Arista Networks (ANET)
Market Price (7/24/2026): $176.89 | Market Cap: $222.5 BilInvestor Relations Sector: Information Technology | Industry: Communications Equipment
Arista Networks (ANET)
Market Price (7/24/2026): $176.89Market Cap: $222.5 BilSector: Information TechnologyIndustry: Communications Equipment
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 31% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 43% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 56%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 54%, CFO LTM is 5.4 Bil, FCF LTM is 5.3 Bil Stock buyback supportStock Buyback 3Y Total is 2.1 Bil Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, and 5G & Advanced Connectivity. Themes include Data Centers & Infrastructure, Show more. | Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.7% Key risksANET key risks include [1] a heavy reliance on a few major cloud customers like Microsoft and Meta and [2] a dependence on sole or limited-source suppliers for critical components such as merchant silicon. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 31% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 43% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 56%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 54%, CFO LTM is 5.4 Bil, FCF LTM is 5.3 Bil |
| Stock buyback supportStock Buyback 3Y Total is 2.1 Bil |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, and 5G & Advanced Connectivity. Themes include Data Centers & Infrastructure, Show more. |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.7% |
| Key risksANET key risks include [1] a heavy reliance on a few major cloud customers like Microsoft and Meta and [2] a dependence on sole or limited-source suppliers for critical components such as merchant silicon. |
Qualitative Assessment
AI Analysis | Feedback
Arista Networks (ANET) stock has gained about 45% since 3/31/2026 because of the following key factors:
1. Exceeding Fiscal Q1 2026 Earnings Expectations and Raising Full Fiscal Year 2026 Guidance.
Arista Networks reported strong fiscal Q1 2026 results on May 5, 2026, with revenue of $2.71 billion, surpassing its guidance of $2.6 billion and representing 35.1% year-over-year growth. Non-GAAP diluted earnings per share (EPS) reached $0.87, beating the consensus estimate of $0.81. Despite an initial 13.6% stock drop immediately following the announcement due to supply chain concerns, the company's confidence in future performance was underscored by raising its full fiscal year 2026 revenue growth outlook to 27.7%, targeting approximately $11.5 billion.
2. Accelerated Demand for AI-Driven Networking Solutions and Strategic Product Launches.
The company experienced robust demand for its AI connectivity and Ethernet switching solutions, with AI workloads scaling significantly. This was further bolstered by the introduction of new offerings, including the Arista 7060XE7 Series, a portfolio of 1.6-terabit networking platforms designed for rack-scale AI infrastructure, and XPO high-density liquid-cooled pluggable optics for next-generation AI data centers. This strong momentum led Arista to increase its AI fabrics revenue target for fiscal year 2026 from $3.25 billion to $3.5 billion, signaling substantial growth in this critical sector.
Show more
Arista Networks (ANET) stock has gained about 45% since 3/31/2026 because of the following key factors:
1. Exceeding Fiscal Q1 2026 Earnings Expectations and Raising Full Fiscal Year 2026 Guidance.
Arista Networks reported strong fiscal Q1 2026 results on May 5, 2026, with revenue of $2.71 billion, surpassing its guidance of $2.6 billion and representing 35.1% year-over-year growth. Non-GAAP diluted earnings per share (EPS) reached $0.87, beating the consensus estimate of $0.81. Despite an initial 13.6% stock drop immediately following the announcement due to supply chain concerns, the company's confidence in future performance was underscored by raising its full fiscal year 2026 revenue growth outlook to 27.7%, targeting approximately $11.5 billion.
2. Accelerated Demand for AI-Driven Networking Solutions and Strategic Product Launches.
The company experienced robust demand for its AI connectivity and Ethernet switching solutions, with AI workloads scaling significantly. This was further bolstered by the introduction of new offerings, including the Arista 7060XE7 Series, a portfolio of 1.6-terabit networking platforms designed for rack-scale AI infrastructure, and XPO high-density liquid-cooled pluggable optics for next-generation AI data centers. This strong momentum led Arista to increase its AI fabrics revenue target for fiscal year 2026 from $3.25 billion to $3.5 billion, signaling substantial growth in this critical sector.
3. Substantial Order Backlog and Increased Purchase Commitments.
Arista Networks demonstrated strong future revenue visibility through a significant increase in purchase commitments, which jumped to $8.9 billion from $6.8 billion in the prior quarter. This was done to secure multi-year component supply amidst industry-wide shortages. Additionally, deferred revenue climbed by approximately $643 million to $3.63 billion (product deferred revenue portion) and overall deferred revenue to $6.2 billion from $5.37 billion, reflecting strong order intake and extended customer acceptance cycles for its new AI products rather than softening demand.
4. Positive Analyst Sentiment and Upgraded Price Targets.
Analyst confidence in Arista Networks remained broadly positive, with a consensus "Strong Buy" rating. Throughout the period, numerous analysts updated and raised their price targets, reflecting optimism about the company's growth prospects and AI initiatives. For example, TD Cowen raised its price target to $210 on July 13, 2026, Keybanc increased its target to $200 on June 18, 2026, and Morgan Stanley adjusted its target to $190 on June 12, 2026. Furthermore, Erste Group Bank upgraded Arista Networks from a "hold" to a "buy" rating on July 15, 2026.
Show less
Stock Movement Drivers
Fundamental Drivers
The 43.8% change in ANET stock from 3/31/2026 to 7/23/2026 was primarily driven by a 35.8% change in the company's P/E Multiple.| (LTM values as of) | 3312026 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 122.78 | 176.61 | 43.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 9,006 | 9,710 | 7.8% |
| Net Income Margin (%) | 39.0% | 38.3% | -1.7% |
| P/E Multiple | 44.0 | 59.7 | 35.8% |
| Shares Outstanding (Mil) | 1,258 | 1,258 | 0.0% |
| Cumulative Contribution | 43.8% |
Market Drivers
3/31/2026 to 7/23/2026| Return | Correlation | |
|---|---|---|
| ANET | 43.8% | |
| Market (SPY) | 13.5% | 40.8% |
| Sector (XLK) | 34.3% | 54.9% |
Fundamental Drivers
The 34.8% change in ANET stock from 12/31/2025 to 7/23/2026 was primarily driven by a 21.6% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 131.03 | 176.61 | 34.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 8,448 | 9,710 | 14.9% |
| Net Income Margin (%) | 39.7% | 38.3% | -3.6% |
| P/E Multiple | 49.1 | 59.7 | 21.6% |
| Shares Outstanding (Mil) | 1,258 | 1,258 | 0.0% |
| Cumulative Contribution | 34.8% |
Market Drivers
12/31/2025 to 7/23/2026| Return | Correlation | |
|---|---|---|
| ANET | 34.8% | |
| Market (SPY) | 8.5% | 48.1% |
| Sector (XLK) | 24.1% | 59.1% |
Fundamental Drivers
The 72.6% change in ANET stock from 6/30/2025 to 7/23/2026 was primarily driven by a 40.2% change in the company's P/E Multiple.| (LTM values as of) | 6302025 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 102.31 | 176.61 | 72.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 7,436 | 9,710 | 30.6% |
| Net Income Margin (%) | 40.7% | 38.3% | -5.9% |
| P/E Multiple | 42.6 | 59.7 | 40.2% |
| Shares Outstanding (Mil) | 1,260 | 1,258 | 0.2% |
| Cumulative Contribution | 72.6% |
Market Drivers
6/30/2025 to 7/23/2026| Return | Correlation | |
|---|---|---|
| ANET | 72.6% | |
| Market (SPY) | 20.5% | 47.1% |
| Sector (XLK) | 41.5% | 57.4% |
Fundamental Drivers
The 335.9% change in ANET stock from 6/30/2023 to 7/23/2026 was primarily driven by a 100.0% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 6302023 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 40.52 | 176.61 | 335.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,856 | 9,710 | 100.0% |
| Net Income Margin (%) | 31.2% | 38.3% | 22.7% |
| P/E Multiple | 32.8 | 59.7 | 82.0% |
| Shares Outstanding (Mil) | 1,228 | 1,258 | -2.4% |
| Cumulative Contribution | 335.9% |
Market Drivers
6/30/2023 to 7/23/2026| Return | Correlation | |
|---|---|---|
| ANET | 335.9% | |
| Market (SPY) | 72.4% | 53.8% |
| Sector (XLK) | 109.1% | 64.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| ANET Return | 98% | -16% | 94% | 88% | 19% | 33% | 863% |
| Peers Return | 62% | -12% | 20% | 37% | 47% | 111% | 625% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% |
Monthly Win Rates [3] | |||||||
| ANET Win Rate | 75% | 42% | 67% | 83% | 75% | 57% | |
