Arista Networks, Inc.(ANET) - Stock detail

Arista Networks, Inc.

US
ANET
Arista Networks Inc(Listing date: 06/06/2014)

Arista Networks, Inc. was incorporated in the State of Delaware in October 2004. The company is an industry leader in networking for data-driven, client-to-cloud large-scale data center, campus, and routing environments. Its platform delivers availability, agility, automation, analytics, and security through an advanced network operating stack.

AI Value AnalystHold
Overall Rating6.3/10
Generated at:2026-06-04 17:40:39
Analysis based on real data for Arista Networks, Inc. (ANET). Data sources include company financial reports. Analysis uses 5 financial report periods: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. The current stock price as of the analysis date (2026-06-05) is $166.01. Data is considered complete for the periods analyzed.
Overview

Arista Networks, Inc. (ANET) is a fundamentally outstanding company with superior financial health, exceptional profitability, and strong growth. The company operates globally, focusing on AI, data center, campus, and routing environments, and demonstrates a very strong and stable financial foundation. However, the stock is trading at a significant premium, reflecting high growth expectations, making it fully valued or slightly overvalued based on traditional metrics.

Valuation
2/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • The stock appears fully valued or slightly overvalued at the current price of $166.01.
  • New investment at this price carries higher risk if growth expectations are not met.
  • Existing shareholders should consider holding due to the company's strong operational performance but may wait for a more attractive entry point or a pullback before adding significantly to positions.
  • A reasonable 12-month fundamental-based target price range is $185 - $215.

Valuation

P/E TTM
55.58
P/E LYR
65.41
P/B MRQ
15.67
P/S TTM
--
AI Analysis
  • Valuation metrics suggest the stock is trading at a significant premium, reflecting high growth expectations. The P/E, P/B, and P/S ratios are all very high, indicating the stock appears fully valued or slightly overvalued at the current level. The current price is near the higher end of the recent trading range.
  • The trailing twelve months (TTM) P/E ratio is 55.58, and the forward (dynamic) P/E is 65.41, which are very high multiples typical for companies with anticipated high future growth.
  • The P/B ratio is 15.67, an extremely high ratio due to the company's massive profitability compressing its book value and the market's premium valuation of its intangible assets.
  • The P/S-TTM ratio is 21.53, which is also exceptionally high, indicating investors are paying a large premium for each dollar of Arista's sales.
  • The 60-day trading data shows significant volatility, with the price ranging from a low of $115.42 to a high of $179.80.
  • The current price of $166.01 is near the higher end of this recent range but below the peak.
  • Given the high-growth fundamentals but premium valuation, a reasonable 12-month target price range is $185 - $215, assuming continued execution on growth and a slight multiple compression or stabilization as earnings catch up to the valuation.
Valuation trend

Profitability

ROE TTM
31.22%
Net margin
37.76%
Gross margin
61.90%
Total revenue
2.71B
AI Analysis
  • Arista Networks demonstrates exceptional and consistent profitability with strong revenue growth, industry-leading margins, and highly efficient returns on capital.
  • Revenue growth has been consistently strong, with the latest Q1 2026 showing a 35.13% year-over-year increase to $2.71B.
  • Full-year 2025 revenue growth was 28.60%.
  • The company maintains industry-leading margins, with a net margin for Q1 2026 of 37.76%.
  • Net margin has consistently been above 38% in recent quarters.
  • The gross margin remains healthy at 61.90% in Q1 2026.
  • The Return on Equity (ROE-TTM) is an impressive 31.22%.
  • Return on Assets (ROA-TTM) is 20.25%, indicating highly efficient use of company assets to generate profits.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--16.30%23.34%31.40%31.22%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue2.00B4.21B6.52B9.01B2.71B

Financial health

Debt/Asset
37.72%
Current ratio
2.83
Quick ratio
2.47
Cash ratio
2.47
AI Analysis
  • The company exhibits strong financial health with robust liquidity, manageable leverage, and a very stable financial foundation.
  • The current ratio of 2.83 and quick ratio of 2.47 indicate more than sufficient short-term assets to cover short-term liabilities, suggesting robust liquidity.
  • The debt-to-asset ratio of 37.72% shows a moderate level of financial leverage.
  • The balance between equity and debt appears manageable, especially given the company's high profitability.
  • The combination of high liquidity and manageable leverage points to a very strong and stable financial foundation.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset30.28%34.07%34.03%36.39%37.72%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio3.933.333.253.052.83