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 Rating7/10
Generated at:2026-06-11 17:41:24
Analysis based on 5 financial reports from 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Price data as of 2026-06-11 close. Data appears complete for fundamental analysis covering financial condition, profitability, and valuation metrics.
Overview

Arista Networks is a fundamentally strong company with exceptional profitability, accelerating revenue growth, and a solid financial position. It operates in the high-growth AI infrastructure market with industry-leading margins. However, the stock trades at significant valuation premiums that require perfect execution to justify.

Valuation
4/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Hold for existing shareholders.
  • For new investors, consider accumulating on market-driven pullbacks towards the $140-$150 range where risk/reward would be more favorable.
  • A 12-month fundamental target price range is $170-$190 based on continued execution in AI and cloud networking.

Valuation

P/E TTM
55.58
P/E LYR
65.41
P/B MRQ
15.67
P/S TTM
--
AI Analysis
  • Valuation metrics indicate the stock is trading at a significant premium with P/E of 55.58x (TTM) and P/S of 20.28x. The high multiples are partially justified by exceptional growth but leave little room for error. The stock appears in the lower end of a fair valuation range relative to growth potential but is not deeply undervalued.
  • Current price is $156.40 as of 2026-06-11 close
  • P/E (TTM) is 55.58x, which is very high compared to the broader market average
  • Forward P/E (Dynamic) is 65.41x, suggesting the market is pricing in continued high growth
  • P/B ratio is 15.67x, extremely high reflecting valuation of intangible assets and future earnings power
  • P/S ratio is 20.28x, indicating investors are willing to pay a high price for each dollar of sales
  • A PEG ratio using TTM P/E and 25% growth rate would be approximately 2.22, above the traditional fair value benchmark of 1.0
  • The stock has shown significant volatility with a 60-day high of $179.80 and low of $115.42
  • Reasonable 12-month fundamental target price range is $170-$190
  • At current price of $156.40, the stock appears to be in the lower end of a fair valuation range relative to growth potential, but is not deeply undervalued
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 accelerating revenue growth of 35.13% year-over-year in Q1 2026 and industry-leading margins including 37.76% net margin and 31.22% ROE.
  • Company demonstrates exceptional and consistent profitability with strong growth momentum
  • Experiencing accelerating top-line growth with Q1 2026 revenue of $2.71B growing 35.13% year-over-year
  • Maintains industry-leading margins with Q1 2026 gross margin of 61.90%
  • Q1 2026 net margin was 37.76%, remaining extraordinarily high for a hardware-centric business
  • Return on Equity (ROE-TTM) of 31.22% is outstanding, indicating substantial profit generation for shareholder equity
  • Q1 2026 net income grew by 25.69% year-over-year, maintaining strong pace consistent with historical performance
  • The acceleration in revenue growth from ~28-29% to 35.13% is a highly positive signal
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
  • Arista Networks exhibits a strong and healthy financial position with robust liquidity (current ratio 2.83), moderate leverage (debt-to-asset ratio 37.72%), and exceptional asset efficiency (ROA-TTM 20.25%).
  • Arista Networks exhibits a strong and healthy financial position
  • Robust short-term financial health with current ratio of 2.83 and quick ratio of 2.47, well above standard threshold of 1.0
  • Ample ability to cover short-term obligations with liquid assets
  • Debt-to-asset ratio is 37.72%, indicating a moderate level of leverage
  • Company uses balanced mix of debt and equity to finance operations, typical for mature, growing technology firm
  • Debt burden is manageable and not alarmingly high
  • Return on Assets (ROA-TTM) of 20.25% is exceptionally high, demonstrating management is highly efficient at generating profits from asset base
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset30.28%34.07%34.03%36.39%37.72%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio3.933.333.253.052.83