ANET

Arista Networks, Inc.

TechnologyCIK 0001596532

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Market Cap
$154.39B
P/E (TTM)
41.5x
Rev Growth (TTM)
+30.6%
Net Margin (TTM)
38.3%
FCF Yield (TTM)
3.4%
FCF Margin (TTM)
54.4%

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LATEST EARNINGS

Q4 2025
5 months ago
View source
Revenue
$2.49B
+28.9%
Net Income
$955.80M
+19.3%
EPS
$0.75
+21.0%
Gross
62.9% -0.9%
Operating
41.5% +0.1%
Net
38.4% -3.1%
  • Revenue of $2.488 billion, an increase of 7.8% compared to the third quarter of 2025, and an increase of 28.9% from the fourth quarter of 2024.
  • GAAP net income of $955.8 million, or $0.75 per diluted share, an increase from $0.62 per diluted share in Q4 2024.
  • Full year revenue of $9.006 billion, an increase of 28.6% compared to fiscal year 2024.
  • Non-GAAP operating margin of 47.5% in Q4 2025, an increase from 47.0% in Q4 2024.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$5.3B
Q1 '26
$1.6B+30%
Q4 '25
$1.3B+2%
FCF Margin
TTM54.4%
Q1 '2660.5%+19%
Sector: 8.5%Top 10%
OCF Margin55.9%
OCF/NI1.46x
CapEx Coverage39.6x
FCF Yield3.4%
FCF Growth (2Y)+105%
Cash Conversion Cycle
229 days
DSO: 63+DIO: 222DPO: 56

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM0.5%
Div Yield0.0%
+
Buyback (TTM)0.5%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$5.3B
Stock Repurchases (TTM)$816.0M
Capital Return / FCF15.4%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
28.8%
Stable
-0.0% YoY-1.7%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
34.9%
8Q: 36.1%
Asset Turnover
0.54x
8Q: 0.56x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 18.8%28.8% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
54.31x
8Q:66.74x
-2913.4%
Invested Cap Turn
0.86x
8Q:0.86x
Flat
CapEx Intensity
1.2%
8Q:0.9%
CapEx/Depreciation
1.67x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
41.5x
Volatile
8Q: 164.0x+823%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
41.5x
vs sector
Cash Flow
27.3x
EV/FCF vs
Growth-Adj
1.8xPEG
Fair for growth
Quality-Adj
1.4P/E per %ROIC
ROIC: 28.8%
Shareholder Returns
Dividend
Buyback
0.5%
Total Yield
0.5%
Market Cap$154.39B
EV$144.40B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
98/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
31.7%
8Q:
Return on Invested Capital (ROIC)Top 25%
28.8%
8Q:
Flat
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 34.9%
Asset Turnover: 0.54x

Earnings Quality

Cash Conversion

1.46x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin63.5%

Capital Efficiency

Invested Capital Turnover0.86x

Working Capital

Cash Conversion Cycle229 days

Growth Quality & Momentum

Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
30.6%
OpInc Growth YoY
34.8%
EPS Growth YoY
23.5%
FCF 3Y CAGR
105.4%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue
Sustainability Index: 8.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
63.5%
Operating
42.8%
Top 25% in sector
Net
38.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+16.1 pts
FCF: 54.4% | Net: 38.3%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $12.35B
Interest Coverage
+Net cash position: $12.35B
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis