Detailed financial statements for Arista Networks, Inc. (ANET): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Arista Networks, Inc. is a leading global technology firm that designs, promotes, and distributes innovative cloud networking solutions across the Americas, Europe, the Middle East, Africa, and Asia-Pacific regions. Its comprehensive product portfolio features advanced extensible operating systems, a collection of powerful network applications, and high-performance gigabit Ethernet switching and routing hardware.
Analysis Summary
Arista Networks, Inc. reported revenue of $9.01B in the most recent fiscal year, growing at a 5-year CAGR of 31.2%. Net income reached $3.51B, with a 40.8% 5-year CAGR.
Trailing-twelve-month margins: gross margin 63.0%, operating margin 43.1%, net margin 38.4%. Free cash flow grew at 42.7% CAGR over 5 years.
At $186.72 (closing price, October 28, 2026), ANET trades at a P/E of 58.90 and an ROE of 30.78%. Market capitalisation stands at $235.5B, placing it among large-cap names.
Balance sheet quality for ANET: current ratio of 3.0. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $4.25B represents 121% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.13B | $1.65B | $2.15B | $2.41B | $2.32B | $2.95B | $4.38B | $5.86B | $7.00B | $9.01B |
| Cost of Revenue | $406.1M | $584.4M | $778.0M | $866.4M | $835.6M | $1.07B | $1.71B | $2.23B | $2.51B | $3.24B |
| Gross Profit | $723.1M | $1.06B | $1.37B | $1.54B | $1.48B | $1.88B | $2.68B | $3.63B | $4.49B | $5.77B |
| Research & Development | $273.6M | $349.6M | $442.5M | $462.8M | $486.6M | $586.8M | $728.4M | $854.9M | $996.7M | $1.24B |
| Selling, General & Admin | $206.1M | $241.9M | $252.6M | $275.8M | $295.6M | $369.3M | $420.2M | $518.1M | $550.0M | $675.3M |
| Operating Expenses | $479.7M | $591.5M | $1.10B | $738.6M | $782.2M | $956.0M | $1.15B | $1.37B | $1.55B | $1.91B |
| Operating Income | $243.4M | $470.3M | $273.3M | $805.8M | $699.7M | $924.7M | $1.53B | $2.26B | $2.94B | $3.86B |
| EBITDA | $265.1M | $498.2M | $319.2M | $838.6M | $734.8M | $981.2M | $1.64B | $2.49B | $3.33B | $4.32B |
| Interest Expense | $3.1M | $2.8M | $2.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pre-tax Income | $242.2M | $474.8M | $288.8M | $862.3M | $738.9M | $930.9M | $1.58B | $2.42B | $3.27B | $4.25B |
| Income Tax | $58.0M | $51.6M | -$39.3M | $2.4M | $104.3M | $90.0M | $229.3M | $334.7M | $413.0M | $738.3M |
| Net Income | $184.2M | $423.2M | $328.1M | $859.9M | $634.6M | $840.9M | $1.35B | $2.09B | $2.85B | $3.51B |
| EPS | $0.17 | $0.37 | $0.27 | $0.70 | $0.52 | $0.69 | $1.10 | $1.69 | $2.27 | $2.79 |
| EPS (Diluted) | $0.16 | $0.33 | $0.25 | $0.66 | $0.50 | $0.66 | $1.07 | $1.65 | $2.23 | $2.75 |
| Shares Outstanding (Diluted) | 1,171.6 M | 1,263.6 M | 1,293.5 M | 1,294.1 M | 1,271.4 M | 1,277.0 M | 1,265.8 M | 1,268.5 M | 1,281.1 M | 1,275.7 M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $2.31B | $2.49B | $2.71B | $3.04B |
| Gross Profit | $1.49B | $1.56B | $1.68B | $1.91B |
| Operating Income | $978.2M | $1.03B | $1.16B | $1.38B |
| EBITDA | $1.10B | $1.16B | $1.29B | $1.53B |
| Net Income | $853.0M | $955.8M | $1.02B | $1.21B |
