Arista Networks (ANET)
Market Price (11/6/2026): $161.75 | Market Cap: $204.4 BilInvestor Relations Sector: Information Technology | Industry: Communications Equipment
Arista Networks (ANET)
Market Price (11/6/2026): $161.75Market Cap: $204.4 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 41% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 44% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 44%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 42%, CFO LTM is 5.2 Bil, FCF LTM is 5.0 Bil Stock buyback supportStock Buyback 3Y Total is 2.0 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 -2.9% 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 41% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 44% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 44%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 42%, CFO LTM is 5.2 Bil, FCF LTM is 5.0 Bil |
| Stock buyback supportStock Buyback 3Y Total is 2.0 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 -2.9% |
| 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
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Arista Networks (ANET) stock has lost about 10% since 7/31/2026 because of the following key factors:
1. Broader Technology and AI Infrastructure Spending Concerns.
Arista Networks (ANET) experienced downward pressure due to a broader sell-off in technology and AI-related stocks, particularly evident with an 8.3% plunge on October 30, 2026. This decline was largely fueled by renewed investor concerns about the substantial capital expenditures required for building AI infrastructure and the uncertainty surrounding whether these massive investments would yield sufficient returns. Analysts noted that the market is increasingly questioning if fiscal 2027 could mark a peak in the current phase of AI infrastructure spending, leading to caution even amidst strong company-specific results.
2. Significant Insider Selling Activity.
Between August and late October 2026, several key insiders at Arista Networks executed substantial share sales, signaling potential concerns about the stock's valuation. Andreas Bechtolsheim, a 10% owner, sold a cumulative total exceeding $200 million in shares through multiple transactions, including over $60 million on both August 5, 2026, and August 27, 2026, and an additional $45.86 million on October 30, 2026. Similarly, trusts associated with CEO and Chairperson Jayshree Ullal sold shares totaling over $150 million in October 2026, with a single transaction on October 8, 2026, valued at approximately $97.64 million. The aggregate insider selling of over $1.5 billion in the preceding twelve months, with no insider purchases, reflected a lack of buying confidence.
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Arista Networks (ANET) stock has lost about 10% since 7/31/2026 because of the following key factors:
1. Broader Technology and AI Infrastructure Spending Concerns.
Arista Networks (ANET) experienced downward pressure due to a broader sell-off in technology and AI-related stocks, particularly evident with an 8.3% plunge on October 30, 2026. This decline was largely fueled by renewed investor concerns about the substantial capital expenditures required for building AI infrastructure and the uncertainty surrounding whether these massive investments would yield sufficient returns. Analysts noted that the market is increasingly questioning if fiscal 2027 could mark a peak in the current phase of AI infrastructure spending, leading to caution even amidst strong company-specific results.
2. Significant Insider Selling Activity.
Between August and late October 2026, several key insiders at Arista Networks executed substantial share sales, signaling potential concerns about the stock's valuation. Andreas Bechtolsheim, a 10% owner, sold a cumulative total exceeding $200 million in shares through multiple transactions, including over $60 million on both August 5, 2026, and August 27, 2026, and an additional $45.86 million on October 30, 2026. Similarly, trusts associated with CEO and Chairperson Jayshree Ullal sold shares totaling over $150 million in October 2026, with a single transaction on October 8, 2026, valued at approximately $97.64 million. The aggregate insider selling of over $1.5 billion in the preceding twelve months, with no insider purchases, reflected a lack of buying confidence.
3. Premium Valuation Sensitivity.
ANET traded at a significant premium to its industry peers, reflecting high market expectations for continued rapid growth. For instance, on November 2, 2026, the stock traded at roughly 35 times estimated forward earnings, and on November 3, 2026, it was trading at 48.67 times forward earnings. This elevated valuation made the stock particularly sensitive to any shifts in investor sentiment, macroeconomic concerns, or perceptions of slowing demand or margin pressure. Despite robust fiscal Q3 2026 earnings, which beat estimates and saw revenue grow 58.5% year-over-year to $3.66 billion and non-GAAP diluted EPS reach $1.20, the stock initially rallied and then surrendered a substantial portion of its gains, indicating that underlying valuation concerns persisted.
4. Moderating Gross Margins.
Arista Networks experienced a slight moderation in its gross margins. The non-GAAP gross margin declined from 65.6% in fiscal Q2 2025 to 63.4% in fiscal Q2 2026. For fiscal Q3 2026, the non-GAAP gross margin was reported at 64.0%, down from 65.2% in the prior year's period. Management's guidance for fiscal 2027 projected gross margins to be between 62% and 64%. This downward trend in gross margins, partially attributed to pricing terms with large cloud customers and higher component costs, contributed to investor caution despite strong revenue growth.
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Stock Movement Drivers
Fundamental Drivers
The -11.7% change in ANET stock from 7/31/2026 to 11/5/2026 was primarily driven by a -30.7% change in the company's P/E Multiple.| (LTM values as of) | 7312026 | 11052026 | Change |
|---|---|---|---|
| Stock Price ($) | 180.35 | 159.16 | -11.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 9,710 | 11,890 | 22.5% |
| Net Income Margin (%) | 38.3% | 40.0% | 4.3% |
| P/E Multiple | 61.0 | 42.3 | -30.7% |
| Shares Outstanding (Mil) | 1,258 | 1,262 | -0.4% |
| Cumulative Contribution | -11.7% |
Market Drivers
7/31/2026 to 11/5/2026| Return | Correlation | |
|---|---|---|
| ANET | -11.7% | |
| Market (SPY) | -1.9% | 66.2% |
| Sector (XLK) | -7.4% | 74.5% |
Fundamental Drivers
The -7.8% change in ANET stock from 4/30/2026 to 11/5/2026 was primarily driven by a -31.7% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 11052026 | Change |
|---|---|---|---|
| Stock Price ($) | 172.71 | 159.16 | -7.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 9,006 | 11,890 | 32.0% |
| Net Income Margin (%) | 39.0% | 40.0% | 2.5% |
| P/E Multiple | 61.9 | 42.3 | -31.7% |
| Shares Outstanding (Mil) | 1,258 | 1,262 | -0.4% |
| Cumulative Contribution | -7.8% |
Market Drivers
4/30/2026 to 11/5/2026| Return | Correlation | |
|---|---|---|
| ANET | -7.8% | |
| Market (SPY) | 2.3% | 53.9% |
| Sector (XLK) | 1.9% | 64.2% |
Fundamental Drivers
The 0.9% change in ANET stock from 10/31/2025 to 11/5/2026 was primarily driven by a 49.5% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 10312025 | 11052026 | Change |
|---|---|---|---|
| Stock Price ($) | 157.69 | 159.16 | 0.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 7,951 | 11,890 | 49.5% |
| Net Income Margin (%) | 40.9% | 40.0% | -2.3% |
| P/E Multiple | 60.9 | 42.3 | -30.6% |
| Shares Outstanding (Mil) | 1,256 | 1,262 | -0.5% |
| Cumulative Contribution | 0.9% |
Market Drivers
10/31/2025 to 11/5/2026| Return | Correlation | |
|---|---|---|
| ANET | 0.9% | |
| Market (SPY) | 8.4% | 56.5% |
| Sector (XLK) | 8.4% | 65.7% |
Fundamental Drivers
The 217.7% change in ANET stock from 10/31/2023 to 11/5/2026 was primarily driven by a 112.5% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 10312023 | 11052026 | Change |
|---|---|---|---|
| Stock Price ($) | 50.09 | 159.16 | 217.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,595 | 11,890 | 112.5% |
| Net Income Margin (%) | 34.0% | 40.0% | 17.6% |
| P/E Multiple | 32.7 | 42.3 | 29.3% |
| Shares Outstanding (Mil) | 1,241 | 1,262 | -1.7% |
| Cumulative Contribution | 217.7% |
Market Drivers
10/31/2023 to 11/5/2026| Return | Correlation | |
|---|---|---|
| ANET | 217.7% | |
| Market (SPY) | 81.3% | 57.6% |
| Sector (XLK) | 101.5% | 67.7% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| ANET Return | 98% | -16% | 94% | 88% | 19% | 21% | 776% |
| Peers Return | 62% | -12% | 20% | 37% | 47% | 58% | 444% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 105% |
Monthly Win Rates [3] | |||||||
| ANET Win Rate | 75% | 42% | 67% | 83% | 75% | 55% | |
| Peers Win Rate | 65% | 40% | 60% | 63% | 57% | 53% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 45% | |
Max Drawdowns [4] | |||||||
| ANET Max Drawdown | -17% | -37% | -22% | -20% | -50% | -27% | |
| Peers Max Drawdown | -16% | -41% | -25% | -32% | -38% | -43% | |
| 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 11/5/2026 (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.
