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Arista Networks Inc

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Arista Networks Inc
ANET Communications
$154.40 ▼ -7.00%
$11.62 today · as of 06 Jun 2026
58 S.I.F.T
S.I.F.T.™ Analysis
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Adequate quality – monitor closely.
Last updated: 06 Jun 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 moat supported by solid ROE but constrained by zero dividend, low income stability, and no warchest reserves in a competitive tech sector.

Strengths: ROE of 17.18 and fundamentals pillar of 65, Safety pillar of 65 with large market cap over $193B, Overall sift_score of 58.1 in communications sector
Risks: Low income_stability pillar score of 35 indicating earnings volatility, Zero dividend yield and warchest_pct, Debt to CFO ratio of 1.51 and time_in_market score of only 45
📈 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
  • Deep domain expertise in high-performance networking from founding team with Silicon Valley pedigree.
  • Proven execution in scaling revenue and market share against incumbents like Cisco and Juniper.
  • Strong emphasis on software-defined innovation and customer-centric product development.
  • Transparent communication with investors through consistent earnings guidance and strategic updates.
Track Record

Under current leadership Arista has delivered double-digit revenue CAGR since IPO, expanded gross margins, and captured significant share in hyperscale and AI-driven data center markets.

Recent Commentary

“Management has highlighted robust AI cluster demand in 2024 earnings calls while noting supply chain normalization and continued R&D investment in 800G and beyond.”

Analyst Reviews & Risks

Wall Street Consensus
4.6
out of 5 (Strong Buy)
Average Target: $485.00
Key Investment Risks
  • Low income_stability pillar score of 35 indicating earnings volatility
  • Zero dividend yield and warchest_pct
  • Debt to CFO ratio of 1.51 and time_in_market score of only 45
Ownership & Sentiment

Institutional Ownership: N/A%

Short Interest: N/A%

AI Investment Thesis
  • Arista is positioned to benefit from AI-driven data center buildouts with its high-speed, low-latency Ethernet switches.
  • Leadership in 400G/800G networking provides a technological edge over competitors in hyperscale environments.
  • High gross margins above 60% and strong free cash flow generation support scalable growth.
  • Expansion into enterprise and campus markets diversifies revenue beyond hyperscalers.
  • Software-centric EOS platform creates stickiness and recurring revenue opportunities.
Key Catalysts & Risks
Catalysts
  • Accelerated AI infrastructure spending by major cloud providers
  • New 1.6T product launches and design wins
  • Market share gains in enterprise networking
Risks
  • Customer concentration with top hyperscalers
  • Intense competition from Cisco and Broadcom
  • High valuation sensitive to growth misses or macro capex cuts
Peer Comparison
Company P/E Rev Growth Gross Margin ROE Debt/Equity
NVDA N/A N/A% N/A% 61.51% 0.51
INTC N/A N/A% N/A% -1.64% 8.05
AVGO N/A N/A% N/A% 14.7% 3.03
AMD N/A N/A% N/A% 8.08% 999
  • ...

    Investors

     0

  • Ticker

     ANET
  • ...

    Sector

     Communications

  • Current Price

     $154.40

  • S.I.F.T. Score

     58
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