📊 ANET Key Takeaways
Is Arista Networks, Inc. (ANET) a Good Investment?
Arista Networks demonstrates exceptional financial health with industry-leading profitability margins (64.1% gross, 42.8% operating, 39.0% net) and strong revenue growth of 28.6% YoY. The company generates substantial free cash flow of $4.3B with minimal leverage and zero long-term debt, positioning it for sustained growth and strategic investments.
Arista Networks shows exceptional fundamental quality, combining 28.6% revenue growth with elite profitability, including 64.1% gross margin, 42.8% operating margin, and 47.2% free cash flow margin. The balance sheet is very strong with no long-term debt, ample liquidity, and high returns on capital, supporting resilience and reinvestment capacity. The main caution is that net income was flat year over year despite strong top-line growth, which suggests watching operating leverage conversion closely.
Why Buy Arista Networks, Inc. Stock? ANET Key Strengths
- Exceptional profitability with 39% net margin and 28.4% ROE, well above semiconductor/networking industry averages
- Strong revenue growth of 28.6% YoY combined with operating leverage, demonstrating scalable business model
- Fortress balance sheet with $2.0B cash, zero debt, and 3.05x current ratio providing strategic flexibility
- Outstanding free cash flow generation at $4.3B (47.2% FCF margin), enabling organic growth and shareholder returns
- High asset efficiency with 18.1% ROA indicating effective capital deployment
- High-quality growth with revenue up 28.6% year over year and strong EPS expansion
- Outstanding profitability with 64.1% gross margin, 42.8% operating margin, and 39.0% net margin
- Excellent financial health with no long-term debt, 3.05x current ratio, and $4.25B in free cash flow
ANET Stock Risks: Arista Networks, Inc. Investment Risks
- Dependency on AI/data center infrastructure market cyclicality and customer concentration risk
- Revenue growth sustainability at 28.6% may face normalization as company scales to larger base
- High insider trading activity (22 Form 4 filings in 90 days) warrants monitoring for equity dilution patterns
- Competitive pressure from larger networking vendors (Cisco, Juniper) with greater resources and customer relationships
- Supply chain and geopolitical risks common to networking hardware manufacturers
- Net income was flat year over year, indicating some earnings conversion pressure despite strong revenue growth
- High profitability leaves less room for execution missteps if product mix or costs worsen
- Growth quality should be monitored for sustainability given the large scale already reached
Key Metrics to Watch
- Quarterly revenue growth rate and gross margin sustainability above 64%
- Operating cash flow generation relative to capital expenditure efficiency
- Customer concentration and win rates in competitive AI infrastructure deals
- Operating margin maintenance as company scales and investments in R&D increase
- Revenue growth versus net income growth
- Free cash flow margin
Arista Networks, Inc. (ANET) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 47.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.05x current ratio provides a solid financial cushion.
ANET Profit Margin, ROE & Profitability Analysis
ANET vs Technology Sector: How Arista Networks, Inc. Compares
How Arista Networks, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Arista Networks, Inc. Stock Overvalued? ANET Valuation Analysis 2026
Based on fundamental analysis, Arista Networks, Inc. appears fundamentally strong relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Arista Networks, Inc. Balance Sheet: ANET Debt, Cash & Liquidity
ANET Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Arista Networks, Inc.'s revenue has grown significantly by 205% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.65 reflects profitable operations.
ANET Revenue Growth, EPS Growth & YoY Performance
ANET Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.8B | $748.0M | $0.58 |
| Q2 2025 | $1.7B | $665.4M | $0.52 |
| Q1 2025 | $1.6B | $637.7M | $0.50 |
| Q3 2024 | $1.5B | $545.3M | $1.72 |
| Q2 2024 | $1.5B | $491.9M | $1.55 |
| Q1 2024 | $1.4B | $436.5M | $1.38 |
| Q3 2023 | $1.2B | $354.0M | $1.13 |
| Q2 2023 | $1.1B | $299.1M | $0.94 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Arista Networks, Inc. Dividends, Buybacks & Capital Allocation
ANET SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Arista Networks, Inc. (CIK: 0001596532)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ANET
What is the AI rating for ANET?
Arista Networks, Inc. (ANET) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 92% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ANET's key strengths?
Claude: Exceptional profitability with 39% net margin and 28.4% ROE, well above semiconductor/networking industry averages. Strong revenue growth of 28.6% YoY combined with operating leverage, demonstrating scalable business model. ChatGPT: High-quality growth with revenue up 28.6% year over year and strong EPS expansion. Outstanding profitability with 64.1% gross margin, 42.8% operating margin, and 39.0% net margin.
What are the risks of investing in ANET?
Claude: Dependency on AI/data center infrastructure market cyclicality and customer concentration risk. Revenue growth sustainability at 28.6% may face normalization as company scales to larger base. ChatGPT: Net income was flat year over year, indicating some earnings conversion pressure despite strong revenue growth. High profitability leaves less room for execution missteps if product mix or costs worsen.
What is ANET's revenue and growth?
Arista Networks, Inc. reported revenue of $9.0B.
Does ANET pay dividends?
Arista Networks, Inc. does not currently pay dividends.
Where can I find ANET SEC filings?
Official SEC filings for Arista Networks, Inc. (CIK: 0001596532) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ANET's EPS?
Arista Networks, Inc. has a diluted EPS of $2.75.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ANET a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Arista Networks, Inc. has a BUY rating with 92% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ANET stock overvalued or undervalued?
Valuation metrics for ANET: ROE of 28.4% (sector avg: 22%), net margin of 39.0% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy ANET stock in 2026?
Our dual AI analysis gives Arista Networks, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ANET's free cash flow?
Arista Networks, Inc.'s operating cash flow is $4.4B, with capital expenditures of $119.5M. FCF margin is 47.2%.
How does ANET compare to other Technology stocks?
Vs Technology sector averages: Net margin 39.0% (avg: 18%), ROE 28.4% (avg: 22%), current ratio 3.05 (avg: 2.5).
Why is ANET's return on equity (ROE) so high?
Arista Networks, Inc. has a return on equity of 28.4%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 39.0% net margin.