All Stocks

$ANET · NASDAQ

Arista Networks, Inc.

🇺🇸 Technology Computer Hardware

$202.25

▲ 5.92%

Market Cap$254.67B

P/E (TTM)64.21

52W Range$114.52 – $214.89

Volume8.0M

Beta1.61

Key Statistics

Revenue$10.5B37.7%

Net Income$4.0B35.7%

Gross Margin63.0%

Net Margin38.4%

P/E Ratio64.21

Forward P/E39.20

PEG Ratio1.78

P/S Ratio24.2x

Financial Performance

EBITDA$4.6B

Free Cash Flow$3.9B

Operating Margin45.4%

ROE31.5%

Total Debt$0.00

Total Cash$13.3B

Dividend Yield—

EPS (TTM)$3.15

The Signal Report

PREMIUM

Moat Rating

🛡️ Wide Moat

★★★★★

Switching Costs ●●●●●

Intangible Assets ●●●●○

Network Effect ●●●●○

Cost Advantage ●●●●●

Efficient Scale ●●●●●

Confidence: High

Fair Value

$241.82

+19.6% upside

Based on 27 analyst targets

🤖 Pulse AI Analysis

Arista Networks appears significantly overvalued based on its current P/E of 63.86 relative to its robust 37.7% revenue growth. However, its 'Wide' moat, driven by proprietary EOS software and strong positioning in the high-growth AI networking market, suggests a strong long-term outlook despite the...

🔒 Members Only →

Recent Performance & Catalysts

Latest Earnings Arista just reported strong earnings, exceeding estimates (e.g., EPS 1.02 vs Est 0.89) and raising full-year outlooks, confirming robust growth in the AI networking segment.

Revenue Growth The company demonstrated impressive TTM revenue growth of 37.7%, fueled by high demand for AI and data center networking solutions.

Upcoming Catalysts:

Continued strong demand for AI data center infrastructure and 1.6T networking platforms.
Further expansion of market share in the Ethernet switch market, particularly with hyperscale cloud providers.
Ongoing innovation and new product launches, maintaining technology leadership.

Core Strengths & Moat Sources

Switching Costs: Integrating and optimizing Arista's network infrastructure, particularly with its proprietary EOS, involves significant time and cost for customers, creating moderate switching barriers once adopted.

Intangible Assets: Arista's proprietary Extensible Operating System (EOS) software and specialized hardware designs provide a substantial competitive advantage, particularly in performance, programmability, and reliability for mission-critical AI and data center environments.

Network Effects: While Arista does not exhibit a direct network effect in the traditional sense of equipment sales, its deep integration into the hyperscale cloud and AI ecosystems fosters a strong ecosystem lock-in, benefiting from standard setting and developer familiarity.

Cost Advantage: Arista focuses on high-end, high-margin solutions rather than competing on low-cost, and manufacturing is outsourced. This limits a sustainable cost advantage over broad-market competitors, though its superior technology commands premium pricing.

Efficient Scale: Operating in a specialized, high-growth segment of data center and AI networking allows Arista to achieve efficiencies of scale within its niche. However, it's not dominant enough across the entire networking market to gain a prolonged efficient scale advantage over larger, more diversified competitors.

Main Risks

Intense competition from larger, more diversified networking companies.
Potential cyclicality in capital expenditure by hyperscale cloud providers and enterprise customers.
Reliance on third-party manufacturers and supply chain disruptions.
Rapid technological changes in the networking and AI hardware landscape.

🐂 Bulls Say

Arista is the undisputed leader in AI data center networking, benefiting directly from the massive investments in AI infrastructure.
Exceptional financial health with zero debt, $13.3B cash, and strong free cash flow, providing significant financial flexibility.
Proprietary EOS software and 1.6T platform represent a significant technological moat and competitive advantage.
Consistent strong revenue growth and high margins demonstrate robust demand and pricing power.

🐻 Bears Say

The current valuation (P/E 63.86) is extremely high, factoring in significant future growth, leaving little room for error.
Increased competition, particularly with Nvidia's growing presence in data center networking, could pressure market share and margins.
Any slowdown in hyperscaler spending or AI investment could severely impact Arista's growth trajectory.
Outsourced manufacturing might pose supply chain risks or limit cost control.

Financial Health

Arista boasts an exceptional balance sheet, characterized by zero debt and a substantial cash reserve of $13.3 billion, underpinning its financial resilience and ability to fund future growth or acquisitions. This strong liquidity, coupled with $3.9 billion in free cash flow, provides significant operational flexibility.

Analyst Note

Arista Networks is a premium growth story in the critical AI networking infrastructure space, meriting its strong buy consensus despite a high valuation.

Business Strategy & Outlook

Arista's strategy centers on delivering high-performance, software-driven networking solutions with its Extensible Operating System (EOS) to cloud, data center, and AI environments. The company aims to maintain technological leadership through continuous innovation, particularly in high-speed AI fabrics, and by forging deep relationships with hyperscale customers, ensuring its position as the 'tollbooth' for AI infrastructure.

P/E (TTM)

64.21

Forward P/E

39.20

PEG Ratio

1.78

Analyst Consensus

strong buy

Wall Street Consensus

strong buy

Mean Target$241.82+19.6%

High$289.00

Low$185.00

Strong Buy

Buy

Total Returns

1 Year+51.8%

5 Year+841.7%

10 Year+3703.5%

Year to Date+51.4%

Company Profile

Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for AI, data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications. The company offers data center, cloud and AI networking, cognitive adjacencies, and cognitive network software and services. It also provides post contract customer support services, such as technical support, hardware repair and replacement parts beyon

SectorTechnology

IndustryComputer Hardware

Employees5,115

HeadquartersSanta Clara, CA

ExchangeNYSE

Websitehttps://www.arista.com

Income Statement

Total Revenues

Net Income