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| 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.
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Like Cisco, but specializing in high-performance networking for cloud data centers.
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- 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.
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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.
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- Celestica Inc. (CLS)
- Sanmina Corporation (SANM)
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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)]
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- 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.
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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.
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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.
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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.
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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.
Peer Outperformance in Communications Equipment
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 10 | -4.5% | 87.9% | 147.0% | FLEX 399% · TTMI 335% · JBL 268% |
| Technology Distributors | 9 | 41.5% | 40.5% | 44.9% | AVT 115% · SNX 101% · CNXN 68% |
| Semiconductor Materials & Equipment | 28 | 19.0% | 38.5% | 18.3% | AXTI 298% · KLAC 227% · LRCX 219% |
| Communications Equipment ← | 36 | -6.2% | 75.3% | 17.2% | AAOI 700% · LITE 446% · ANET 380% |
| Electronic Components | 24 | 3.9% | 54.9% | 16.5% | CLS 1768% · BELFA 923% · APH 268% |
| Electronic Equipment & Instruments | 27 | -7.8% | 26.6% | 4.8% | PI 107% · OSIS 100% · CXT 61% |
| Semiconductors | 55 | -6.9% | 28.4% | -15.7% | MU 822% · NVDA 513% · AVGO 470% |
| Technology Hardware, Storage & Peripherals | 21 | -9.8% | 50.3% | -27.4% | WDC 540% · DELL 520% · SMCI 481% |
| Internet Services & Infrastructure | 6 | -1.5% | 35.3% | -29.3% | GDDY 65% · VRSN 37% · AKAM -27% |
| IT Consulting & Other Services | 30 | -22.2% | -1.8% | -32.0% | APLD 222% · IBM 142% · GIB -9% |
| Application Software | 125 | -11.5% | -10.1% | -49.9% | PLTR 496% · AGYS 140% · FROG 91% |
| Systems Software | 70 | -11.3% | 19.3% | -56.2% | ZETA 220% · CRWD 218% · CVLT 132% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 129.01 |
| Mkt Cap | 131.8 |
| Rev LTM | 26,881 |
| Op Inc LTM | 4,248 |
| FCF LTM | 4,587 |
| FCF 3Y Avg | 3,224 |
| CFO LTM | 5,967 |
| CFO 3Y Avg | 4,486 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 29.6% |
| Rev Chg 3Y Avg | 13.2% |
| Rev Chg Q | 35.4% |
| QoQ Delta Rev Chg LTM | 8.0% |
| Op Inc Chg LTM | 82.2% |
| Op Inc Chg 3Y Avg | 40.9% |
| Op Mgn LTM | 11.9% |
| Op Mgn 3Y Avg | 8.1% |
| QoQ Delta Op Mgn LTM | 1.5% |
| CFO/Rev LTM | 16.8% |
| CFO/Rev 3Y Avg | 14.2% |
| FCF/Rev LTM | 12.6% |
| FCF/Rev 3Y Avg | 9.0% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 131.8 |
| P/S | 3.8 |
| P/Op Inc | 28.5 |
| P/EBIT | 28.8 |
| P/E | 35.8 |
| P/CFO | 22.0 |
| Total Yield | 3.8% |
