# Arista Networks, Inc. (ANET)

> Arista sells network switches, routers, software and support that move data for artificial intelligence (AI) centers, cloud data centers, offices and wide-area networks.

- Exchange: New York Stock Exchange · Sector: Technology · Industry: Computer Hardware
- Headquarters: Santa Clara, California
- Founded: 2004
- Employees: Approximately 5,115 (December 31, 2025)
- SEC CIK: 0001596532 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001596532))
- Full page: https://inspectstocks.com/stocks/anet
- Data as of: price 2026-09-25; newest filing used 2026-08-05; latest fiscal period ended 2026-06-30

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $10.5B | $5.3B |
| Revenue growing recently | passed | $10.5B | $9B |
| Free cash flow positive | passed | $4.3B |  |
| Free cash flow growing overall | passed | $4.3B | $448.2M |
| Free cash flow growing recently | passed | $4.3B | $3.7B |

Business quality (the + / − mark): 6 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 38.4% |  |
| Healthy profit margin | passed | 38.4% |  |
| Strong operating margin | passed | 43.1% |  |
| Good return on equity | passed | 32.7% |  |
| Debt under control | passed | 0.00 |  |
| Turns sales into cash | passed | 40.3% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $10.5B |
| Net income, trailing twelve months | $4B |
| Free cash flow, trailing twelve months | $4.3B |
| Net margin | 38.4% |
| Operating margin | 43.1% |
| Return on equity | 32.7% |
| Debt to equity | 0.00 |
| Diluted EPS, trailing twelve months | $3.17 |
| Share price | $206.55 |
| Market value | $260.5B |
| Price / earnings | 65.2x |
| Price / sales | 24.7x |

## What the business does

Arista makes switches and routers that move data between computers, servers and other network equipment. Its Extensible Operating System (EOS) runs on its networking equipment, while software such as CloudVision helps customers monitor and manage their networks. Customers include large cloud and AI companies, other service providers, businesses and government agencies.

### How it makes money

- **Networking products** (85.8% of revenue (three months ended June 30, 2026)) — Customers buy switches, routers and related network applications, either directly from Arista or through sales partners.
- **Support and services** (14.2% of revenue (three months ended June 30, 2026)) — Customers pay for support contracts, including post-contract support (PCS), often when they buy networking products, and may pay again to renew support.

### Products

- **Etherlink** — A family of switches for connecting AI computers across racks and between sites. Examples include the 7800R AI Spine, 7060 AI Leaf and 7700R4 Distributed Etherlink Switch.
- **Campus networking equipment** — Switches and Wi-Fi access points that connect people and devices in offices and other workplaces.
- **Cloud-grade routing** — Routers that direct data between data centers, cloud services, offices and other networks. Named products include the 7280R4, 7500R3 and 7800R4.
- **EOS** — The software that runs Arista's networking equipment and controls how it handles data and network changes.
- **CloudVision, NetDL and AVA** — Software for managing network equipment, collecting network data and helping staff find and respond to network problems.
- **Arista A-Care Services** — Customer support that includes help from support engineers, software updates and options for replacing equipment.

### Customers

- Large cloud and AI companies, which buy networking equipment for their data centers and AI computing sites.
- Microsoft and Meta, which Arista's chief executive described on the latest earnings call as two of its long-standing customer relationships.
- AI and specialty providers, including newer cloud providers that build or rent computing capacity.
- Businesses across industries such as financial services, media, health care, energy, education and manufacturing.
- Government agencies, which buy through the company's direct sales team and sales partners.

### Competitors

- Cisco Systems (CSCO) — Network switches, routers, campus equipment and network security products.
- Hewlett Packard Enterprise (HPE) — Network equipment and software, including the Juniper Networks networking business.
- Dell Technologies (DELL) — Data center networking equipment and systems.
- NVIDIA (NVDA) — Networking for AI computer clusters, including systems built around its NVLink technology.
- Extreme Networks (EXTR) — Campus and data center networking equipment.
- Huawei — Network equipment for data centers and campuses.

### What it depends on

- A small number of customers account for substantial sales: one customer represented 26% of revenue (fiscal year ended December 31, 2025, high), and another represented 16% of revenue (fiscal year ended December 31, 2025, high).
- Arista relies primarily on Broadcom for switching chips, and some important components come from a limited number of suppliers or sole-source suppliers.
- Arista uses outside manufacturers to build most of its products. Its purchase obligations were $9.7 billion (June 30, 2026, high), including non-cancellable commitments for products and components.

### What could go wrong

- Large customers can change the timing or size of orders, and their purchases make up a substantial share of revenue. Arista says order timing can vary with customer spending plans, product deployments and testing.
- Shortages or delays in chips, memory and other components can hold up shipments or raise costs. Large purchase commitments also leave Arista exposed if customer demand or product requirements change.
- The networking market changes quickly. Customers may choose competing systems, including white-box equipment, or use alternatives such as InfiniBand or NVIDIA's NVLink for AI computing networks; Arista could lose sales if its products do not meet changing customer needs.

## More on this company

- [Overview](https://inspectstocks.com/stocks/anet)
- [Financial statements](https://inspectstocks.com/stocks/anet/financials)
- [Competitors](https://inspectstocks.com/stocks/anet/peers)
- [Earnings](https://inspectstocks.com/stocks/anet/earnings)

---

Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.