| Peers Win Rate | 65% | 40% | 60% | 63% | 57% | 69% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| ANET Max Drawdown | -17% | -37% | -22% | -20% | -50% | -23% | |
| Peers Max Drawdown | -16% | -41% | -25% | -32% | -38% | -24% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: CSCO, HPE, DELL, EXTR, CIEN. See ANET Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/23/2026 (YTD)
How Low Can It Go
| Event | ANET | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -38.1% | -18.8% |
| % Gain to Breakeven | 61.4% | 23.1% |
| Time to Breakeven | 96 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -14.4% | -7.8% |
| % Gain to Breakeven | 16.8% | 8.5% |
| Time to Breakeven | 51 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -13.2% | -9.5% |
| % Gain to Breakeven | 15.2% | 10.5% |
| Time to Breakeven | 4 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -36.4% | -24.5% |
| % Gain to Breakeven | 57.3% | 32.4% |
| Time to Breakeven | 263 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -30.2% | -33.7% |
| % Gain to Breakeven | 43.3% | 50.9% |
| Time to Breakeven | 72 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -27.7% | -19.2% |
| % Gain to Breakeven | 38.4% | 23.8% |
| Time to Breakeven | 53 days | 105 days |
In The Past
Arista Networks's stock fell -38.1% during the 2025 US Tariff Shock. Such a loss loss requires a 61.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | ANET | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -38.1% | -18.8% |
| % Gain to Breakeven | 61.4% | 23.1% |
| Time to Breakeven | 96 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -36.4% | -24.5% |
| % Gain to Breakeven | 57.3% | 32.4% |
| Time to Breakeven | 263 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -30.2% | -33.7% |
| % Gain to Breakeven | 43.3% | 50.9% |
| Time to Breakeven | 72 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -27.7% | -19.2% |
| % Gain to Breakeven | 38.4% | 23.8% |
| Time to Breakeven | 53 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -35.4% | -12.2% |
| % Gain to Breakeven | 54.7% | 13.9% |
| Time to Breakeven | 218 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -36.8% | -6.8% |
| % Gain to Breakeven | 58.2% | 7.3% |
| Time to Breakeven | 219 days | 15 days |
In The Past
Arista Networks's stock fell -38.1% during the 2025 US Tariff Shock. Such a loss loss requires a 61.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Arista Networks (ANET)
Arista Networks (ANET) is a global technology company specializing in high-performance cloud networking solutions. The company designs, develops, and sells the critical hardware and software infrastructure that enables large-scale data centers and cloud environments to operate efficiently and reliably. Essentially, Arista provides the foundational networking technology required for rapid data traffic management and high-speed communication within complex digital ecosystems.
The core of Arista's offering comprises advanced gigabit Ethernet switching and routing platforms, which are fundamental components for building fast and scalable networks. These platforms are powered by the company's extensible operating systems and a collection of network applications, offering sophisticated control and programmability. Complementing its hardware and software, Arista also delivers comprehensive post-contract customer support services, including technical assistance, hardware repair and replacement, and software updates, ensuring the continued performance and stability of its clients' networks.
Arista Networks serves a broad international clientele across multiple sectors. Its primary customers include major internet companies, service providers, and financial institutions that require robust and high-capacity networking solutions for their critical operations. Additionally, the company provides its technology to government agencies, media and entertainment firms, and various other enterprises seeking advanced cloud networking infrastructure. Arista markets its products globally through a combination of distributors, system integrators, value-added resellers, OEM partners, and its direct sales team.
AI Analysis | Feedback
Like Cisco, but specializing in high-performance networking for cloud data centers.
AI Analysis | Feedback
- Extensible Operating Systems: Software that powers their cloud networking solutions.
- Network Applications: A suite of software applications designed for network management and functionality.
- Gigabit Ethernet Switching and Routing Platforms: Hardware devices providing high-speed network connectivity and traffic management capabilities.
- Post Contract Customer Support Services: Comprehensive support including technical assistance, hardware repair and parts replacement, and software updates and patches.
AI Analysis | Feedback
Arista Networks (ANET) primarily sells its cloud networking solutions to other companies.
Its major customers include:
- Microsoft (MSFT)
- Meta Platforms (META)
Beyond these specific major customers, Arista Networks serves a broad range of industries, including other internet companies, service providers, financial services organizations, government agencies, and media and entertainment companies.
AI Analysis | Feedback
- Celestica Inc. (CLS)
- Sanmina Corporation (SANM)
AI Analysis | Feedback
Jayshree Ullal, Chief Executive Officer and Chairperson
Jayshree Ullal has served as President and CEO of Arista Networks since October 2008 and became Chairperson in December 2023. She led the company to its initial public offering in June 2014. Prior to Arista, Ms. Ullal spent 15 years at Cisco Systems, where she was Senior Vice President, overseeing a $10 billion business in datacenter, switching, and services, and oversaw approximately 20 mergers and acquisitions in the enterprise sector. Before Cisco, she was the Vice President of Marketing at Crescendo Communications, which Cisco acquired in 1993. Her early career included engineering and strategy roles at Advanced Micro Devices (AMD), Fairchild Semiconductor, and Ungermann-Bass.
Chantelle Breithaupt, Chief Financial Officer
Chantelle Breithaupt was appointed Chief Financial Officer of Arista Networks, effective February 2024, succeeding Ita Brennan. She brings over 25 years of experience in global financial roles. Before joining Arista, Ms. Breithaupt served as Senior Vice President and CFO of Aspen Technology. Her career also includes executive finance positions at Cisco Systems and across four GE businesses.
Kenneth Duda, Co-Founder, President and Chief Technology Officer
Kenneth Duda co-founded Arista Networks in 2004 and has been its Chief Technology Officer and Senior Vice President of Software Engineering since September 2011, also holding the title of President. He is the lead architect of Arista Networks' Extensible Operating System (EOS). Prior to Arista Networks, Mr. Duda was CTO of There.com. He was also the fourth employee at Granite Systems, a leader in gigabit Ethernet switches, and continued his leadership role at Cisco Systems after its acquisition of Granite. Mr. Duda holds three simultaneous engineering degrees from MIT and a Ph.D. in Computer Science from Stanford University.
Todd Nightingale, President and Chief Operating Officer
Todd Nightingale joined Arista Networks as President and Chief Operating Officer, effective July 1, 2025, focusing on enterprise data centers, campus networks, and manufacturing. Before Arista, he served as CEO and a Board Member at Fastly, Inc. from September 2022 to June 2025. Mr. Nightingale also held leadership positions at Cisco Systems, Inc., including Executive Vice President and General Manager of Enterprise Networking and Cloud, and Senior Vice President and General Manager of Cisco Meraki. He holds a Bachelor of Science and a Master's in engineering from the Massachusetts Institute of Technology.
Andreas "Andy" Bechtolsheim, Co-Founder and Chief Architect
Andreas "Andy" Bechtolsheim co-founded Arista Networks in 2004 (originally Arastra). He currently serves as Chief Architect for Arista Networks, a role he transitioned to in December 2023, having previously been an executive officer and on the board. Mr. Bechtolsheim also co-founded Sun Microsystems in 1982, where he was its chief hardware designer. [cite: 3 (from previous search output)] He has been a founding member of the Open Compute Project (OCP) Board of Directors since 2011. [cite: 8 (from previous search output)] He holds an M.S. in Computer Engineering from Carnegie Mellon University and was a doctoral student at Stanford University. [cite: 8 (from previous search output)]
AI Analysis | Feedback
- Customer Concentration: A significant portion of Arista Networks' revenue is derived from a limited number of large cloud and AI customers. For instance, over 40% of its revenue comes from two customers, and Microsoft's contribution increased to 20% in fiscal year 2024. This heavy reliance makes the company vulnerable to any changes in these key customers' spending patterns, capital expenditure cuts, or strategic shifts, which could lead to substantial revenue fluctuations.