| Dividend Yield | 0.4% |
| FCF Yield 3Y Avg | 3.2% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -30.8% |
| 3M Rtn | -18.0% |
| 6M Rtn | 9.7% |
| 12M Rtn | 28.2% |
| 3Y Rtn | 202.6% |
| 1M Excs Rtn | -30.2% |
| 3M Excs Rtn | -17.4% |
| 6M Excs Rtn | 4.8% |
| 12M Excs Rtn | 18.5% |
| 3Y Excs Rtn | 132.8% |
Comparison Analyses
Price Behavior
| Market Price | $159.16 | |
| Market Cap ($ Bil) | 200.9 | |
| First Trading Date | 06/06/2014 | |
| Distance from 52W High | -26.6% | |
| 50 Days | 200 Days | |
| DMA Price | $193.25 | $165.95 |
| DMA Trend | up | up |
| Distance from DMA | -17.6% | -4.1% |
| 3M | 1YR | |
| Volatility | 54.5% | 56.2% |
| Downside Capture | 251.72 | 212.79 |
| Upside Capture | 233.11 | 199.89 |
| Correlation (S&P 500) | 55.6% | 52.3% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 4.08 | 3.10 | 2.55 | 2.26 | 2.29 | 1.88 |
| Up Beta | 7.62 | 3.26 | 1.24 | 1.16 | 1.90 | 1.32 |
| Down Beta | 4.04 | 4.43 | 4.44 | 3.15 | 2.73 | 2.13 |
| Up Capture | 270% | 247% | 240% | 264% | 383% | 2183% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 10 | 21 | 32 | 63 | 130 | 419 |
| Down Capture | 436% | 277% | 236% | 194% | 160% | 112% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 12 | 22 | 32 | 63 | 121 | 332 |
[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 | 3.7% | 56.2% | 0.27 | - |
| Sector ETF (XLK) | 11.0% | 28.3% | 0.35 | 65.6% |
| Equity (SPY) | 9.5% | 13.6% | 0.41 | 56.4% |
| Gold (GLD) | 3.6% | 28.7% | 0.11 | 21.5% |
| Commodities (DBC) | 37.7% | 21.2% | 1.40 | 0.6% |
| Real Estate (VNQ) | 12.0% | 14.2% | 0.55 | -4.8% |
| Bitcoin (BTCUSD) | -20.8% | 43.3% | -0.42 | 27.6% |
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 | 44.3% | 49.5% | 0.91 | - |
| Sector ETF (XLK) | 15.9% | 26.4% | 0.55 | 66.4% |
| Equity (SPY) | 11.3% | 17.3% | 0.48 | 57.3% |
| Gold (GLD) | 17.5% | 19.1% | 0.74 | 10.7% |
| Commodities (DBC) | 8.0% | 19.6% | 0.29 | 11.3% |
| Real Estate (VNQ) | 1.2% | 18.9% | -0.05 | 22.0% |
| Bitcoin (BTCUSD) | 5.9% | 51.5% | 0.29 | 24.6% |
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 | 40.6% | 46.0% | 0.91 | - |
| Sector ETF (XLK) | 22.4% | 25.3% | 0.81 | 62.0% |
| Equity (SPY) | 14.9% | 18.0% | 0.70 | 54.9% |
| Gold (GLD) | 12.0% | 16.5% | 0.59 | 7.1% |
| Commodities (DBC) | 7.6% | 18.1% | 0.33 | 13.5% |
| Real Estate (VNQ) | 5.7% | 20.7% | 0.23 | 28.0% |
| Bitcoin (BTCUSD) | 61.3% | 66.2% | 1.01 | 13.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 11/6/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 11/3/2026 | 5.0% | ||
| 8/4/2026 | 3.6% | 3.9% | -2.3% |
| 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% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 16 | 12 | 15 |
| # Negative | 9 | 12 | 9 |
| Median Positive | 5.7% | 11.3% | 12.5% |
| Median Negative | -6.4% | -9.9% | -2.5% |
| Max Positive | 20.4% | 28.8% | 25.7% |
| Max Negative | -15.7% | -16.4% | -24.0% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 11/3/2026 | 5.0% | ||
| 8/4/2026 | 3.6% | 3.9% | -2.3% |
| 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% |
| SUMMARY STATS | |||
| # Positive | 16 | 12 | 15 |
| # Negative | 9 | 12 | 9 |
| Median Positive | 5.7% | 11.3% | 12.5% |
