Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Arista Networks, Inc.

ANET · NYSE · Technology

Fundamental quality

EXCELLENT

94

out of 100

Arista Networks, Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 27.6%) with wide margins (net margin 38.3%) and a business that keeps growing (31.4% a year). On fundamental quality it scores 94 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Arista Networks sells the high-performance network switches that connect servers inside large data centers, with a software operating system (EOS) that is its real edge. Cloud and AI giants are its biggest customers.

What will shape its future

  • AI data-center investment: the networks connecting GPUs are a critical part of that spending.
  • Customer concentration: a few giants (Microsoft, Meta) carry a lot of weight in its revenue.
  • Competition from Cisco and from the cloud giants' own white-box networking.

Breakdown by area

I.Growth
95

EPS growth: 40.1% · Revenue growth: 31.4%

II.Profitability
93

Net margin: 38.3% · ROE: 27.6% · ROIC: 31.6%

III.Financial health
95

Net debt/EBITDA: -0.66x · FCF: 54.4%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 90%
ROEbeats 66%
Growthbeats 83%
Cash generationbeats 100%
Less debtbeats 83%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Arista Networks, Inc. strengths

  • Excellent free-cash-flow generation (FCF margin of 54.4%): profit turns into real cash.
  • Growing earnings per share (40.1% annualized).
  • Exceptional net margin (38.3%), high even for its sector: the business is clearly profitable.
  • Revenue growing strongly (31.4% annualized).

Arista Networks, Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Arista Networks, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20202,318635720-893
20212,948841951-621
20224,3811,352448-672
20235,8602,0872,000-1,939
20247,0032,8523,676-2,762
20259,0063,5114,252-1,964

Between 2020 and 2025, revenue went from $2,318M to $9,006M (+289%) and net income went from $635M to $3,511M (+453%). Meanwhile, its margins have widened (from 27% to 39%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+35.1%
  • Net income+25.7%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Arista Networks, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Arista Networks, Inc. a good company to invest in?

In terms of business quality, Arista Networks, Inc. scores 94 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Arista Networks, Inc. a profitable company?

Very. Arista Networks, Inc. shows a net margin of 38.3% and an ROE of 27.6%, typical of a highly profitable business.

Does Arista Networks, Inc. have a lot of debt?

No. Arista Networks, Inc. has a net cash position: more cash than debt.

Is Arista Networks, Inc. growing?

Its revenue has grown 31.4% annualized in recent years and its earnings per share 40.1%, and without interruption since 2020.

Does Arista Networks, Inc. generate cash?

Yes. It converts about 54.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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