- Intense Competition: Arista operates in a highly competitive networking market. It faces strong competition from established players such as Cisco, Juniper Networks (now combined with HPE), Dell/EMC, Extreme Networks, and Huawei, as well as emerging threats like Nvidia in the AI networking space and white-box networking vendors. This intense competition can result in increased pricing pressure, reduced profit margins, and challenges in maintaining market share and its technological edge.
- Supply Chain Risks and Technological Disruption: The company faces risks related to its supply chain, particularly its reliance on sole or limited sources for key components, such as merchant silicon from vendors like Broadcom. Geopolitical risks can further constrain the availability of these key components, and the rapid pace of new interconnect technology could disrupt current standards, leading to potential supply shortages, extended lead times, increased costs, and the need for continuous innovation to stay ahead.
AI Analysis | Feedback
The increasing maturity and widespread adoption of disaggregated networking solutions, combining commodity "white box" hardware with sophisticated open-source network operating systems (such as SONiC), which offer lower costs and greater flexibility, potentially eroding the market for proprietary integrated networking solutions.
AI Analysis | Feedback
Arista Networks (ANET) operates within several significant addressable markets related to cloud networking, Ethernet switching, and routing platforms.
According to statements by Arista Networks' CEO in March 2026, the company's total addressable market (TAM) has grown from $60 billion to an estimated $105 billion, driven by demand in AI and cloud infrastructure, data center growth, and strategic expansions into campus and routing, as well as increased observability market opportunities.
Specific addressable markets for Arista Networks' products and services include:
- Data Center Networking: The global data center networking market was estimated at USD 38.49 billion in 2024 and is projected to reach USD 154.83 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 17.2% from 2025 to 2033. Another projection places the global data center networking market size at USD 44.37 billion in 2026, growing to USD 114.08 billion by 2034 with a CAGR of 12.53%. BNP Paribas projects the total addressable data center networking market to reach $120 billion by 2028.
- Ethernet Switching: The global Ethernet switch market was valued at USD 43.84 billion in 2025 and is projected to grow to USD 76.4 billion by 2034, with a CAGR of 6.48%. Separately, the worldwide Ethernet switch market recorded USD 14.7 billion in revenue in the third quarter of 2025 alone. Another estimate values the global Ethernet switch market at USD 12.66 billion in 2024, expecting it to reach USD 19.92 billion by 2032, growing at a CAGR of 5.89% from 2025 to 2032.
- Data Center Routing: The global data center router market was valued at USD 3.08 billion in 2024 and is projected to reach USD 14.23 billion by 2034, growing at a CAGR of 16.54% during the forecast period of 2025–2034. Another report estimates the global data center router market at USD 10.25 billion in 2025, anticipated to reach USD 13.44 billion by 2032, with a CAGR of 4.0% from 2026 to 2032.
- Cloud Managed Networking / Multi-Cloud Networking: The global multi-cloud networking market size was estimated at USD 2.03 billion in 2024 and is projected to reach USD 13.14 billion by 2033, growing at a CAGR of 23.7% from 2025 to 2033. The global multi-cloud networking market was valued at USD 2.8 billion in 2023 and is estimated to reach USD 18.7 billion by 2032, registering a CAGR of over 23.5% between 2024 and 2032.
AI Analysis | Feedback
Arista Networks (ANET) is positioned for robust revenue growth over the next two to three years, driven by several key factors:
- Explosive Growth in AI Networking: Arista Networks is a primary beneficiary of the substantial investments being made in artificial intelligence (AI) infrastructure. The company has significantly raised its AI networking revenue targets for 2026 to $3.25 billion, reflecting accelerating customer adoption in both traditional and emerging cloud sectors. This growth is propelled by its Etherlink portfolio and strategic collaborations with AI leaders such as NVIDIA, Arm, AMD, and OpenAI, as well as the industry's shift from InfiniBand to Ethernet for AI clusters.
- Continued and Expanding Hyperscale Cloud Provider Business: Arista maintains strong, deep-seated relationships with major hyperscale cloud providers, including Microsoft and Meta, which represent a significant portion of its revenue. These "cloud titans" are undertaking large capital outlays for compute and data center build-outs, directly benefiting Arista. Furthermore, the company anticipates adding one or two additional 10% customers in 2026, indicating ongoing diversification and expansion within this critical segment.
- Accelerated Transition to Next-Generation Ethernet Switching Platforms: The rapid upgrade cycle for Ethernet switching technology, particularly the transition to 800 Gigabit Ethernet and the imminent 1.6 terabit migration, is a substantial revenue driver. The cadence for these upgrades has reportedly shortened from 3-5 years to approximately two years, leading to accelerated adoption and significant growth in demand for Arista's advanced 7000 Series platforms.
- Expansion into the Enterprise Market and Cognitive Campus: Beyond its core cloud business, Arista is experiencing an accelerating pace of acceptance and adoption within the enterprise customer base. The expansion of its cognitive campus and branch networking portfolio is positioning the company for diversified customer growth and broader market penetration.
- Increasing Contribution from Software and Services: Arista's software offerings, such as its CloudVision network-as-a-service platform and the Network Data Lake (NetDL) for AI/ML-driven automation and security, are gaining significant traction. These services are adding new customers and steadily contributing to the company's overall revenue, enhancing its comprehensive solution portfolio.
AI Analysis | Feedback
Share Repurchases
- Arista's Board of Directors authorized an additional $1.5 billion stock repurchase program in May 2025.
- An additional $1.2 billion stock repurchase program was authorized by the Board in May 2024.
- In the first quarter of 2025, Arista completed $787 million in stock repurchases, which was the highest quarterly or annual amount in the company's history. Annual share buybacks were $1.603 billion in 2025, $423.619 million in 2024, and $112.279 million in 2023.
Share Issuance
- Arista Networks' shares outstanding saw a 0.42% decline in 2025 to 1.276 billion, following a 0.99% increase in 2024 to 1.281 billion and a 0.21% increase in 2023 to 1.269 billion.
- The net common equity issued/repurchased for 2025 was -$3.000 billion, indicating a net repurchase of shares.
Inbound Investments
- Arete Wealth Advisors LLC made a new investment of approximately $4.93 million in Arista Networks during the third quarter (as of a March 2026 report).
Outbound Investments
- In July 2025, Arista acquired the VeloCloud SD-WAN portfolio from Broadcom to accelerate its AI-driven campus and branch networking strategy.
- Arista Networks acquired Pluribus Networks, a unified cloud network company, in August 2022.
Capital Expenditures
- Arista Networks' capital expenditures averaged $34.643 million from fiscal years ending December 2020 to 2024.
- Capital expenditures are projected to increase significantly from $32 million in FY2024 to an estimated $120 million in FY2025.
- The primary focus of the increased capital expenditures for FY2025 includes investments in a 1.6T product development lab, VeloCloud integration, and internal AI/ML training facilities.
