Arista Networks
ANET
$182.57
+0.78%
Arista Networks is a leading provider of high-speed Ethernet switches and software for data centers, operating in the computer hardware industry. The company has carved out a distinct competitive identity as a disruptor in networking, leveraging its proprietary Extensible Operating System (EOS) to offer a single-image software platform across all devices, which has driven steady market share gains since its founding in 2004. The current investor narrative centers on Arista's pivotal role in AI networking infrastructure, with recent news highlighting a raised AI revenue target to $3.5 billion and strong demand from hyperscale customers like Microsoft and Meta, though supply chain constraints and conservative guidance have introduced near-term debate.…
ANET
Arista Networks
$182.57
Related headlines
ANET 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Arista Networks's 12-month outlook, with a consensus price target around $237.34 and implied upside of +30.0% versus the current price.
Average Target
$237.34
11 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
11
covering this stock
Price Range
$146 - $237
Analyst target range
Arista Networks is covered by 11 analysts, with a consensus leaning bullish. Ratings include multiple Buy/Overweight ratings from firms like Needham, Goldman Sachs, and Keybanc, with only Rosenblatt at Neutral. The average target price is not explicitly provided, but based on estimated EPS of $7.09 and a forward P/E of 41.97x, the implied target is approximately $297.60, representing 59% upside from the current price of $186.96. The consensus recommendation is Overweight/Buy. The target range is not given, but the high estimate of $7.58 EPS implies a potential target of $318.30 (using forward P/E), while the low estimate of $6.79 EPS implies $285.10. The wide spread suggests uncertainty, but the consistent bullish ratings from major firms indicate strong conviction. Recent ratings actions have been reaffirmations, with no downgrades, signaling continued confidence in Arista's AI-driven growth story.
ANET Technical Analysis
Arista Networks is in a sustained uptrend, with a 1-year price change of +75.9%, significantly outperforming the S&P 500's +20.6%. The current price of $186.96 sits at 98.5% of its 52-week range ($104.68 to $189.82), indicating the stock is near its highs and reflecting strong momentum, though it also suggests potential overextension. The 1-month price change of +23.2% and 3-month change of +26.9% show accelerating short-term momentum, aligning with the longer-term uptrend. However, the stock experienced a sharp pullback in early May 2026 (from $172.70 to $136.43 in a week), followed by a recovery, indicating volatility. The RSI is not directly provided, but the rapid price appreciation suggests it may be in overbought territory. The 52-week low of $104.68 serves as key support, while the 52-week high of $189.82 is immediate resistance. A breakout above $189.82 could signal a continuation of the uptrend, while a breakdown below $104.68 would be a bearish reversal. Beta of 1.601 indicates the stock is 60% more volatile than the market, meaning larger price swings and higher risk.
Beta
1.60
1.60x market volatility
Max Drawdown
-28.3%
Largest decline past year
52-Week Range
$105-$190
Price range past year
Annual Return
+68.5%
Cumulative gain past year
| Period | ANET Return | S&P 500 |
|---|---|---|
| 1m | +11.8% | +1.4% |
| 3m | +18.3% | +7.4% |
| 6m | +39.8% | +8.6% |
| 1y | +68.5% | +20.3% |
| ytd | +36.7% | +10.3% |
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ANET Fundamental Analysis
Revenue is growing strongly, with Q4 2025 revenue of $2.49 billion, up 28.9% year-over-year, accelerating from 19.3% growth in Q4 2024. The multi-quarter trend shows sequential acceleration from $1.57 billion in Q1 2024 to $2.49 billion in Q4 2025, driven by product revenue of $2.10 billion (84% of total) and service revenue of $392 million. The growth is fueled by AI networking demand, with the company raising its AI revenue target to $3.5 billion. Arista is highly profitable, with Q4 2025 net income of $955.8 million and a net margin of 38.4%, up from 41.5% in Q4 2024. Gross margin was 62.9% in Q4 2025, slightly down from 63.8% in Q4 2024, but operating margin improved to 41.5% from 41.4%. The company has no debt, with a debt-to-equity ratio of 0, and a current ratio of 3.05, indicating strong liquidity. Free cash flow (FCF) for Q4 2025 was $1.22 billion, and trailing twelve-month FCF was $4.25 billion, providing ample internal funding for growth. ROE is 28.4%, reflecting efficient capital use.
Quarterly Revenue
$2.5B
2025-12
Revenue YoY Growth
+28.9%
YoY Comparison
Gross Margin
62.9%
Latest Quarter
Free Cash Flow
$4.3B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ANET Overvalued?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 46.96x, while the forward P/E is 41.97x, implying the market expects earnings growth to moderate. The gap between trailing and forward P/E suggests a 10.6% expected earnings increase over the next year. Compared to the industry average (not provided, but typically for computer hardware around 20-25x), Arista trades at a significant premium. Its P/E of 46.96x is roughly double the sector median, justified by its superior growth (28.9% revenue growth) and high net margins (38.4%). Historically, Arista's trailing P/E has ranged from 21.75x (Q4 2022) to 53.72x (Q3 2025). The current 46.96x is near the higher end of its historical band, indicating the market is pricing in optimistic growth expectations. The PEG ratio of 2.05x suggests the stock is not cheap relative to its growth rate.
PE
47.0x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 22x~54x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
37.7x
Enterprise Value Multiple