| EPS | $0.68 | $0.76 | $0.81 | $0.96 |
| EPS (Diluted) | $0.67 | $0.75 | $0.80 | $0.95 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $567.9M | $859.2M | $650.0M | $1.11B | $893.2M | $620.8M | $671.7M | $1.94B | $2.76B | $1.96B |
| Short-term Investments | $299.9M | $676.4M | $1.31B | $1.61B | $1.98B | $2.79B | $2.35B | $3.07B | $5.54B | $8.78B |
| Receivables | $253.1M | $247.3M | $331.8M | $392.0M | $389.5M | $516.5M | $923.1M | $1.03B | $1.14B | $1.89B |
| Inventory | $236.5M | $306.2M | $264.6M | $243.8M | $479.7M | $650.1M | $1.29B | $1.95B | $1.83B | $2.25B |
| Total Current Assets | $1.53B | $2.27B | $2.71B | $3.47B | $3.84B | $4.81B | $5.55B | $8.40B | $11.91B | $16.39B |
| Property, Plant & Equipment | $77.0M | $74.3M | $75.4M | $127.0M | $109.5M | $143.8M | $95.0M | $101.6M | $98.8M | $203.1M |
| Goodwill | 0 | 0 | $53.7M | $54.9M | $189.7M | $188.4M | $265.9M | $268.5M | $268.5M | $416.1M |
| Intangible Assets | 0 | 0 | $58.6M | $45.2M | $122.8M | $93.6M | $122.2M | $88.8M | $62.0M | 0 |
| Total Assets | $1.73B | $2.46B | $3.08B | $4.19B | $4.74B | $5.73B | $6.78B | $9.96B | $14.04B | $19.45B |
| Accounts Payable | $79.5M | $52.2M | $93.8M | $92.1M | $134.2M | $202.6M | $232.6M | $435.1M | $381.1M | $651.7M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | $459.6M | $529.9M | $606.5M | $597.1M | $768.2M | $1.11B | $1.29B | $1.92B | $2.73B | $5.38B |
| Long-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | $621.2M | $798.9M | $938.6M | $1.29B | $1.42B | $1.76B | $1.89B | $2.74B | $4.05B | $7.08B |
| Retained Earnings | $435.1M | $859.1M | $1.19B | $1.79B | $2.03B | $2.46B | $3.14B | $5.11B | $7.54B | $9.45B |
| Total Equity | $1.11B | $1.66B | $2.14B | $2.89B | $3.32B | $3.98B | $4.89B | $7.22B | $9.99B | $12.37B |
| Total Debt | $39.6M | $37.7M | $35.4M | $83.0M | $72.4M | $56.5M | $44.0M | 0 | 0 | 0 |
| Net Debt | -$828.2M | -$1.50B | -$1.92B | -$2.64B | -$2.80B | -$3.35B | -$2.98B | -$5.01B | -$8.30B | -$10.74B |
| Working Capital | $1.07B | $1.74B | $2.11B | $2.87B | $3.07B | $3.70B | $4.26B | $6.48B | $9.18B | $11.01B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $2.33B | $1.96B | $2.79B | $2.29B |
| Total Assets | $18.05B | $19.45B | $21.66B | $23.72B |
| Total Liabilities | $6.14B | $7.08B | $8.17B | $8.92B |
| Total Equity | $11.91B | $12.37B | $13.49B | $14.80B |
| Total Debt | 0 | 0 | 0 | 0 |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $184.2M | $423.2M | $328.1M | $859.9M | $634.6M | $840.9M | $1.35B | $2.09B | $2.85B | $3.51B |
| Depreciation & Amortization | $19.7M | $20.6M | $27.7M | $32.8M | $35.2M | $50.3M | $62.7M | $70.6M | $62.0M | $72.6M |
| Stock-based Compensation | $59.0M | $75.4M | $91.2M | $101.3M | $137.0M | $186.9M | $230.9M | $296.8M | $355.4M | $439.2M |
| Change in Working Capital | -$68.4M | $102.5M | $103.6M | $40.8M | -$85.7M | -$6.9M | -$912.8M | -$15.9M | $985.2M | $687.8M |
| Operating Cash Flow | $131.4M | $631.6M | $503.1M | $963.0M | $735.1M | $1.02B | $492.8M | $2.03B | $3.71B | $4.37B |
| Capital Expenditure | -$21.4M | -$15.3M | -$23.8M | -$15.8M | -$15.4M | -$64.7M | -$44.6M | -$34.4M | -$32.0M | -$119.5M |