Latest Trefis Analyses
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 144.69 |
| Mkt Cap | 142.9 |
| Rev LTM | 24,252 |
| Op Inc LTM | 3,202 |
| FCF LTM | 4,634 |
| FCF 3Y Avg | 3,043 |
| CFO LTM | 5,891 |
| CFO 3Y Avg | 4,275 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 26.6% |
| Rev Chg 3Y Avg | 11.1% |
| Rev Chg Q | 37.3% |
| QoQ Delta Rev Chg LTM | 8.2% |
| Op Inc Chg LTM | 47.6% |
| Op Inc Chg 3Y Avg | 31.5% |
| Op Mgn LTM | 9.6% |
| Op Mgn 3Y Avg | 7.4% |
| QoQ Delta Op Mgn LTM | 0.7% |
| CFO/Rev LTM | 17.5% |
| CFO/Rev 3Y Avg | 14.2% |
| FCF/Rev LTM | 12.6% |
| FCF/Rev 3Y Avg | 9.2% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 142.9 |
| P/S | 5.2 |
| P/Op Inc | 42.2 |
| P/EBIT | 41.1 |
| P/E | 50.3 |
| P/CFO | 32.0 |
| Total Yield | 2.6% |
| Dividend Yield | 0.3% |
| FCF Yield 3Y Avg | 4.0% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -4.0% |
| 3M Rtn | 49.4% |
| 6M Rtn | 86.4% |
| 12M Rtn | 101.0% |
| 3Y Rtn | 254.0% |
| 1M Excs Rtn | - |
| 3M Excs Rtn | - |
| 6M Excs Rtn | - |
| 12M Excs Rtn | - |
| 3Y Excs Rtn | - |
Comparison Analyses
Price Behavior
| Market Price | $176.61 | |
| Market Cap ($ Bil) | 222.1 | |
| First Trading Date | 06/06/2014 | |
| Distance from 52W High | -6.5% | |
| 50 Days | 200 Days | |
| DMA Price | $161.65 | $144.89 |
| DMA Trend | up | up |
| Distance from DMA | 9.3% | 21.9% |
| 3M | 1YR | |
| Volatility | 62.7% | 55.2% |
| Downside Capture | 225.19 | 219.50 |
| Upside Capture | 177.31 | 227.81 |
| Correlation (SPY) | 38.3% | 47.7% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.52 | 1.64 | 1.86 | 2.07 | 2.05 | 1.80 |
| Up Beta | 0.92 | -1.12 | 0.94 | 1.23 | 1.44 | 1.27 |
| Down Beta | 2.67 | 2.68 | 2.81 | 2.14 | 2.12 | 2.15 |
| Up Capture | 394% | 179% | 260% | 344% | 448% | 1816% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 11 | 19 | 36 | 63 | 139 | 422 |
| Down Capture | 225% | 216% | 186% | 185% | 158% | 111% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 10 | 22 | 27 | 62 | 112 | 328 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ANET | |
|---|---|---|---|---|
| ANET | 59.6% | 55.2% | 1.05 | - |
| Sector ETF (XLK) | 40.1% | 24.7% | 1.32 | 57.6% |
| Equity (SPY) | 19.9% | 12.6% | 1.17 | 47.6% |
| Gold (GLD) | 20.0% | 28.1% | 0.64 | 15.2% |
| Commodities (DBC) | 33.2% | 19.1% | 1.38 | 7.8% |
| Real Estate (VNQ) | 12.0% | 13.9% | 0.58 | -9.3% |
| Bitcoin (BTCUSD) | -45.1% | 42.9% | -1.28 | 29.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ANET | |
|---|---|---|---|---|
| ANET | 50.0% | 48.0% | 1.01 | - |
| Sector ETF (XLK) | 19.8% | 25.6% | 0.69 | 65.5% |
| Equity (SPY) | 12.9% | 17.1% | 0.58 | 56.7% |
| Gold (GLD) | 17.3% | 18.4% | 0.76 | 8.9% |
| Commodities (DBC) | 9.4% | 19.5% | 0.37 | 13.6% |
| Real Estate (VNQ) | 2.6% | 18.9% | 0.04 | 23.1% |
| Bitcoin (BTCUSD) | 15.8% | 53.4% | 0.47 | 24.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ANET | |
|---|---|---|---|---|
| ANET | 44.5% | 45.1% | 0.98 | - |
| Sector ETF (XLK) | 24.5% | 24.8% | 0.89 | 61.3% |
| Equity (SPY) | 15.1% | 17.9% | 0.72 | 54.6% |
| Gold (GLD) | 11.4% | 16.1% | 0.58 | 6.0% |
| Commodities (DBC) | 7.2% | 17.9% | 0.32 | 14.9% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 28.7% |
| Bitcoin (BTCUSD) | 58.7% | 66.2% | 0.99 | 13.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/7/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/5/2026 | -13.6% | -16.3% | -2.5% |
| 2/12/2026 | 4.8% | -1.7% | 0.2% |
| 11/4/2025 | -8.6% | -12.1% | -16.3% |
| 8/5/2025 | 17.5% | 19.6% | 19.5% |
| 5/6/2025 | -4.8% | 7.1% | 4.9% |
| 2/18/2025 | -6.4% | -16.4% | -24.0% |
| 11/7/2024 | -7.1% | -10.5% | -1.7% |
| 7/30/2024 | 11.3% | 3.9% | 9.5% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 14 | 11 | 15 |
| # Negative | 10 | 13 | 9 |
| Median Positive | 6.1% | 14.5% | 12.5% |
| Median Negative | -6.8% | -10.5% | -7.7% |
| Max Positive | 20.4% | 28.8% | 25.7% |
| Max Negative | -15.7% | -16.7% | -24.0% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/5/2026 | -13.6% | -16.3% | -2.5% |
| 2/12/2026 | 4.8% | -1.7% | 0.2% |
| 11/4/2025 | -8.6% | -12.1% | -16.3% |
| 8/5/2025 | 17.5% | 19.6% | 19.5% |
| 5/6/2025 | -4.8% | 7.1% | 4.9% |
| 2/18/2025 | -6.4% | -16.4% | -24.0% |
| 11/7/2024 | -7.1% | -10.5% | -1.7% |
| 7/30/2024 | 11.3% | 3.9% | 9.5% |
| 5/7/2024 | 6.5% | 14.5% | 8.2% |
| 2/12/2024 | -5.5% | -7.6% | -0.1% |
| 10/30/2023 | 14.0% | 21.1% | 24.8% |
| 7/31/2023 | 19.7% | 15.6% | 19.6% |
| 5/1/2023 | -15.7% | -13.8% | 3.9% |
| 2/13/2023 | 4.0% | -1.1% | 13.1% |
| 10/31/2022 | 5.7% | 8.0% | 15.3% |
| 8/1/2022 | -0.4% | 6.0% | 3.0% |
| 5/2/2022 | -3.6% | -13.3% | -14.0% |
| 2/14/2022 | 5.8% | -0.8% | 1.1% |
| 11/1/2021 | 20.4% | 28.8% | 18.8% |
| 8/2/2021 | 0.5% | -0.4% | -2.0% |
| 5/4/2021 | 3.7% | 6.9% | 12.5% |
| 2/18/2021 | 0.7% | -9.3% | -7.7% |
| 11/2/2020 | 15.4% | 21.1% | 25.7% |
| 8/4/2020 | -10.9% | -16.7% | -13.4% |
| SUMMARY STATS | |||
| # Positive | 14 | 11 | 15 |
| # Negative | 10 | 13 | 9 |
| Median Positive | 6.1% | 14.5% | 12.5% |
| Median Negative | -6.8% | -10.5% | -7.7% |
| Max Positive | 20.4% | 28.8% | 25.7% |
| Max Negative | -15.7% | -16.7% | -24.0% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/06/2026 | 10-Q |
| 12/31/2025 | 02/17/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/07/2025 | 10-Q |
| 12/31/2024 | 02/19/2025 | 10-K |
| 09/30/2024 | 11/08/2024 | 10-Q |
| 06/30/2024 | 07/31/2024 | 10-Q |
| 03/31/2024 | 05/08/2024 | 10-Q |
| 12/31/2023 | 02/13/2024 | 10-K |
| 09/30/2023 | 10/31/2023 | 10-Q |
| 06/30/2023 | 08/01/2023 | 10-Q |
| 03/31/2023 | 05/02/2023 | 10-Q |
| 12/31/2022 | 02/14/2023 | 10-K |
| 09/30/2022 | 11/01/2022 | 10-Q |
| 06/30/2022 | 08/02/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/06/2026 | 10-Q |
| 12/31/2025 | 02/17/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/07/2025 | 10-Q |
| 12/31/2024 | 02/19/2025 | 10-K |
| 09/30/2024 | 11/08/2024 | 10-Q |
| 06/30/2024 | 07/31/2024 | 10-Q |
| 03/31/2024 | 05/08/2024 | 10-Q |
| 12/31/2023 | 02/13/2024 | 10-K |
| 09/30/2023 | 10/31/2023 | 10-Q |
| 06/30/2023 | 08/01/2023 | 10-Q |
| 03/31/2023 | 05/02/2023 | 10-Q |
| 12/31/2022 | 02/14/2023 | 10-K |
| 09/30/2022 | 11/01/2022 | 10-Q |
| 06/30/2022 | 08/02/2022 | 10-Q |
| 03/31/2022 | 05/03/2022 | 10-Q |
| 12/31/2021 | 02/15/2022 | 10-K |
| 09/30/2021 | 11/02/2021 | 10-Q |
| 06/30/2021 | 08/03/2021 | 10-Q |
| 03/31/2021 | 05/06/2021 | 10-Q |
| 12/31/2020 | 02/19/2021 | 10-K |
| 09/30/2020 | 11/03/2020 | 10-Q |
| 06/30/2020 | 08/05/2020 | 10-Q |
| 03/31/2020 | 05/06/2020 | 10-Q |
| 12/31/2019 | 02/14/2020 | 10-K |
| 09/30/2019 | 11/01/2019 | 10-Q |
| 06/30/2019 | 08/02/2019 | 10-Q |