| Median Negative | -6.4% | -9.9% | -2.5% |
| Max Positive | 20.4% | 28.8% | 25.7% |
| Max Negative | -15.7% | -16.4% | -24.0% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 11/04/2026 | 10-Q |
| 06/30/2026 | 08/05/2026 | 10-Q |
| 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 |
| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 11/04/2026 | 10-Q |
| 06/30/2026 | 08/05/2026 | 10-Q |
| 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 |
Recent Forward Guidance
Updated 11/4/2026Latest: Q3 2026 Earnings Reported 11/3/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Revenue | Reported | 3.90 Bil | 3.95 Bil | 4.00 Bil | 19.7% | Higher New | Guidance: 3.30 Bil for Q3 2026 | |
| Q4 2026 Non-GAAP operating margin | Reported | 48.0% | 48.5% | 49.0% | 0.0% | Same New | Guidance: 48.5% for Q3 2026 | |
| Q4 2026 Non-GAAP diluted net income per share | Reported | 1.26 | 1.28 | 1.3 | 19.6% | Higher New | Guidance: 1.07 for Q3 2026 | |
Prior: Q2 2026 Earnings Reported 8/4/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Revenue | Reported | 3.30 Bil | 17.9% | Higher New | Actual: 2.80 Bil for Q2 2026 | |||
| Q3 2026 Non-GAAP Operating Margin | Reported | 48.0% | 48.5% | 49.0% | 2.0% | Higher New | Actual: 46.5% for Q2 2026 | |
| Q3 2026 Non-GAAP Diluted Net Income Per Share | Reported | 1.06 | 1.07 | 1.08 | 21.6% | Higher New | Actual: 0.88 for Q2 2026 | |
Q1 2026 Earnings Reported 5/5/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | Reported | 2.80 Bil | 7.7% | Higher New | Actual: 2.60 Bil for Q1 2026 | |||
| Q2 2026 Non-GAAP Operating Margin | Reported | 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 | Reported | 0.88 | ||||||
Q4 2025 Earnings Reported 2/12/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | Reported | 2.60 Bil | 10.6% | Higher New | Guidance: 2.35 Bil for Q4 2025 | |||
| Q1 2026 Non-GAAP Gross Margin | Reported | 62.0% | 62.5% | 63.0% | 0 | Same New | Guidance: 62.5% for Q4 2025 | |
| Q1 2026 Non-GAAP Operating Margin | Reported | 46.0% | -1.5% | Lower New | Guidance: 47.5% for Q4 2025 | |||
Insider Activity
Updated 11/4/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Templeton, Mark B | Direct | Sell | 11042026 | 165.85 | 5,000 | 829,255 | 7,199,595 | Form | |
| 2 | Bechtolsheim, Andreas | by Trust | Sell | 11032026 | 171.19 | 267,892 | 45,859,344 | 30,860,571,828 | Form | |
| 3 | Duda, Kenneth | President and CTO | Direct | Sell | 10222026 | 180.91 | 17,333 | 3,135,761 | 2,347,524 | Form |
| 4 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 10222026 | 180.91 | 16,000 | 2,894,606 | 208,939,527 | Form |
| 5 | Duda, Kenneth | President and CTO | Foundation | Sell | 10222026 | 180.91 | 10,000 | 1,809,129 | 78,226,750 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Templeton, Mark B | Direct | Sell | 11042026 | 165.85 | 5,000 | 829,255 | 7,199,595 | Form | |
| 2 | Bechtolsheim, Andreas | by Trust | Sell | 11032026 | 171.19 | 267,892 | 45,859,344 | 30,860,571,828 | Form | |
| 3 | Duda, Kenneth | President and CTO | Direct | Sell | 10222026 | 180.91 | 17,333 | 3,135,761 | 2,347,524 | Form |
| 4 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 10222026 | 180.91 | 16,000 | 2,894,606 | 208,939,527 | Form |
