Arista Networks, Inc. (ANET) Stock Analysis

Analysis from 10-Q filed 2025-11-05. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 28.8%. FCF margin 54.4%. D/E 0.0x. Source: 10-Q filed 2025-11-05.

Metric	Value	Context
ROIC	28.8%	Above industry average
FCF Margin	54.4%	Strong cash generation
Debt/Equity	0.0x	Conservative leverage

ROIC 28.8% — Top 5% of sector peers. FCF margin 54.4% — Top 5%.

Explore Arista Networks, Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ANET: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Arista Networks, Inc. earns 28.8% ROIC, Top 5% in Technology

ROIC TTM 28.8%, sector median 3.6%, Top 5%. DuPont: NOPAT margin 34.9% × asset turnover 0.5x. Gross margin 63.5%. Operating margin 42.8%. Source: 10-Q filed 2025-11-05.

Metric	ANET	Rating	Context
Return on Invested Capital (ROIC)	28.8%	Excellent	Above sector median of 3.6%
Return on Equity (ROE)	31.7%	Excellent	Efficient use of shareholder equity
Gross Margin	63.5%	Excellent	Strong pricing power
Operating Margin	42.8%	Excellent	Efficient operations

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Cash Flow: Arista Networks, Inc. generates $5.3B FCF at 54.4% margin, positive NaN/8 quarters

FCF TTM $5.3B. FCF margin 54.4%, Top 5%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.

Metric	ANET	Rating	Context
Free Cash Flow Margin	54.4%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$5.3B	Good	Positive cash generation
OCF/Net Income	1.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Arista Networks, Inc. at 0.0x leverage

Debt/Equity 0.0x. Source: 10-Q filed 2025-11-05.

Metric	ANET	Rating	Context
Debt to Equity	0.0x	Excellent	Conservative capital structure

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Valuation: Arista Networks, Inc. trades at 41.5x earnings

P/E 41.5x. EV/Sales 14.9x. FCF yield 3.4%. Source: 10-Q filed 2025-11-05.

Metric	ANET	Rating	Context
P/E Ratio	41.5x	Adequate	Premium valuation
EV/Sales	14.9x	Warning	Growth premium priced in
FCF Yield	3.4%	Adequate	Lower cash yield

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Capital Allocation: Arista Networks, Inc. returns 0.5% shareholder yield

Total shareholder yield 0.5% (buyback 0.5%). Capital returned $816.0M TTM. Source: 10-Q filed 2025-11-05.

Metric	ANET	Rating	Context
Total Shareholder Yield	0.5%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.5%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$816.0M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	28.8%	Top 5%	8.1x above
Free Cash Flow Margin	54.4%	Top 5%	6.4x above
Gross Margin	63.5%	Top 50%	1.3x above
Operating Margin	42.8%	Top 5%	9.4x above
Return on Equity (ROE)	31.7%	Top 25%	5.9x above
P/E Ratio	41.5x	N/A	-

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Financial Scorecard

Metric	ANET	Rating	Sector Context
Return on Invested Capital (ROIC)	28.8%	Excellent	Top 5% of sector (median: 3.6%)
Free Cash Flow Margin	54.4%	Excellent	Top 5% of sector (median: 8.6%)
Gross Margin	63.5%	Excellent	Top 50% of sector (median: 49.9%)
Debt to Equity Ratio	0.0%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	41.5x	Adequate	High expectations priced in
Free Cash Flow Yield	3.4%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is Arista Networks, Inc.'s Return on Invested Capital (ROIC)?

Arista Networks, Inc. (ANET) has a trailing twelve-month Return on Invested Capital (ROIC) of 28.8%. Sector median 3.6%. Source: 10-Q filed 2025-11-05.

Q: What is Arista Networks, Inc.'s Free Cash Flow Margin?

Arista Networks, Inc. (ANET) has a free cash flow margin of 54.4%, generating $5.3 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-05.

Q: What is Arista Networks, Inc.'s P/E ratio and how does it compare to peers?

Arista Networks, Inc. (ANET) trades at a P/E ratio of 41.5x, which is above the sector median of N/A. EV/Sales 14.9x. FCF yield 3.4%. Source: 10-Q filed 2025-11-05.

Q: What is Arista Networks, Inc.'s revenue and earnings growth?

Arista Networks, Inc. (ANET) grew revenue by 30.6% year-over-year. EPS +23.5% YoY. Source: 10-Q filed 2025-11-05.

Q: Is Arista Networks, Inc. buying back stock?

Arista Networks, Inc. (ANET) repurchased $816.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.5%. Source: 10-Q filed 2025-11-05.

Q: How does Arista Networks, Inc. compare to competitors in Technology?

Compared to other companies in Technology, Arista Networks, Inc. (ANET) shows: ROIC 28.8%, sector median 3.6% (Top 5%). FCF margin 54.4%, sector median 8.6% (Top 5%). Gross margin 63.5%, 13.6pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Arista Networks, Inc.?

No quantitative warning flags fired for Arista Networks, Inc. (ANET) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-11-05.

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Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.