Recent Forward Guidance
Updated 7/8/2026Latest: Q1 2026 Earnings Reported 5/5/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 2.80 Bil | 7.7% | Higher New | Actual: 2.60 Bil for Q1 2026 | |||
| Q2 2026 Non-GAAP Operating Margin | 46.0% | 46.5% | 47.0% | 0.5% | Higher New | Actual: 46.0% for Q1 2026 | |
| Q2 2026 Non-GAAP Diluted Net Income Per Share | 0.88 | ||||||
Prior: Q4 2025 Earnings Reported 2/12/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 2.60 Bil | 10.6% | Higher New | Guidance: 2.35 Bil for Q4 2025 | |||
| Q1 2026 Non-GAAP Gross Margin | 62.0% | 62.5% | 63.0% | 0 | Same New | Guidance: 62.5% for Q4 2025 | |
| Q1 2026 Non-GAAP Operating Margin | 46.0% | -1.5% | Lower New | Guidance: 47.5% for Q4 2025 | |||
Q3 2025 Earnings Reported 11/4/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2025 Revenue | 2.30 Bil | 2.35 Bil | 2.40 Bil | 4.4% | Higher New | Guidance: 2.25 Bil for Q3 2025 | |
| Q4 2025 Non-GAAP Gross Margin | 62.0% | 62.5% | 63.0% | -1.5% | Lower New | Guidance: 64.0% for Q3 2025 | |
| Q4 2025 Non-GAAP Operating Margin | 47.0% | 47.5% | 48.0% | 0.5% | Higher New | Guidance: 47.0% for Q3 2025 | |
Insider Activity
Updated 7/22/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Duda, Kenneth | President and CTO | Direct | Sell | 7222026 | 170.51 | 17,333 | 2,955,515 | 2,212,587 | Form |
| 2 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 7222026 | 170.51 | 16,000 | 2,728,220 | 175,828,316 | Form |
| 3 | Duda, Kenneth | President and CTO | Foundation | Sell | 7222026 | 170.51 | 10,000 | 1,705,137 | 78,845,519 | Form |
| 4 | Bechtolsheim, Andreas | by Trust | Sell | 7162026 | 180.77 | 300,000 | 54,231,399 | 32,853,932,474 | Form | |
| 5 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 7142026 | 187.18 | 36,888 | 6,904,534 | 960,998,276 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Duda, Kenneth | President and CTO | Direct | Sell | 7222026 | 170.51 | 17,333 | 2,955,515 | 2,212,587 | Form |
| 2 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 7222026 | 170.51 | 16,000 | 2,728,220 | 175,828,316 | Form |
| 3 | Duda, Kenneth | President and CTO | Foundation | Sell | 7222026 | 170.51 | 10,000 | 1,705,137 | 78,845,519 | Form |
| 4 | Bechtolsheim, Andreas | by Trust | Sell | 7162026 | 180.77 | 300,000 | 54,231,399 | 32,853,932,474 | Form | |
| 5 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 7142026 | 187.18 | 36,888 | 6,904,534 | 960,998,276 | Form |
| 6 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 7142026 | 187.18 | 36,888 | 6,904,534 | 960,998,276 | Form |
| 7 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 7142026 | 187.18 | 160,802 | 30,098,211 | 3,210,999,290 | Form |
| 8 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 7132026 | 188.17 | 38,112 | 7,171,484 | 973,037,980 | Form |
| 9 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 7132026 | 188.17 | 38,112 | 7,171,484 | 973,037,980 | Form |
| 10 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 7132026 | 188.17 | 166,198 | 31,273,253 | 3,258,292,898 | Form |
| 11 | Bechtolsheim, Andreas | by Trust | Sell | 7072026 | 162.67 | 240,000 | 39,040,876 | 29,612,999,969 | Form | |
| 12 | Bechtolsheim, Andreas | by Trust | Sell | 7062026 | 164.22 | 260,000 | 42,696,873 | 29,934,293,155 | Form | |
| 13 | Giancarlo, Charles H | by Trust | Sell | 7062026 | 167.06 | 8,000 | 1,336,474 | 32,131,003 | Form | |
| 14 | Duda, Kenneth | President and CTO | Direct | Sell | 6242026 | 171.42 | 17,333 | 2,971,253 | 2,224,368 | Form |
| 15 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 6242026 | 171.42 | 16,000 | 2,742,760 | 179,508,127 | Form |
| 16 | Duda, Kenneth | President and CTO | Foundation | Sell | 6242026 | 171.42 | 10,000 | 1,714,221 | 80,979,807 | Form |
| 17 | Bechtolsheim, Andreas | by Trust | Sell | 6172026 | 165.57 | 260,000 | 43,049,018 | 30,224,226,743 | Form | |
| 18 | Bechtolsheim, Andreas | Direct | Sell | 6092026 | 157.93 | 220,000 | 34,743,812 | 17,663,754 | Form | |
| 19 | Bechtolsheim, Andreas | Direct | Sell | 6082026 | 163.06 | 240,000 | 39,135,436 | 54,112,567 | Form | |
| 20 | Giancarlo, Charles H | by Trust | Sell | 6032026 | 169.09 | 8,000 | 1,352,728 | 33,874,499 | Form | |
| 21 | Ullal, Jayshree | CEO and Chairperson | Direct | Sell | 5282026 | 155.04 | 13,809 | 2,141,004 | 1,537,572 | Form |
| 22 | Breithaupt, Chantelle Yvette | Senior Vice President, CFO | Direct | Sell | 5282026 | 157.00 | 2,448 | 384,336 | 10,112,056 | Form |
| 23 | Bechtolsheim, Andreas | by Trust | Sell | 5282026 | 156.86 | 220,000 | 34,508,850 | 28,674,195,150 | Form | |
| 24 | Battles, Kelly Bodnar | Direct | Sell | 5262026 | 146.44 | 422 | 61,797 | 1,475,808 | Form | |
| 25 | Wassenaar, Yvonne | Direct | Sell | 5222026 | 140.93 | 971 | 136,846 | 1,378,893 | Form | |
| 26 | Duda, Kenneth | President and CTO | Direct | Sell | 5202026 | 140.08 | 32,000 | 4,482,711 | 1,817,739 | Form |
| 27 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 5202026 | 140.08 | 16,000 | 2,241,356 | 148,933,611 | Form |
| 28 | Duda, Kenneth | President and CTO | Foundation | Sell | 5202026 | 140.08 | 10,000 | 1,400,847 | 67,576,846 | Form |
| 29 | Giancarlo, Charles H | by Trust | Sell | 5052026 | 175.40 | 8,000 | 1,403,202 | 36,541,650 | Form | |
| 30 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 4242026 | 177.44 | 64,000 | 11,356,159 | 924,321,593 | Form |
| 31 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 4242026 | 177.44 | 64,000 | 11,356,159 | 924,321,593 | Form |
| 32 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 4242026 | 177.44 | 300,000 | 53,231,996 | 3,102,007,646 | Form |
| 33 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 4222026 | 167.31 | 45,920 | 7,682,967 | 884,626,563 | Form |
| 34 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 4222026 | 167.31 | 45,920 | 7,682,967 | 884,626,563 | Form |
| 35 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 4222026 | 167.31 | 214,299 | 35,854,794 | 2,986,136,223 | Form |
| 36 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 4202026 | 159.32 | 50,000 | 7,965,805 | 849,665,733 | Form |
| 37 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 4202026 | 159.32 | 50,000 | 7,965,805 | 849,665,733 | Form |
| 38 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 4202026 | 159.32 | 250,000 | 39,829,021 | 2,877,568,675 | Form |
| 39 | Wassenaar, Yvonne | Direct | Sell | 4172026 | 153.07 | 1,395 | 213,533 | 1,497,636 | Form | |
| 40 | Ullal, Jayshree | CEO and Chairperson | Direct | Sell | 4152026 | 150.11 | 112,812 | 16,934,672 | 1,488,682 | Form |
