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Arista Networks Inc

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Arista Networks Inc
ANET Communications
$199.59 ▲ +5.61%
+$10.60 today · as of 12 Sep 2026
58 S.I.F.T
S.I.F.T.™ Analysis
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Adequate quality – monitor closely.
Last updated: 12 Sep 2026 · Confidence: 70%
Pillar Breakdown
🛡 Safety 65
Decent financial position but faces notable competition.
💰 Income 35
High cyclicality and lack of recurring revenue are limiting stability.
📊 Fundamentals 65
Strong growth but valuation is elevated.
⏱ Time 45
Established company with good long-term positioning.
🧠 Munger Reality Filter HOLD

Moderate competitive position in high-speed networking with software advantages but faces intense competition from larger players.

Strengths: ROE of 17.05% shows solid returns, Safety and fundamentals pillars both at 65, Large market cap exceeding $243B
Risks: Low income stability score of 35, Zero dividend yield and warchest, Debt to CFO ratio of 1.68 indicates moderate leverage
📈 Price History

Financial Details

Recent Quarters
Quarter Revenue Gross Profit EPS
No quarterly data available.
Segment Breakdown
Data Center 56%
Client 28%
Gaming 9%
Embedded 7%

Management

Leadership Summary
  • Strong technical pedigree with founders from Sun and Cisco driving innovation in high-speed networking.
  • Proven execution on cloud and AI-driven growth, consistently outperforming peers in revenue expansion.
  • Experienced finance and operations team supporting scalable global operations.
  • Focus on R&D investment maintaining technology leadership in Ethernet switching.
Track Record

Arista has delivered 30%+ CAGR revenue growth over the past decade under current leadership, with successful IPO in 2014 and expansion into enterprise and cloud markets.

Recent Commentary

“In Q2 2024 earnings, CEO Ullal highlighted AI cluster demand driving 44% YoY growth, while emphasizing supply chain resilience and new 800G product launches.”

Analyst Reviews & Risks

Wall Street Consensus
4.6
out of 5 (Strong Buy)
Average Target: $485.00
Key Investment Risks
  • Low income stability score of 35
  • Zero dividend yield and warchest
  • Debt to CFO ratio of 1.68 indicates moderate leverage
Ownership & Sentiment

Institutional Ownership: N/A%

Short Interest: N/A%

AI Investment Thesis
  • Arista Networks leads in high-speed Ethernet switching for cloud and AI data centers with superior performance and scalability.
  • Strong revenue growth driven by surging demand for 400G/800G switches from hyperscalers investing in AI infrastructure.
  • High gross margins (~63%) and efficient operations deliver consistent profitability and free cash flow.
  • Gaining market share from Cisco through innovative EOS software platform and customer-centric solutions.
  • Positioned for long-term expansion as AI workloads require advanced, low-latency networking fabrics.
Key Catalysts & Risks
Catalysts
  • Accelerated AI capex by major cloud providers boosting switch demand
  • New product launches in 800G and beyond with higher margins
  • Potential market share gains in enterprise and 5G edge markets
Risks
  • Intense competition from Cisco, Broadcom, and Nvidia networking
  • Customer concentration with top clients representing majority of revenue
  • Supply chain disruptions or geopolitical tensions affecting component sourcing
Peer Comparison
Company P/E Rev Growth Gross Margin ROE Debt/Equity
NVDA N/A N/A% N/A% 60.22% 0.68
INTC N/A N/A% N/A% -5.53% 6.65
AVGO N/A N/A% N/A% 16.36% 2.72
AMD N/A N/A% N/A% 7.62% 1.83
  • ...

    Investors

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  • Ticker

     ANET
  • ...

    Sector

     Communications

  • Current Price

     $199.59

  • S.I.F.T. Score

     58
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