| 5 | Duda, Kenneth | President and CTO | Foundation | Sell | 10222026 | 180.91 | 10,000 | 1,809,129 | 78,226,750 | Form |
| 6 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 10132026 | 217.10 | 18,656 | 4,050,139 | 1,036,565,362 | Form |
| 7 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 10132026 | 217.10 | 18,656 | 4,050,139 | 1,036,565,362 | Form |
| 8 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 10132026 | 217.10 | 93,241 | 20,242,229 | 3,350,332,453 | Form |
| 9 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 10132026 | 217.05 | 4,000 | 868,193 | 1,040,387,818 | Form |
| 10 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 10132026 | 217.05 | 4,000 | 868,193 | 1,040,387,818 | Form |
| 11 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 10132026 | 217.05 | 19,990 | 4,338,796 | 3,369,837,210 | Form |
| 12 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 10092026 | 217.14 | 13,860 | 3,009,571 | 1,041,699,765 | Form |
| 13 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 10092026 | 217.14 | 13,860 | 3,009,571 | 1,041,699,765 | Form |
| 14 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 10092026 | 217.14 | 69,272 | 15,041,777 | 3,375,613,986 | Form |
| 15 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 10082026 | 212.09 | 65,765 | 13,948,369 | 1,020,428,679 | Form |
| 16 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 10082026 | 212.09 | 65,765 | 13,948,369 | 1,020,428,679 | Form |
| 17 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 10082026 | 212.09 | 328,844 | 69,745,875 | 3,311,851,645 | Form |
| 18 | Breithaupt, Chantelle Yvette | Senior Vice President, CFO | Direct | Sell | 10082026 | 215.00 | 1,224 | 263,160 | 14,769,855 | Form |
| 19 | Templeton, Mark B | Direct | Sell | 10052026 | 204.37 | 5,000 | 1,021,829 | 9,893,353 | Form | |
| 20 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 9292026 | 211.40 | 8,948 | 1,891,569 | 1,030,970,910 | Form |
| 21 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 9292026 | 211.40 | 8,948 | 1,891,569 | 1,030,970,910 | Form |
| 22 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 9292026 | 211.40 | 44,726 | 9,454,884 | 3,370,462,177 | Form |
| 23 | Duda, Kenneth | President and CTO | Direct | Sell | 9232026 | 203.50 | 17,333 | 3,527,237 | 2,640,595 | Form |
| 24 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 9232026 | 203.50 | 16,000 | 3,255,975 | 238,280,020 | Form |
| 25 | Duda, Kenneth | President and CTO | Foundation | Sell | 9232026 | 203.50 | 10,000 | 2,034,982 | 90,027,613 | Form |
| 26 | Bechtolsheim, Andreas | by Trust | Sell | 9212026 | 198.95 | 300,000 | 59,686,334 | 35,919,841,935 | Form | |
| 27 | Templeton, Mark B | Direct | Sell | 9102026 | 197.16 | 5,000 | 985,788 | 10,530,184 | Form | |
| 28 | Breithaupt, Chantelle Yvette | Senior Vice President, CFO | Direct | Sell | 9032026 | 195.77 | 612 | 119,811 | 13,688,434 | Form |
| 29 | Bechtolsheim, Andreas | by Trust | Sell | 8312026 | 202.60 | 300,000 | 60,780,047 | 36,638,830,073 | Form | |
| 30 | Ullal, Jayshree | CEO and Chairperson | Direct | Sell | 8272026 | 191.79 | 13,809 | 2,648,491 | 1,902,027 | Form |
