price ÷ earnings per share (trailing four quarters where available, otherwise the last fiscal year). Not shown when earnings are negative.
55.9×
P/B Price ÷ book value per share (equity ÷ shares outstanding).
18.1×
Graham number Benjamin Graham's ceiling for a defensive investor: √(22.5 × EPS × book value per share), i.e. P/E 15 × P/B 1.5. Undefined when EPS or book value is negative.
$26.46
Graham margin of safety (Graham number − price) ÷ Graham number. Positive: price is below the Graham number. Negative: price is above it.
-569.9%
Earnings yield EPS ÷ price, the inverse of P/E. Graham compared it with the yield on high-grade bonds.
1.8%
vs 10-yr Treasury 4.96%
10-yr Treasury yield US 10-year Treasury yield on 2026-10-22, for comparison with the earnings yield.
5.0%
Dividend yield Cash dividends per share with ex-dates in the last 12 months ÷ price.
—
not in data file
Payout ratio Dividends paid ÷ net income for the last fiscal year.
—
not in data file
Dividend record Consecutive calendar years with a cash dividend in the dividend file. Graham asked for an unbroken record.
—
not in data file

Track record 11 fiscal years on file

Revenue CAGR Compound annual growth in revenue from the first to the last fiscal year shown.
26.8%
FY2015–FY2025
FY2015FY2025
EPS CAGR Compound annual growth in diluted EPS (net income ÷ diluted shares). Not defined when the start or end year is a loss.
38.5%
FY2015–FY2025
FY2015FY2025
FCF CAGR Compound annual growth in free cash flow. Not defined when the start or end year is negative.
37.2%
FY2015–FY2025
FY2015FY2025
Share count change Change in diluted weighted share count. Negative = fewer shares (buybacks); positive = dilution.
11.7%
FY2015–FY2025 · dilution
FY2015FY2025

Source: SEC filings as reported (XBRL) and market data. Figures are not restated for acquisitions or one-off items; share counts are adjusted for detected splits. “—” means the figure is not in the data file, never a zero. For education and general information only. Not a recommendation to buy, sell, or hold. How the score is calculated

The business

Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible operating system that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three-fourths of its sales from North America.

FAQ

Recent quarters three-month figures

QuarterPeriod endRevenueGross profitOperating incomeNet incomeEPS (diluted)
Q2 FY2026 2026-06-30 $3.0B$1.9B$1.4B$1.2B$0.95
Q1 FY2026 2026-03-31 $2.7B$1.7B$1.2B$1.0B$0.80
Q4 FY2025 2025-12-31 $2.5B$1.6B$1.0B$955.8M$0.75
Q3 FY2025 2025-09-30 $2.3B$1.5B$978.2M$853.0M$0.67
Q2 FY2025 2025-06-30 $2.2B$1.4B$986.2M$888.8M$0.70
Q1 FY2025 2025-03-31 $2.0B$1.3B$858.8M$813.8M$0.64
Q4 FY2024 2024-12-31 $1.9B$1.2B$799.7M$801.0M$0.63
Q3 FY2024 2024-09-30 $1.8B$1.2B$785.3M$747.9M$2.34

Quarter figures are derived from year-to-date filings (Q4 = full year − nine months). EPS = net income ÷ diluted shares for the period. — = not in data file.

Annual figures fiscal years, newest first

YearRevenueGross profitOperating incomeNet incomeEPS (diluted)Free cash flowEquityBorrowings
FY2025 $9.0B$5.8B$3.9B$3.5B$2.75$4.3B$12.4B—
FY2024 $7.0B$4.5B$2.9B$2.9B$2.23$3.7B$10.0B—
FY2023 $5.9B$3.6B$2.3B$2.1B$1.65$2.0B$7.2B—
FY2022 $4.4B$2.7B$1.5B$1.4B$1.07$448.2M$4.9B—
FY2021 $2.9B$1.9B$924.7M$840.9M$0.66$951.1M$4.0B—
FY2020 $2.3B$1.5B$699.7M$634.6M$0.50$719.7M$3.3B—
FY2019 $2.4B$1.5B$805.8M$859.9M$0.66$947.3M$2.9B—
FY2018 $2.2B$1.4B$273.3M$328.1M$0.25$479.3M$2.1B—
FY2017 $1.6B$1.1B$470.3M$423.2M$0.33$616.3M$1.7B—
FY2016 $1.1B$723.1M$243.4M$184.2M$0.16$110.0M$1.1B—
FY2015 $837.6M$543.6M$149.3M$121.1M$0.11$180.5M$788.2M—

As reported in each year's 10-K. Free cash flow = operating cash flow − capital expenditure. — = not in data file.