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Arista Networks

Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible op...

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Arista Networks
ANET COMPUTER COMMUNICATIONS EQUIPMENT · Market Cap: $215B
$169.71 ▼ -0.61%
$1.05 today · as of 29 Jul 2026
58 S.I.F.T
S.I.F.T.™ Analysis
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Last updated: 29 Jul 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

Strong technological moat from its extensible operating system (EOS) that runs a single image across all devices, enabling consistent high-speed performance in data centers and supporting steady market share gains.

Strengths: Innovative EOS providing operational simplicity and scalability, Solid ROE of 17.18% and market share growth in high-speed networking, Large market cap with focus on data center Ethernet switches
Risks: Low income stability due to zero dividend and growth-oriented model, High customer concentration with Microsoft and Meta as top clients, Heavy reliance on North American sales (three-fourths of revenue)
📈 Price History

Business Overview

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.
Key Metrics
ROE (10yr)
17.2%
Debt / CFO
N/A
Div. Yield
0.00%
FCF Growth
0.0%

FAQ

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-speed networking from prior Cisco and Sun roles drives product innovation.
  • Consistent execution on cloud and AI-driven growth strategies has delivered industry-leading margins.
  • Transparent communication with investors through detailed earnings guidance and long-term roadmaps.
  • Strong engineering culture focused on software-defined networking and rapid iteration.
Track Record

Under current leadership Arista has scaled from startup to multi-billion revenue public company, capturing significant share in 100/400G Ethernet switches and expanding into AI fabrics with sustained 30%+ growth.

Recent Commentary

“CEO Ullal recently emphasized AI networking momentum and 800G readiness in Q2 2024 earnings, while highlighting supply chain resilience and customer diversification beyond hyperscalers.”

Analyst Reviews & Risks

Wall Street Consensus
4.6
out of 5 (Strong Buy)
Average Target: $485.00
Key Investment Risks
  • Low income stability due to zero dividend and growth-oriented model
  • High customer concentration with Microsoft and Meta as top clients
  • Heavy reliance on North American sales (three-fourths of revenue)
Ownership & Sentiment

Institutional Ownership: N/A%

Short Interest: N/A%

AI Investment Thesis
  • Arista Networks leads in high-performance Ethernet switching optimized for AI and cloud data centers with superior speed and scalability.
  • Proprietary EOS software delivers a competitive moat through advanced programmability, automation, and reliability versus legacy vendors.
  • Strong revenue growth fueled by hyperscale customer demand and expanding enterprise/campus market penetration.
  • Industry-leading gross margins above 60% and robust free cash flow generation support reinvestment and shareholder returns.
  • Positioned for market share gains from Cisco and others as AI-driven networking upgrades accelerate across the industry.
Key Catalysts & Risks
Catalysts
  • AI infrastructure spending surge driving 400G/800G switch orders from major cloud providers
  • New product launches including 1.6T switches and enhanced AI networking features
  • Potential large enterprise wins and international expansion in 5G and edge computing
Risks
  • Intense competition from Cisco, Broadcom, and Juniper eroding pricing power
  • High customer concentration with top clients representing significant revenue
  • Supply chain vulnerabilities and geopolitical tensions impacting component sourcing
  • Premium valuation sensitive to any slowdown in data center capex or earnings misses
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% -5.53% 6.65
AVGO N/A N/A% N/A% 16.36% 2.72
AMD N/A N/A% N/A% 6.29% 1.78
  • ...

    Investors

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  • Ticker

     ANET
  • ...

    Sector

     COMPUTER COMMUNICATIONS EQUIPMENT

  • Current Price

     $169.71

  • S.I.F.T. Score

     58
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