| 31 | Battles, Kelly Bodnar | Direct | Sell | 8252026 | 187.34 | 422 | 79,057 | 1,909,744 | Form | |
| 32 | Duda, Kenneth | President and CTO | Direct | Sell | 8242026 | 185.42 | 17,333 | 3,213,844 | 2,405,979 | Form |
| 33 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 8242026 | 185.42 | 16,000 | 2,966,680 | 188,229,882 | Form |
| 34 | Duda, Kenneth | President and CTO | Foundation | Sell | 8242026 | 185.42 | 10,000 | 1,854,176 | 83,882,903 | Form |
| 35 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 8142026 | 208.13 | 82,570 | 17,185,241 | 1,016,903,402 | Form |
| 36 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 8142026 | 208.13 | 82,570 | 17,185,241 | 1,016,903,402 | Form |
| 37 | Ullal, Jayshree | CEO and Chairperson | Trust for Nephew | Sell | 8142026 | 208.13 | 4,484 | 933,251 | 5,203,229 | Form |
| 38 | Ullal, Jayshree | CEO and Chairperson | Trust for Niece | Sell | 8142026 | 208.13 | 4,484 | 933,251 | 5,203,229 | Form |
| 39 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 8142026 | 208.13 | 399,401 | 83,127,084 | 3,327,693,284 | Form |
| 40 | Bechtolsheim, Andreas | Direct | Sell | 8102026 | 192.75 | 111,848 | Form | |||
| 41 | Bechtolsheim, Andreas | by Trust | Sell | 8102026 | 192.75 | 300,000 | 57,824,691 | 34,915,135,721 | Form | |
| 42 | Bechtolsheim, Andreas | by Trust | Sell | 8072026 | 203.30 | 300,000 | 60,989,688 | 36,887,182,793 | Form | |
| 43 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 8072026 | 201.22 | 767,029 | 154,341,086 | 3,297,579,075 | Form |
| 44 | Ullal, Jayshree | CEO and Chairperson | Trust for Nephew | Sell | 8072026 | 201.24 | 516 | 103,840 | 5,933,371 | Form |
| 45 | Ullal, Jayshree | CEO and Chairperson | Trust for Niece | Sell | 8072026 | 201.24 | 516 | 103,840 | 5,933,371 | Form |
| 46 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 8072026 | 201.22 | 165,717 | 33,345,457 | 999,756,024 | Form |
| 47 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 8072026 | 201.22 | 165,717 | 33,345,457 | 999,756,024 | Form |
| 48 | Giancarlo, Charles H | by Trust | Sell | 8052026 | 181.02 | 8,000 | 1,448,180 | 33,368,413 | Form | |
| 49 | Duda, Kenneth | President and CTO | Direct | Sell | 7222026 | 170.51 | 17,333 | 2,955,515 | 2,212,587 | Form |
| 50 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 7222026 | 170.51 | 16,000 | 2,728,220 | 175,828,316 | Form |
| 51 | Duda, Kenneth | President and CTO | Foundation | Sell | 7222026 | 170.51 | 10,000 | 1,705,137 | 78,845,519 | Form |
| 52 | Bechtolsheim, Andreas | by Trust | Sell | 7162026 | 180.77 | 300,000 | 54,231,399 | 32,853,932,474 | Form | |
| 53 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 7142026 | 187.18 | 36,888 | 6,904,534 | 960,998,276 | Form |
| 54 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 7142026 | 187.18 | 36,888 | 6,904,534 | 960,998,276 | Form |
| 55 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 7142026 | 187.18 | 160,802 | 30,098,211 | 3,210,999,290 | Form |
| 56 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 7132026 | 188.17 | 38,112 | 7,171,484 | 973,037,980 | Form |
| 57 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 7132026 | 188.17 | 38,112 | 7,171,484 | 973,037,980 | Form |
