ANET

Arista Networks, Inc.

Technology • CIK: 0001596532

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Market Cap
$164.84B
P/E (TTM)
46.8x
Rev Growth (TTM)
+28.6%
Net Margin (TTM)
39.0%
FCF Yield (TTM)
2.7%
FCF Margin (TTM)
48.5%

Filing Intelligence

6.0/10
10-K filed Feb 17, 2026 • FY 2025

Executive Summary

The company has non-cancellable purchase commitments with suppliers for excess or obsolete inventory, posing a risk to gross margins if demand forecasts are not met or supplier execution falters.....

Key Concerns

  • ●Gross margins remained stable despite supply chain pressures and pricing dynamics with large customers.
  • ●Revenue quality is good but carries concerns regarding customer concentration and order timing volatility from key clients.
  • ●The company has non-cancellable purchase commitments with suppliers for excess or obsolete inventory, posing a risk to gross margins if...

Key Strengths

  • ●Revenue growth accelerated in 2025, driven by strong demand for core switching and routing products and expanding service contracts.
  • ●Operating cash flow generation is robust, significantly exceeding net income, supported by favorable working capital movements like...
  • ●Significant investments in R&D are underway, signaling a focus on innovation and expanding product capabilities, particularly in AI.
View Full Quarterly Insights →

LATEST EARNINGS

•
Q4 2025
•
about 2 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.
View Full Earnings →

Cash Flow Health

Free Cash Flow8/8 positive
TTM$4.4B
Q4 '25
$1.3B+2%
Q3 '25
$1.2B+5%
FCF Margin
TTM48.5%
Q4 '2550.7%-5%
Sector: 9.1%Top 10%
OCF Margin48.5%
OCF/NI1.25x
CapEx Coverage–
FCF Yield2.7%
FCF Growth (2Y)+107%
Cash Conversion Cycle
239 days
DSO: 61+DIO: 232−DPO: 54
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM1.0%
Div Yield0.0%
+
Buyback (TTM)1.0%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$4.4B
Stock Repurchases (TTM)$1.6B
Capital Return / FCF36.7%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
28.9%
Moderate
-0.0% YoY+15.8%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
35.4%
8Q: 36.6%
Asset Turnover
0.55x
8Q: 0.56x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 19.4% ≈ 28.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
60.06x
8Q:66.74x
-1505.1%
Invested Cap Turn
0.85x
8Q:0.86x
Flat
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$9.0B
$2.5B↑7.8%
$2.3B↑4.7%
$2.2B↑10.0%
$2.0B↑3.9%
$1.9B↑6.6%
$1.8B↑7.1%
$1.7B↑7.6%
$1.6B
Operating Income
$3.9B
$1.0B↑5.6%
$978.2M↓0.8%
$986.2M↑14.8%
$858.8M↑7.4%
$799.6M↑1.8%
$785.3M↑12.2%
$699.6M
$0
Net Income
$3.5B
$955.8M↑12.1%
$853.0M↓4.0%
$888.8M↑9.2%
$813.8M↑1.6%
$801.0M↑7.1%
$748.0M↑12.4%
$665.4M↑4.3%
$637.7M
Operating Cash Flow
$4.4B
$1.3B↓0.5%
$1.3B↑5.7%
$1.2B↑87.0%
$641.7M↓37.8%
$1.0B↓12.2%
$1.2B↑18.8%
$989.0M↑92.5%
$513.8M
Free Cash Flow
$4.4B
$1.3B↑1.9%
$1.2B↑5.3%
$1.2B↑91.8%
$613.3M↓40.5%
$1.0B↓11.7%
$1.2B↑18.4%
$985.8M↑95.4%
$504.4M
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
46.8x
Volatile
8Q: 193.5x-54843%
Valuation Lenses
Earnings
46.8x
vs – sector
Cash Flow
35.6x
EV/FCF vs –
Growth-Adj
2.0xPEG
Fair for growth
Quality-Adj
1.6P/E per %ROIC
ROIC: 28.9%
Shareholder Returns
Dividend
–
Buyback
1.0%
Total Yield
1.0%
Market Cap$164.84B
EV$155.68B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
84/100
Exceptional

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

Returns on Capital

Return on Equity (ROE)Top 25%
31.8%
8Q:–
Return on Invested Capital (ROIC)Top 25%
28.9%
8Q:–
+15.8%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 35.4%
Asset Turnover: 0.55x

Earnings Quality

Cash Conversion

1.25x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin64.1%

Capital Efficiency

Invested Capital Turnover0.85x

Working Capital

Cash Conversion Cycle239 days

Growth Quality & Momentum

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

Growth Rates

Revenue Growth YoY
28.6%
OpInc Growth YoY
29.2%
EPS Growth YoY
23.8%
FCF 3Y CAGR
107.0%

Growth Quality Analysis

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

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
64.1%
Operating
42.8%
Top 25% in sector
Net
39.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+9.6 pts
FCF: 48.5% | Net: 39.0%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $10.74B
Interest Coverage
–
+Net cash position: $10.74B
Balance sheet risk & solvency analysis

Research

All research