| 41 | Giancarlo, Charles H | by Trust | Sell | 4032026 | 125.95 | 8,000 | 1,007,603 | 27,247,234 | Form | |
| 42 | Wassenaar, Yvonne | Direct | Sell | 3182026 | 134.34 | 1,395 | 187,404 | 1,501,788 | Form | |
| 43 | Giancarlo, Charles H | by Trust | Sell | 3042026 | 128.67 | 8,000 | 1,029,372 | 229,550 | Form | |
| 44 | Wassenaar, Yvonne | Direct | Sell | 2272026 | 132.44 | 1,815 | 240,380 | 1,665,314 | Form | |
| 45 | Battles, Kelly Bodnar | Direct | Sell | 2252026 | 128.06 | 422 | 54,042 | 1,220,307 | Form | |
| 46 | Duda, Kenneth | President and CTO | Direct | Sell | 2192026 | 142.44 | 32,000 | 4,557,938 | 1,848,244 | Form |
| 47 | Duda, Kenneth | President and CTO | Foundation | Sell | 2192026 | 142.44 | 10,000 | 1,424,355 | 72,983,960 | Form |
| 48 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 2192026 | 142.29 | 16,000 | 2,276,709 | 158,112,858 | Form |
| 49 | Giancarlo, Charles H | by Trust | Sell | 2042026 | 140.43 | 8,000 | 1,123,469 | 1,374,002 | Form | |
| 50 | Duda, Kenneth | President and CTO | Direct | Sell | 1222026 | 128.43 | 30,000 | 3,852,972 | 1,666,539 | Form |
| 51 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 1222026 | 128.43 | 16,000 | 2,054,918 | 144,764,864 | Form |
| 52 | Duda, Kenneth | President and CTO | Foundation | Sell | 1222026 | 128.43 | 10,000 | 1,284,322 | 67,093,005 | Form |
| 53 | Giancarlo, Charles H | by Trust | Sell | 1062026 | 133.79 | 8,000 | 1,070,291 | 2,379,258 | Form | |
| 54 | Duda, Kenneth | President and CTO | Direct | Sell | 12192025 | 123.16 | 30,000 | 3,694,672 | 1,598,069 | Form |
| 55 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 12192025 | 123.16 | 16,000 | 1,970,493 | 140,787,769 | Form |
| 56 | Duda, Kenneth | President and CTO | Foundation | Sell | 12192025 | 123.16 | 10,000 | 1,231,557 | 65,568,094 | Form |
| 57 | Giancarlo, Charles H | by Trust | Sell | 12032025 | 128.09 | 8,000 | 1,024,749 | 3,302,765 | Form | |
| 58 | Ullal, Jayshree | CEO and Chairperson | Direct | Sell | 11262025 | 124.55 | 24,042 | 2,994,534 | 1,235,205 | Form |
| 59 | Battles, Kelly Bodnar | Direct | Sell | 11252025 | 117.15 | 422 | 49,436 | 1,051,982 | Form | |
| 60 | Duda, Kenneth | President and CTO | Direct | Sell | 11192025 | 128.61 | 30,000 | 3,858,423 | 1,668,897 | Form |
| 61 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 11192025 | 128.61 | 16,000 | 2,057,828 | 149,085,508 | Form |
| 62 | Duda, Kenneth | President and CTO | Foundation | Sell | 11192025 | 128.61 | 10,000 | 1,286,140 | 69,760,231 | Form |
| 63 | Giancarlo, Charles H | by Trust | Sell | 11052025 | 157.12 | 8,000 | 1,256,957 | 5,308,129 | Form | |
| 64 | Duda, Kenneth | President and CTO | Direct | Sell | 10212025 | 142.75 | 30,000 | 4,282,401 | 1,852,281 | Form |
| 65 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 10212025 | 142.75 | 16,000 | 2,283,946 | 167,751,241 | Form |
| 66 | Duda, Kenneth | President and CTO | Foundation | Sell | 10212025 | 142.75 | 10,000 | 1,427,467 | 78,853,279 | Form |
| 67 | Giancarlo, Charles H | by Trust | Sell | 10032025 | 147.49 | 8,000 | 1,179,890 | 6,162,566 | Form | |
| 68 | Giancarlo, Charles H | Charitable Trust | Sell | 9232025 | 148.42 | 50,000 | Form | |||
| 69 | Giancarlo, Charles H | by Trust | Sell | 9232025 | 148.42 | 8,000 | 1,187,361 | 7,388,948 | Form | |
| 70 | Duda, Kenneth | President and CTO | Direct | Sell | 9192025 | 141.79 | 30,000 | 4,253,849 | 1,839,932 | Form |
| 71 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 9192025 | 141.80 | 16,000 | 2,268,723 | 168,901,917 | Form |
| 72 | Duda, Kenneth | President and CTO | Foundation | Sell | 9192025 | 141.80 | 10,000 | 1,417,951 | 79,745,586 | Form |
| 73 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 9122025 | 148.53 | 172,166 | 25,572,363 | 799,584,828 | Form |
| 74 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 9122025 | 148.53 | 172,166 | 25,572,363 | 799,584,828 | Form |
| 75 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 9122025 | 148.53 | 903,356 | 134,178,336 | 2,858,819,523 | Form |
| 76 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 9102025 | 143.56 | 7,803 | 1,120,180 | 797,516,067 | Form |
| 77 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 9102025 | 143.56 | 7,803 | 1,120,180 | 797,516,067 | Form |
| 78 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 9102025 | 143.56 | 40,942 | 5,877,535 | 2,892,737,939 | Form |
| 79 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 9092025 | 143.84 | 60,545 | 8,709,035 | 800,229,518 | Form |
| 80 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 9092025 | 143.84 | 60,545 | 8,709,035 | 800,229,518 | Form |
| 81 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 9092025 | 143.84 | 317,674 | 45,695,495 | 2,904,398,285 | Form |
| 82 | Ullal, Jayshree | CEO and Chairperson | Direct | Sell | 8272025 | 132.77 | 24,040 | 3,191,740 | 1,316,659 | Form |
| 83 | Duda, Kenneth | CTO and SVP Software Eng. | Direct | Sell | 8202025 | 136.51 | 30,000 | 4,095,196 | 1,771,309 | Form |
| 84 | Duda, Kenneth | CTO and SVP Software Eng. | Childrens' Trust | Sell | 8202025 | 136.51 | 16,000 | 2,184,105 | 164,786,322 | Form |
| 85 | Duda, Kenneth | CTO and SVP Software Eng. | Foundation | Sell | 8202025 | 136.51 | 10,000 | 1,365,066 | 78,136,362 | Form |
| 86 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 8122025 | 139.67 | 26,625 | 3,718,732 | 785,469,049 | Form |
| 87 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 8122025 | 139.67 | 26,625 | 3,718,732 | 785,469,049 | Form |
| 88 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 8122025 | 139.67 | 139,729 | 19,516,047 | 2,864,503,872 | Form |
| 89 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 8112025 | 139.93 | 47,728 | 6,678,617 | 790,657,353 | Form |
| 90 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 8112025 | 139.93 | 47,728 | 6,678,617 | 790,657,353 | Form |
| 91 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 8112025 | 139.93 | 250,400 | 35,038,669 | 2,889,390,384 | Form |
| 92 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 8082025 | 136.22 | 246,331 | 33,555,360 | 776,195,139 | Form |
| 93 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 8082025 | 136.22 | 246,331 | 33,555,360 | 776,195,139 | Form |
| 94 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 8082025 | 136.22 | 1,292,503 | 176,065,561 | 2,846,889,875 | Form |
| 95 | Giancarlo, Charles H | by Trust | Sell | 8052025 | 117.01 | 8,000 | 936,044 | 6,761,043 | Form | |
| 96 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 8042025 | 124.79 | 121,454 | 15,156,785 | 741,828,722 | Form |
| 97 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 8042025 | 124.79 | 121,454 | 15,156,785 | 741,828,722 | Form |