| 58 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 7132026 | 188.17 | 166,198 | 31,273,253 | 3,258,292,898 | Form |
| 59 | Bechtolsheim, Andreas | by Trust | Sell | 7072026 | 162.67 | 240,000 | 39,040,876 | 29,612,999,969 | Form | |
| 60 | Bechtolsheim, Andreas | by Trust | Sell | 7062026 | 164.22 | 260,000 | 42,696,873 | 29,934,293,155 | Form | |
| 61 | Giancarlo, Charles H | by Trust | Sell | 7062026 | 167.06 | 8,000 | 1,336,474 | 32,131,003 | Form | |
| 62 | Duda, Kenneth | President and CTO | Direct | Sell | 6242026 | 171.42 | 17,333 | 2,971,253 | 2,224,368 | Form |
| 63 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 6242026 | 171.42 | 16,000 | 2,742,760 | 179,508,127 | Form |
| 64 | Duda, Kenneth | President and CTO | Foundation | Sell | 6242026 | 171.42 | 10,000 | 1,714,221 | 80,979,807 | Form |
| 65 | Bechtolsheim, Andreas | by Trust | Sell | 6172026 | 165.57 | 260,000 | 43,049,018 | 30,224,226,743 | Form | |
| 66 | Bechtolsheim, Andreas | Direct | Sell | 6092026 | 157.93 | 220,000 | 34,743,812 | 17,663,754 | Form | |
| 67 | Bechtolsheim, Andreas | Direct | Sell | 6082026 | 163.06 | 240,000 | 39,135,436 | 54,112,567 | Form | |
| 68 | Giancarlo, Charles H | by Trust | Sell | 6032026 | 169.09 | 8,000 | 1,352,728 | 33,874,499 | Form | |
| 69 | Ullal, Jayshree | CEO and Chairperson | Direct | Sell | 5282026 | 155.04 | 13,809 | 2,141,004 | 1,537,572 | Form |
| 70 | Breithaupt, Chantelle Yvette | Senior Vice President, CFO | Direct | Sell | 5282026 | 157.00 | 2,448 | 384,336 | 10,112,056 | Form |
| 71 | Bechtolsheim, Andreas | by Trust | Sell | 5282026 | 156.86 | 220,000 | 34,508,850 | 28,674,195,150 | Form | |
| 72 | Battles, Kelly Bodnar | Direct | Sell | 5262026 | 146.44 | 422 | 61,797 | 1,475,808 | Form | |
| 73 | Wassenaar, Yvonne | Direct | Sell | 5222026 | 140.93 | 971 | 136,846 | 1,378,893 | Form | |
| 74 | Duda, Kenneth | President and CTO | Direct | Sell | 5202026 | 140.08 | 32,000 | 4,482,711 | 1,817,739 | Form |
| 75 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 5202026 | 140.08 | 16,000 | 2,241,356 | 148,933,611 | Form |
| 76 | Duda, Kenneth | President and CTO | Foundation | Sell | 5202026 | 140.08 | 10,000 | 1,400,847 | 67,576,846 | Form |
| 77 | Giancarlo, Charles H | by Trust | Sell | 5052026 | 175.40 | 8,000 | 1,403,202 | 36,541,650 | Form | |
| 78 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 4242026 | 177.44 | 64,000 | 11,356,159 | 924,321,593 | Form |
| 79 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 4242026 | 177.44 | 64,000 | 11,356,159 | 924,321,593 | Form |
| 80 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 4242026 | 177.44 | 300,000 | 53,231,996 | 3,102,007,646 | Form |
| 81 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 4222026 | 167.31 | 45,920 | 7,682,967 | 884,626,563 | Form |
| 82 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 4222026 | 167.31 | 45,920 | 7,682,967 | 884,626,563 | Form |
| 83 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 4222026 | 167.31 | 214,299 | 35,854,794 | 2,986,136,223 | Form |
| 84 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 1 | Sell | 4202026 | 159.32 | 50,000 | 7,965,805 | 849,665,733 | Form |
| 85 | Ullal, Jayshree | CEO and Chairperson | