XStocksXray

Research report · 16 October 2026

Arista Networks, Inc. (ANET)

Information Technology · Communications Equipment · US stock · price as of 16 Oct 2026

Key indicators

Price	$176.98
52-week range	$114.52 – $217.41
Market cap	$225.8B
P/E (trailing)	423.4×
EV / EBITDA	45.8×
Free-cash-flow yield	2.3%
Dividend yield	–
Revenue (last 12 months)	$10.5B
Revenue growth (3y a year)	27.1%
Operating margin	43.1%
Return on invested capital	253.4%
Net debt / EBITDA	–

Fair value

Blended fair value$113.68 range $80 – $116

Versus priceOvervalued−36% to fair value

Peer multiples	$111.73
Fundamentals-adjusted multiple	$48.58
10-year DCF (market-scaled)	$180.74
Earnings power value (floor, not blended)	$39.17
Model uncertainty	Medium

X-Ray Score

62/ 100 · High confidence · ahead of 83% of sector peers

Valuation34

Growth87

Profitability75

Financial health54

Dividends–

Five-year price chart navy: price · brown: 200-day average · blue band: fair value range

Executive summary

Arista Networks designs and sells high-speed Ethernet switches and routers, along with the software that runs them. Its main customers are large cloud and internet companies, plus enterprises and service providers that build data center and campus networks. Revenue comes from hardware sales, which carry its Extensible Operating System, and from recurring software subscriptions and support services. Demand is closely tied to spending on data center capacity.

Revenue has grown 27.1% a year over three years, leaving the last twelve months at $10.5 billion. Operating margin is 43.1%. Return on invested capital comes to 253%. It does not pay a dividend. These numbers describe past results and current financial position, and they are shown for reference only.

StocksXray gives Arista Networks, Inc. an X-Ray Score of 62 out of 100 (high confidence), ahead of 83% of the S&P 500 stocks in its sector. Its strongest lens is growth (87) and its weakest is valuation (34).

Our fair value blend is $113.68 (range $80.16 to $115.59). At $176.98 the stock trades 56% above that blend, so the label is "Overvalued" with medium model uncertainty. Fair value is a range, not a price target.

XStocksXray

Arista Networks, Inc. (ANET)

Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months

	FY2021	FY2022	FY2023	FY2024	FY2025	Now
Price	$35.94	$30.34	$58.88	$110.53	$131.03	$176.98
Market cap	$11.5B	$38.4B	$74.7B	$141.6B	$167.2B	$225.8B
P/E	13.7×	28.4×	35.7×	49.6×	47.6×	423.4×
EV / revenue	2.7×	8.1×	11.9×	19.0×	17.4×	20.2×
EV / EBITDA	8.3×	22.3×	29.9×	44.3×	39.8×	45.8×
Price / free cash flow	12.1×	85.7×	37.4×	38.5×	39.3×	43.8×
Free-cash-flow yield	8.3%	1.2%	2.7%	2.6%	2.5%	2.3%
Price / book	2.9×	7.9×	10.3×	14.2×	13.5×	15.3×
Dividend yield	–	–	–	–	–	–

Fundamentals checklist ● 10 Good · ● 2 Average · ● 3 Bad · each check graded against the sector

Cash quality

Earnings backed by cash−20.1%Good

Free-cash-flow yield2.3%Bad

Risk models

Altman Z score8.3×Good

Piotroski F-Score4 of 9Bad

Growth

EPS growth (3y)37.0%Good

Free-cash-flow growth (3y)111.7%Good

Revenue growth (3y)27.1%Good

Growth consistency100%Good

Balance sheet

Current ratio3.0×Good

Interest coverno interest costGood

Valuation

Fair value vs price0.6×Average

EBIT / EV yield2.1%Bad

Profitability

Return on invested capital253.4%Good

Operating margin43.1%Good

Gross profitability28.0%Average

XStocksXray

Arista Networks, Inc. (ANET)

Financials US$ millions, from SEC filings; last column is the last twelve months

Income statement	FY21	FY22	FY23	FY24	FY25	LTM
Revenue	2,948	4,381	5,860	7,003	9,006	10,541
Gross profit	1,881	2,676	3,630	4,491	5,769	6,641
Operating income	925	1,527	2,257	2,945	3,856	4,547
Net income	0	0	0	0	0	533
Diluted EPS ($)	2.63	1.07	1.65	2.23	2.75	0.42
Free cash flow	951	448	2,000	3,676	4,252	5,155
Gross margin	63.8%	61.1%	61.9%	64.1%	64.1%	63.0%
Operating margin	31.4%	34.9%	38.5%	42.0%	42.8%	43.1%
Net margin	0.0%	0.0%	0.0%	0.0%	0.0%	5.1%
Balance sheet	FY21	FY22	FY23	FY24	FY25	LTM
Total assets	5,734	6,775	9,957	14,044	19,449	23,720
Cash	621	672	1,939	2,762	1,964	2,290
Total debt	–	–	–	–	–	–
Equity	3,979	4,886	7,219	9,995	12,371	14,798
Dividend per share ($)	–	–	–	–	–	–

Revenue and net income US$ billions: navy revenue, teal net income

Margins blue gross, teal operating, brown net

Latest quarters

	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue ($M)	2,005	2,205	2,308	2,488	2,709	3,036
Growth vs a year earlier	+27.6%	+30.4%	+27.5%	+28.9%	+35.1%	+37.7%
Net income ($M)	814	889	853	-2,556	1,023	1,213
Diluted EPS ($)	0.64	0.70	0.67	–	0.80	0.95

XStocksXray

Arista Networks, Inc. (ANET)

Peers in Communications Equipment

Company	X-Ray
ANET · Arista Networks, Inc.	62
FFIV · F5, Inc.	60
MSI · Motorola Solutions, Inc.	49
CSCO · Cisco Systems, Inc.	44
CIEN · Ciena Corp	39

Market Compass outlook for Information Technology: Favourable (75/100). It blends regime history, macro sensitivity, momentum and valuation.

Returns

1 week	−18.3%
1 month	−11.3%
3 months	+4.5%
6 months	+7.8%
1 year	+23.4%
3 years	+268.9%
5 years	+661.2%

Technical summary

DailyBearish5 bullish · 1 neutral · 10 bearish

WeeklyBullish7 bullish · 1 neutral · 4 bearish

MonthlyStrongly bullish7 bullish · 1 neutral · 0 bearish

50-day / 200-day average	$198.42 / $162.64
52-week low / high	$114.52 / $217.41
Classic pivot, support and resistance	S2 171.55 · S1 174.27 · P – · R1 182.20 · R2 187.41

XStocksXray

Arista Networks, Inc. (ANET)

Strengths

Return on invested capital of 253.4% is ahead of 97% of its sector peers.
Operating margin of 43.1% is ahead of 89% of its sector peers.
Revenue growth of 27.1% a year over three years is ahead of 90% of its sector peers.
Interest cover of no interest cost is ahead of 75% of its sector peers.

Risks and weak spots

Free-cash-flow yield is weak against Information Technology peers (2.3%).
Piotroski F-Score is weak against Information Technology peers (4 of 9).
EBIT / EV yield is weak against Information Technology peers (2.1%).
The price is above our fair value range, so good news may already be in the price.

Latest SEC filings

Date	Form	Items
5 Aug 2026	10-Q
4 Aug 2026	8-K	2.02,9.01
2 Jun 2026	8-K	5.07
6 May 2026	10-Q
5 May 2026	8-K	2.02,9.01
16 Apr 2026	DEF 14A
17 Feb 2026	10-K
12 Feb 2026	8-K	2.02,9.01

How to read this report

Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.