Arista Networks (ANET)
NYSE:ANET
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Arista Networks
(NYSE:ANET)
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Rating:82Outperform
Price Target:
$146.00
▼(-9.32% Downside)
Action:ReiteratedDate:02/17/26
The score is driven primarily by exceptional financial strength (high margins, strong free cash flow, near debt-free balance sheet) and a positive earnings-call outlook with raised FY2026 and AI targets. These are tempered by a high valuation (P/E ~51) and only moderate, higher-volatility technical momentum.
Positive Factors
Conservative Balance Sheet
Near-zero debt and a materially expanding asset/equity base provide durable financial flexibility. Low leverage reduces refinancing and interest risks, enables opportunistic R&D, capex, buybacks or strategic M&A, and helps the company endure demand cycles without stress on operations.
Negative Factors
Supply-Chain Cost Pressure
Worsening memory shortages and sharply higher prices raise component costs and force larger purchase commitments (purchase commitments rose to $6.8B), creating structural margin exposure and execution risk. Persistent supply cost inflation can compress margins and complicate product pricing.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Near-zero debt and a materially expanding asset/equity base provide durable financial flexibility. Low leverage reduces refinancing and interest risks, enables opportunistic R&D, capex, buybacks or strategic M&A, and helps the company endure demand cycles without stress on operations.
Read all positive factors
Arista Networks (ANET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$193.92B
Dividend YieldN/A
Average Volume (3M)6.39M
Price to Earnings (P/E)43.1
Beta (1Y)2.19
Revenue Growth27.75%
EPS Growth25.42%
CountryUS
Employees4,412
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.82
Shares Outstanding1,256,538,000
10 Day Avg. Volume5,973,220
30 Day Avg. Volume6,391,954
Financial Highlights & Ratios
PEG Ratio2.05
Price to Book (P/B)13.32
Price to Sales (P/S)18.30
P/FCF Ratio38.76
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue22.30
Enterprise Value/Gross Profit34.81
Enterprise Value/Ebitda51.11
Forecast
1Y Price Target
$179.40Price Target Upside11.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)3.53
Revenue Forecast (FY)$11.43B
Arista Networks Business Overview & Revenue Model
Company Description
Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of extensible operating systems, a set of networ...
How the Company Makes Money
Arista makes money primarily by selling networking hardware and associated software and services to cloud and enterprise customers. The largest revenue stream is product revenue from Ethernet switching and routing systems (including fixed and modu...
Arista Networks Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Arista Networks is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Arista Networks is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyArista Networks Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial story: record FY2025 revenue and profitability, robust cash generation, significant AI momentum with raised 2026 guidance (25% revenue growth and a $3.25B AI networking target), international expansion, and continued product/technology wins. Offsetting these positives are meaningful near-term headwinds: worsening memory shortages and higher component costs, deferred revenue lumpiness and recognition timing uncertainty, a sharp quarter-to-quarter services normalization, and working capital volatility (DSO and inventory dynamics). Management believes the guidance is achievable but flagged supply and timing risks that could affect the pace of shipments and margins.Positive Updates
Record Revenue and Strong Top-Line Growth
Fiscal 2025 revenue reached $9,000,000,000, up 28.6% year-over-year; Q4 revenue was $2,490,000,000, up 28.9% YoY and above guidance. Company raised 2026 revenue guidance to approximately $11,250,000,000 (25% growth).
Negative Updates
Memory and Supply Chain Pressure
Management cited materially worsening memory shortages and sharply higher memory prices into 2026, describing prices as significantly elevated and likely to force one-time price increases on memory‑intensive SKUs; purchase commitments rose to $6.8B from $4.8B, reflecting planned chip/memory buys and increased supply risk.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Fiscal 2025 revenue reached $9,000,000,000, up 28.6% year-over-year; Q4 revenue was $2,490,000,000, up 28.9% YoY and above guidance. Company raised 2026 revenue guidance to approximately $11,250,000,000 (25% growth).
Read all positive updates
Company Guidance
Arista raised its fiscal 2026 outlook on a non‑GAAP basis to 25% revenue growth to approximately $11,250,000,000, with AI networking revenue now targeted at $3,250,000,000 (up from $2.75B) and a maintained cognitive campus/branch goal of $1,250,000,000; it reiterated a full‑year gross margin range of 62%–64% (inclusive of mix and anticipated memory/silicon cost pressure), raised operating margin guidance to ~46%, expects a structural tax rate of ~21.5%, and provided Q1 guidance of roughly $2,600,000,000 revenue, 62%–63% gross margin, ~46% operating margin, ~21.5% tax rate and ~1,275,000,000 diluted shares.Arista Networks Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
97
Very Positive
Cash Flow
90
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.01B | 7.00B | 5.86B | 4.38B | 2.95B |
| Gross Profit | 5.77B | 4.49B | 3.63B | 2.68B | 1.88B |
| EBITDA | 3.93B | 3.01B | 2.33B | 1.59B | 975.07M |
| Net Income | 3.51B | 2.85B | 2.09B | 1.35B | 840.85M |
Balance Sheet | |||||
| Total Assets | 19.45B | 14.04B | 9.96B | 6.78B | 5.73B |
| Cash, Cash Equivalents and Short-Term Investments | 10.74B | 8.30B | 5.01B | 3.02B | 3.41B |
| Total Debt | 0.00 | 0.00 | 0.00 | 43.96M | 56.53M |
| Total Liabilities | 7.08B | 4.05B | 2.74B | 1.89B | 1.76B |
| Stockholders Equity | 12.37B | 9.99B | 7.22B | 4.89B | 3.98B |
Cash Flow | |||||
| Free Cash Flow | 4.25B | 3.68B | 2.00B | 448.17M | 951.12M |
| Operating Cash Flow | 4.37B | 3.71B | 2.03B | 492.81M | 1.02B |
| Investing Cash Flow | -3.58B | -2.46B | -687.45M | 216.33M | -925.56M |
| Financing Cash Flow | -1.60B | -421.81M | -83.75M | -654.60M | -360.88M |
Arista Networks Technical Analysis
Positive
161.01
Price Trends
135.50
Positive
133.18
Positive
133.92
Positive
Market Momentum
6.01
Negative
71.52
Negative
98.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANET, the sentiment is Positive. The current price of 161.01 is above the 20-day moving average (MA) of 136.15, above the 50-day MA of 135.50, and above the 200-day MA of 133.92, indicating a bullish trend. The MACD of 6.01 indicates Negative momentum. The RSI at 71.52 is Negative, neither overbought nor oversold. The STOCH value of 98.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANET.
Arista Networks Risk Analysis
Arista Networks disclosed 57 risk factors in its most recent earnings report. Arista Networks reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arista Networks Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $193.92B | 43.11 | 31.01% | ― | 27.75% | 25.42% | |
74 Outperform | $325.31B | 23.23 | 23.64% | 2.09% | 8.91% | 14.53% | |
71 Outperform | $114.48B | 12.78 | -218.24% | 1.45% | 19.12% | 39.59% | |
66 Neutral | $32.67B | 17.34 | -0.64% | 2.17% | 14.17% | -102.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $2.33B | 70.53 | 12.12% | ― | 14.31% | ― |
* Technology Sector Average
ANET
Arista Networks
161.01
89.81
126.14%
CSCO
Cisco Systems
84.50
29.99
55.03%
EXTR
Extreme Networks
17.50
6.12
53.78%
HPE
Hewlett Packard Enterprise
25.89
11.12
75.32%
DELL
Dell Technologies
193.09
109.84
131.93%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.