| 98 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 8042025 | 124.79 | 637,272 | 79,528,002 | 2,769,390,019 | Form |
| 99 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 8012025 | 122.19 | 39,854 | 4,869,695 | 741,177,304 | Form |
| 100 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 8012025 | 122.19 | 39,854 | 4,869,695 | 741,177,304 | Form |
| 101 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 8012025 | 122.19 | 209,112 | 25,551,049 | 2,789,423,770 | Form |
| 102 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 7312025 | 119.15 | 81,137 | 9,667,702 | 727,512,901 | Form |
| 103 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 7312025 | 119.15 | 81,137 | 9,667,702 | 727,512,901 | Form |
| 104 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 7312025 | 119.15 | 425,726 | 50,726,453 | 2,745,042,431 | Form |
| 105 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 7302025 | 115.59 | 72,761 | 8,410,248 | 715,121,318 | Form |
| 106 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 7302025 | 115.59 | 72,761 | 8,410,248 | 715,121,318 | Form |
| 107 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 7302025 | 115.59 | 381,780 | 44,128,923 | 2,712,108,714 | Form |
| 108 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 7292025 | 115.02 | 8,376 | 963,415 | 719,986,091 | Form |
| 109 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 7292025 | 115.02 | 8,376 | 963,415 | 719,986,091 | Form |
| 110 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 7292025 | 115.02 | 43,946 | 5,054,708 | 2,742,731,331 | Form |
| 111 | Battles, Kelly Bodnar | Direct | Sell | 7292025 | 114.68 | 864 | 99,081 | 855,494 | Form | |
| 112 | Duda, Kenneth | CTO and SVP Software Eng. | Direct | Sell | 7212025 | 111.19 | 30,000 | 3,335,759 | 1,442,827 | Form |
| 113 | Duda, Kenneth | CTO and SVP Software Eng. | Childrens' Trust | Sell | 7212025 | 111.19 | 16,000 | 1,779,070 | 136,006,342 | Form |
| 114 | Duda, Kenneth | CTO and SVP Software Eng. | Foundation | Sell | 7212025 | 111.19 | 10,000 | 1,111,920 | 64,758,213 | Form |
| 115 | Giancarlo, Charles H | by Trust | Sell | 7032025 | 99.36 | 8,000 | 794,906 | 6,536,509 | Form | |
| 116 | Ullal, Jayshree | President and CEO | Direct | Sell | 7022025 | 102.43 | 93,468 | 9,573,859 | 1,015,791 | Form |
| 117 | Ullal, Jayshree | President and CEO | Trust for Child 1 | Sell | 7022025 | 102.43 | 100,862 | 10,331,221 | 642,025,341 | Form |
| 118 | Ullal, Jayshree | President and CEO | Trust for Child 2 | Sell | 7022025 | 102.43 | 100,862 | 10,331,221 | 642,025,341 | Form |
| 119 | Ullal, Jayshree | President and CEO | Trust for Nephew | Sell | 7022025 | 102.43 | 8,756 | 896,870 | 3,072,877 | Form |
| 120 | Ullal, Jayshree | President and CEO | Trust for Niece | Sell | 7022025 | 102.43 | 8,756 | 896,870 | 3,072,877 | Form |
| 121 | Ullal, Jayshree | President and CEO | by Trust | Sell | 7022025 | 102.43 | 529,208 | 54,206,389 | 2,446,978,928 | Form |
| 122 | Ullal, Jayshree | President and CEO | Direct | Sell | 7012025 | 101.99 | 223 | 22,744 | 10,544,453 | Form |
| 123 | Ullal, Jayshree | President and CEO | Trust for Child 1 | Sell | 7012025 | 101.99 | 241 | 24,580 | 649,572,284 | Form |
| 124 | Ullal, Jayshree | President and CEO | Trust for Child 2 | Sell | 7012025 | 101.99 | 241 | 24,580 | 649,572,284 | Form |
| 125 | Ullal, Jayshree | President and CEO | Trust for Nephew | Sell | 7012025 | 101.99 | 20 | 2,040 | 3,952,806 | Form |
| 126 | Ullal, Jayshree | President and CEO | Trust for Niece | Sell | 7012025 | 101.99 | 20 | 2,040 | 3,952,806 | Form |
| 127 | Ullal, Jayshree | President and CEO | by Trust | Sell | 7012025 | 101.99 | 1,271 | 129,632 | 2,490,510,209 | Form |
| 128 | Ullal, Jayshree | President and CEO | Direct | Sell | 6302025 | 102.03 | 13,075 | 1,334,074 | 10,571,373 | Form |
| 129 | Ullal, Jayshree | President and CEO | Trust for Child 1 | Sell | 6302025 | 102.03 | 14,110 | 1,439,677 | 649,853,539 | Form |
| 130 | Ullal, Jayshree | President and CEO | Trust for Child 2 | Sell | 6302025 | 102.03 | 14,110 | 1,439,677 | 649,853,539 | Form |
| 131 | Ullal, Jayshree | President and CEO | Trust for Nephew | Sell | 6302025 | 102.03 | 1,224 | 124,888 | 3,956,408 | Form |
| 132 | Ullal, Jayshree | President and CEO | Trust for Niece | Sell | 6302025 | 102.03 | 1,224 | 124,888 | 3,956,408 | Form |
| 133 | Ullal, Jayshree | President and CEO | by Trust | Sell | 6302025 | 102.03 | 74,039 | 7,554,377 | 2,491,623,964 | Form |
Investor Activity (13F)
Updated Jul 24, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Varenne Capital Partners | $51.7 Mil | 12.8% | 27 | Hold | 13F |
| Cresset Asset Management, LLC | $2.5 Bil | 11.0% | 1582 | Hold | 13F |
| Capital Counsel Llc/Ny | $242.7 Mil | 10.3% | 62 | Hold | 13F |
| DSM Capital Partners LLC | $329.9 Mil | 5.8% | 44 | Hold | 13F |
| Anomaly Capital Management, LP | $70.6 Mil | 4.3% | 21 | New | 13F |
| Timucuan Asset Management Inc/Fl | $112.7 Mil | 4.1% | 28 | Hold | 13F |
| Nepsis Inc. | $9.7 Mil | 3.2% | 29 | Hold | 13F |
| Cambridge Financial Group, Inc. | $7.3 Mil | 2.7% | 33 | Hold | 13F |
| Ithaka Group LLC | $12.8 Mil | 2.6% | 38 | Hold | 13F |
| M & L Capital Management Ltd | $10.6 Mil | 2.6% | 19 | Hold | 13F |
| Eleva Capital SAS | $5.8 Mil | 1.7% | 24 | New | 13F |
| First Washington CORP | $5.3 Mil | 1.5% | 50 | Hold | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Cresset Asset Management, LLC | $2.5 Bil | 11.0% | 1582 | Hold | 13F |
| DSM Capital Partners LLC | $329.9 Mil | 5.8% | 44 | Hold | 13F |
| Capital Counsel Llc/Ny | $242.7 Mil | 10.3% | 62 | Hold | 13F |
| Timucuan Asset Management Inc/Fl | $112.7 Mil | 4.1% | 28 | Hold | 13F |
| Anomaly Capital Management, LP | $70.6 Mil | 4.3% | 21 | New | 13F |
| Varenne Capital Partners | $51.7 Mil | 12.8% | 27 | Hold | 13F |
| Ithaka Group LLC | $12.8 Mil | 2.6% | 38 | Hold | 13F |
| M & L Capital Management Ltd | $10.6 Mil | 2.6% | 19 | Hold | 13F |
| Nepsis Inc. | $9.7 Mil | 3.2% | 29 | Hold | 13F |
| Cambridge Financial Group, Inc. | $7.3 Mil | 2.7% | 33 | Hold | 13F |
| Eleva Capital SAS | $5.8 Mil | 1.7% | 24 | New | 13F |
| First Washington CORP | $5.3 Mil | 1.5% | 50 | Hold | 13F |
ANET Trade Sentinel
High Conviction
CONVICTION RATIONALE
Conviction is high, based on accelerating revenue growth to 35.1% and management repeatedly raising its 2026 AI sales target to $3.5 billion. A $6.2 billion deferred revenue balance provides strong visibility. While supply constraints are a headwind, they appear to be a function of overwhelming demand, not a structural business flaw.
STOCK ARCHETYPE
Infrastructure Build-Out(Number of devices sold) x (Average Selling Price) + Recurring Revenue from Software/Services Selling high-performance, software-differentiated systems into the most demanding network environments (AI/Cloud), where performance and reliability command a premium over commoditized hardware.
INVESTMENT THESIS
Evidence points to Arista successfully capturing a massive AI upgrade cycle, with accelerating growth and rising financial targets.
- Full-year 2026 revenue guidance was raised to $11.5 billion, representing 27.7% growth.
- The AI revenue target for 2026 was increased to $3.5 billion.
- Deferred revenue reached $6.2 billion, signaling a large backlog of future sales.
- Purchase commitments for components grew to $8.9 billion.
- Latest-quarter revenue growth accelerated to 35.1% year-over-year.
PRIMARY RISK
Heavy reliance on two customers, who provided 26% and 16% of 2025 revenue, and a primary chip supplier (Broadcom) creates significant risk if demand shifts or supply is disrupted.
- Two customers accounted for 26% and 16% of total revenue in 2025.
- The company is 'primarily reliant' on Broadcom for its switching chips.
- Management states 'demand is outstripping our supply this year'.
- Supply chain shortages are described as a '1- or 2-year phenomena'.
- Gross margin is pressured by paying more to assure supply continuity.
| KPI | Status | Rationale |
|---|---|---|
| AI Networking Revenue Target | A raised target of $3.5 billion in AI revenue for fiscal year 2026. - Accelerating | The consistent and significant upward revisions to the AI revenue target demonstrate accelerating management confidence and demand visibility in Arista's most critical growth market. The company is more than doubling its AI sales annually based on this new target. |
| Year-over-Year Revenue Growth | 35.1% year-over-year growth for the latest reported quarter ended 6/30/2026. - Accelerating | The company's overall revenue growth is not only strong but accelerating, indicating broad-based momentum that complements the specific strength seen in the AI segment. This acceleration is a key indicator of robust operational health. |
| Net Promoter Score (NPS) | 89 (Q1 2026) | Measures customer satisfaction and loyalty. A high score reflects the quality of Arista's products and support, which is a key part of its competitive moat. |
| Cumulative 800-gigabit Ethernet Deployments | >100 customers (Q1 2026) | Shows adoption of Arista's latest generation of high-speed networking technology, which is critical for AI and modern data centers. |
AI Demand Momentum vs. Supply Chain Bottlenecks
BULL VIEW
Bulls believe record demand, evidenced by 35.1% revenue growth and a $3.5 billion AI target, will power through any temporary supply issues, driving sustained earnings growth.
CORE TENSION
Can accelerating AI-driven demand (35.1% growth) overcome severe supply constraints, which prompted a -15.0% post-earnings stock reaction?
PREVAILING SENTIMENT
The latest evidence favors the bulls. Forward-looking indicators like the $8.9 billion in purchase commitments suggest the company is successfully managing supply to meet its raised guidance.
BEAR VIEW
Bears fear the '1- or 2-year' supply problem will cap growth, allowing larger rivals to capture market share Arista cannot service, justifying the recent -15.0% stock drop.
| Timeline | Event & Metric To Watch |
|---|---|
August 4th, 2026 | Execution Disappointment Versus High Expectations Watch: Q2 results and Q3 guidance for revenue and gross margin, particularly in light of stated supply constraints. |
August 4th, 2026 | Q2 2026 Earnings Report Watch: Arista Networks will release its financial results for the quarter ended June 30th, 2026. |
9/1/2026 | Peer HPE Earnings Report Watch: Peer Hewlett Packard Enterprise (HPE) is scheduled to report earnings. |
9/2/2026 | Peer Ciena Earnings Report Watch: Peer Ciena (CIEN) is scheduled to report earnings. |
11/2/2026 | Q3 2026 Earnings Report Watch: The next scheduled earnings report for Arista Networks. |
11/9/2026 | AI Demand Deceleration Signal Watch: Peer earnings reports (Dell, Cisco) for signs of slowing or shifting cloud and AI capital expenditures. |
11/10/2026 | Competitive Inroads in AI Networking Watch: Major AI-related product launches or significant customer wins announced by competitors like Cisco or HPE during their earnings calls. |
this year | New 1.6T AI Rack Systems Watch: Company is co-designing AI rack systems with 1.6T switching emerging this year. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-08 | Analyst Reaffirms Bullish Stance Details: An analyst reiterated a Strong Buy rating with a $216 price target, citing AI Fabrics, switching, and other growth drivers. | +11.0% $166.46 -> $184.69 |
2026-07-02 | Stock Nears Buy Point Details: An article noted that Arista's stock was trading close to a 177.48 entry from a cup-with-handle base, highlighting the company is managing supply challenges. | +4.0% $166.62 -> $173.28 |
2026-06-09 | 1.6T AI Fabric Portfolio Launch Details: Arista introduced its next-generation 1.6T networking platforms, the 7060XE7 Series, designed for rack-scale AI infrastructure, citing collaboration with Meta, Microsoft, and Oracle. | -3.0% $156.40 -> $151.76 |
2026-05-05 | Q1 2026 Earnings Reaction Details: Arista reported Q1 earnings and revenue that topped estimates and again raised full-year guidance to 27.7% growth. However, the stock fell -15.0% as guidance was perceived to underwhelm. | -14.8% $172.62 -> $147.06 |
2026-03-17 | AI Revenue Target Highlighted Details: News reports highlighted Arista's target of $3.25 billion in AI networking revenue for FY2026, representing nearly 30% of its then-projected $11.25 billion total revenue. | +0.5% $135.35 -> $136.07 |
2026-02-12 | Q4 2025 Earnings and Guidance Details: The company reported Q4 2025 results and increased its 2026 guidance to 25% annual growth, targeting $11.25 billion in revenue. The stock reaction was +1.0%. | +0.7% $140.66 -> $141.59 |
Position Sizing
2% - 4%
REDUCED POSITION
Sizing is volatility-based: ANET trades at roughly 67% annualized options-implied volatility versus about 15% for the S&P 500 (4.6x the market), around the 100th percentile of its own trailing year. A 2% - 4% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
CSCO - Cisco Systems
Incumbent Scale PlayCisco offers exposure to the same networking trends but with 6.3 times the revenue scale and a much broader, more established enterprise customer base and channel.
NVDA - Nvidia
Vertically Integrated AINvidia provides a complete, vertically integrated AI solution, bundling its dominant GPUs with its proprietary InfiniBand and NVLink interconnects, competing directly with Arista's Ethernet-based approach.
The premier, pure-play 'arms dealer' providing the critical high-speed Ethernet plumbing for the AI infrastructure gold rush.
Arista is a direct beneficiary of the massive capital expenditures by cloud and AI leaders. Its core advantage is a single, highly reliable operating system (EOS) that simplifies operations for the world's most complex networks. While heavily concentrated in a few large customers, the company is leveraging its data center credibility to expand into the enterprise campus market. The primary investment thesis is that as AI workloads grow, the demand for Arista's high-performance, open-standards-based networking will continue to accelerate.
Continued large-scale AI fabric wins, especially with new Cloud Titans or Neoclouds; evidence of market share gains in campus networking; and sustained high-double-digit revenue growth.
A major cloud titan customer significantly reducing spend or shifting to a competitor's proprietary fabric (like Nvidia's NVLink/InfiniBand) or an in-house solution; a material slowdown in AI-related capex.
Quarter-to-quarter volatility in the deferred revenue balance, which management explicitly flags as unpredictable due to the timing of large project acceptances.
Repricing Catalyst
The unprecedented demand for AI networking, which is outstripping supply and has led management to repeatedly raise full-year revenue guidance.
Network Software and Services
$1.4B TTM (16% of Total)What It Is
Sells subscription-based offerings including A-Care support services, CloudVision for network management, and Arista AVA (Autonomous Virtual Assist) for AI-driven operations. These are sold to Arista's entire customer base.
Who Pays & How
Customers pay for high-quality technical support, simplified network operations through automation and observability, and proactive issue identification. Renewals of maintenance and support contracts are a key part of this revenue stream.
Competition
Arista Networks — Investor Video Playlist
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Communications Equipment Resources |
| Light Reading |
| Fierce Network |
| Telecoms.com |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.