Arista Networks, Inc. (ANET) Stock Analysis

Analysis from 10-Q filed 2026-08-05. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 29.1%. FCF margin 49.0%. Source: 10-Q filed 2026-08-05.

Metric	Value	Context
ROIC	29.1%	Above industry average
FCF Margin	49.0%	Strong cash generation

ROIC 29.1% — Top 5% of sector peers. FCF margin 49.0% — 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 29.1% ROIC, Top 5% in Technology

ROIC TTM 29.1%, sector median 3.7%, Top 5%. DuPont: NOPAT margin 35.0% × asset turnover 0.5x. Gross margin 63.0%. Operating margin 43.1%. Source: 10-Q filed 2026-08-05.

Metric	ANET	Rating	Context
Return on Invested Capital (ROIC)	29.1%	Excellent	Above sector median of 3.7%
Return on Equity (ROE)	32.0%	Excellent	Efficient use of shareholder equity
Gross Margin	63.0%	Excellent	Strong pricing power
Operating Margin	43.1%	Excellent	Efficient operations

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Cash Flow: Arista Networks, Inc. generates $5.2B FCF at 49.0% margin, positive NaN/8 quarters

FCF TTM $5.2B. FCF margin 49.0%, Top 5%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-05.

Metric	ANET	Rating	Context
Free Cash Flow Margin	49.0%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$5.2B	Good	Positive cash generation
OCF/Net Income	1.3x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet Analysis for Arista Networks, Inc.

Source: 10-Q filed 2026-08-05.

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Valuation: Arista Networks, Inc. trades at 63.1x earnings

P/E 63.1x. EV/Sales 23.0x. FCF yield 2.0%. Source: 10-Q filed 2026-08-05.

Metric	ANET	Rating	Context
P/E Ratio	63.1x	Warning	Premium valuation
EV/Sales	23.0x	Warning	Growth premium priced in
FCF Yield	2.0%	Adequate	Lower cash yield

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Capital Allocation: Arista Networks, Inc. returns 0.2% shareholder yield

Total shareholder yield 0.2% (buyback 0.2%). Share count +0.4% YoY. Capital returned $620.1M TTM. Source: 10-Q filed 2026-08-05.

Metric	ANET	Rating	Context
Total Shareholder Yield	0.2%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.2%	Adequate	Minimal buyback activity
Share Count Change (YoY)	0.4%	Adequate	Net dilution from issuance/SBC
Total Capital Returned (TTM)	$620.1M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	29.1%	Top 5%	7.8x above
Free Cash Flow Margin	49.0%	Top 5%	4.8x above
Gross Margin	63.0%	Top 50%	1.2x above
Operating Margin	43.1%	Top 5%	9.9x above
Return on Equity (ROE)	32.0%	Top 25%	6.0x above
P/E Ratio	63.1x	N/A	-

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Financial Scorecard

Metric	ANET	Rating	Sector Context
Return on Invested Capital (ROIC)	29.1%	Excellent	Top 5% of sector (median: 3.7%)
Free Cash Flow Margin	49.0%	Excellent	Top 5% of sector (median: 10.3%)
Gross Margin	63.0%	Excellent	Top 50% of sector (median: 50.5%)
P/E Ratio (Price-to-Earnings)	63.1x	Warning	High expectations priced in
Free Cash Flow Yield	2.0%	Warning	Growth-focused valuation

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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 29.1%. The 8-quarter median ROIC is 29.5% with a declining trend. Sector median 3.7%. Source: 10-Q filed 2026-08-05.

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

Arista Networks, Inc. (ANET) has a free cash flow margin of 49.0%, generating $5.2 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-08-05.

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 63.1x, which is above the sector median of N/A. EV/Sales 23.0x. FCF yield 2.0%. Source: 10-Q filed 2026-08-05.

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

Arista Networks, Inc. (ANET) grew revenue by 32.6% year-over-year. EPS +24.7% YoY. Source: 10-Q filed 2026-08-05.

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

Arista Networks, Inc. (ANET) repurchased $620.1 million of stock over the trailing twelve months. This represents a buyback yield of 0.2%. Share count +0.4% YoY. Source: 10-Q filed 2026-08-05.

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

Compared to other companies in Technology, Arista Networks, Inc. (ANET) shows: ROIC 29.1%, sector median 3.7% (Top 5%). FCF margin 49.0%, sector median 10.3% (Top 5%). Gross margin 63.0%, 12.5pp 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 2026-08-05.

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Data Source: Data sourced from 10-Q filed 2026-08-05. TTM metrics as of Q2 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.