Arista Networks, Inc. (ANET) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Arista Networks, Inc.

Updated on October 24, 2026 · accounts published on August 4, 2026

A fast-growing, highly profitable business with record margins and no debt

Arista Networks trades at a P/E of 53.3× over the last 12 months, 69 % above its sector median, with revenue up 29 % and a record operating margin.

• Is Arista Networks expensive or cheap? At a P/E of 53.3×, Arista Networks trades 69 % above its sector median and was cheaper 64 % of the past decade.
• How is the business doing? Revenue grew 29 % over the last 12 months and the fiscal 2025 operating margin of 43 % was the best in 12 years.
• Does it grow with real cash or by diluting shareholders? Free cash flow was 47 % of revenue in fiscal 2025, while stock-based pay took 4.9 %, below the 10 % healthy ceiling.
• How strong is the balance sheet? Arista Networks had no debt and $8.54 of net cash per share at the end of fiscal 2025, about 5 % of the share price.
• What to expect from the next earnings? Analysts expect EPS of $1.08 on November 3, 2026; Arista Networks has beaten estimates in each of the last 8 quarters.

Is Arista Networks expensive or cheap?

Over the last 12 months Arista Networks trades at a P/E of 53.3×, against a sector median of 31.5×, a 69 % premium. Against its own history the gap is narrower: the ten-year median P/E is 47.3×, so today's multiple sits 15 % above it, and the stock has traded lower than now 64 % of the time over the decade, in a range from 14.6× to 110×. EV/EBITDA of 41.5× also exceeds its five-year average of 34.7×. The share price is up 7 % over 12 months yet 22 % below its 52-week high of $216.74.

How is the business doing?

Arista Networks is growing fast and getting more profitable as it grows. Revenue rose 29 % and EPS 23 % over the last 12 months, with an operating margin of 43 % and a net margin of 38 %. The fiscal 2025 operating margin of 43 % was the highest of the 12 fiscal years since 2014, far above the 30 % average for that period. ROIC of 22 % over the last 12 months is almost 14 points above the 8.2 % sector median, and it has stayed above 10 % in each of the last ten fiscal years. That kind of consistency points to a durable business, not one good cycle.

Does it grow with real cash or by diluting shareholders?

In technology, reported earnings tell only part of the story, so the sector is judged on growth per share, pricing power and dilution. Arista Networks passes six of the seven checks. Revenue per share grew 26 % a year over fiscal 2022-2025, above the 15 % healthy mark, so growth reaches each share. Gross margin was 64 % in fiscal 2025, against a 35 % threshold for hardware. Free cash flow equalled 47 % of revenue, more than double the 20 % benchmark, and stock-based compensation stayed at 4.9 % of revenue. The only miss is valuation: EV/EBITDA of 41.5× sits above 110 % of its five-year average.

How strong is the balance sheet?

The balance sheet carries no meaningful financial risk. At the end of fiscal 2025 the company held $8.54 of cash per share and zero debt, giving net debt to EBITDA of −0.5×, well inside the 2.0× tolerated for hardware. A current ratio of 2.96 over the last 12 months means short-term assets cover short-term liabilities almost three times, and an Altman Z of 16.4 sits deep in the safe zone. The Piotroski score of 5 out of 9 is middling: not every accounting signal improved over the year. Net cash is only 5 % of the share price, so it gives little support to the multiple.

What to expect from the next earnings?

Arista Networks reports on November 3, 2026, and analysts expect EPS of $1.08 for the quarter. Its track record sets a high bar: it beat EPS estimates in each of the last eight quarters, and on August 4, 2026 it reported $1.02 against $0.89 expected, a 15 % surprise. The 2026 EPS consensus has held at $4.11 over the last 30 days among 18 analysts, and revenue estimates have barely moved either, so expectations are steady going in. Of 53 analysts, 41 rate it a buy, 12 a hold and none a sell. At a P/E of 53.3×, a quarter that only meets expectations could disappoint.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.