| Acquisitions | -$2.5M | 0 | -$104.8M | $26.9M | -$224.0M | -$19.9M | -$145.1M | $1.8M | 0 | -$300.0M |
| Stock Repurchased | 0 | 0 | 0 | -$266.1M | -$395.2M | -$411.6M | -$670.3M | -$112.3M | -$423.6M | -$1.60B |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $110.0M | $616.3M | $479.3M | $947.3M | $719.7M | $951.1M | $448.2M | $2.00B | $3.68B | $4.25B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $1.27B | $1.26B | $1.69B | $1.08B |
| Capital Expenditure | -$30.1M | -$37.0M | -$54.5M | -$29.7M |
| Free Cash Flow | $1.24B | $1.22B | $1.64B | $1.05B |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $127.9M | $133.1M | $120.9M | $120.4M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +45.8% | +30.7% | +12.1% | -3.9% | +27.2% | +48.6% | +33.8% | +19.5% | +28.6% | |
| Net Income Growth (YoY) | +129.8% | -22.5% | +162.1% | -26.2% | +32.5% | +60.8% | +54.3% | +36.6% | +23.1% | |
| EPS Growth (YoY) | +117.6% | -25.9% | +155.3% | -25.7% | +32.7% | +59.4% | +53.6% | +34.3% | +22.9% | |
| Shares Change (YoY) | +7.9% | +2.4% | +0.0% | -1.7% | +0.4% | -0.9% | +0.2% | +1.0% | -0.4% | |
| FCF Growth (YoY) | +460.2% | -22.2% | +97.6% | -24.0% | +32.1% | -52.9% | +346.2% | +83.8% | +15.7% | |
| Gross Margin | 64.0% | 64.5% | 63.8% | 64.1% | 63.9% | 63.8% | 61.1% | 61.9% | 64.1% | 64.1% |
| Operating Margin | 21.6% | 28.6% | 12.7% | 33.4% | 30.2% | 31.4% | 34.9% | 38.5% | 42.0% | 42.8% |
| EBITDA Margin | 23.5% | 30.3% | 14.8% | 34.8% | 31.7% | 33.3% | 37.5% | 42.5% | 47.5% | 48.0% |
| Net Margin | 16.3% | 25.7% | 15.3% | 35.7% | 27.4% | 28.5% | 30.9% | 35.6% | 40.7% | 39.0% |
| FCF Margin | 9.7% | 37.4% | 22.3% | 39.3% | 31.1% | 32.3% | 10.2% | 34.1% | 52.5% | 47.2% |
| Effective Tax Rate | 24.0% | 10.9% | -13.6% | 0.3% | 14.1% | 9.7% | 14.5% | 13.8% | 12.6% | 17.4% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.09 | $0.49 | $0.37 | $0.73 | $0.57 | $0.74 | $0.35 | $1.58 | $2.87 | $3.33 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | 1,100.3 M | 1,156.1 M | 1,196.0 M | 1,221.0 M | 1,215.7 M | 1,226.0 M | 1,225.9 M | 1,237.4 M | 1,256.3 M | 1,258.0 M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 30.78% |
| Return on Invested Capital | 21.80% |
| Return on Assets | 17.05% |
| Gross Margin | 63.00% |
| Operating Margin | 43.14% |
| Net Margin | 38.37% |
Financial Health
| Debt / Equity | 0.00 |
| Current Ratio | 2.96 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 16.45 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 35.59 | 39.78 | 48.03 | 18.16 | 34.92 | 52.09 | 27.58 | 34.84 | 48.69 | 46.96 |
| P/B | 6.01 | 10.24 | 7.35 | 5.36 | 6.65 | 11.08 | 7.61 | 10.09 | 13.89 | 13.32 |
| P/S | 5.90 | 10.34 | 7.32 | 6.44 | 9.53 | 14.95 | 8.49 | 12.43 | 19.83 | 18.30 |
| Gross Margin | 64.0% | 64.5% | 63.8% | 64.1% | 63.9% | 63.8% | 61.1% | 61.9% | 64.1% | 64.1% |
| Operating Margin | 21.6% | 28.6% | 12.7% | 33.4% | 30.2% | 31.4% | 34.9% | 38.5% | 42.0% | 42.8% |
| Net Margin | 16.3% | 25.7% | 15.3% | 35.7% | 27.4% | 28.5% | 30.9% | 35.6% | 40.7% | 39.0% |
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Explore sector: Technology · Computer Hardware
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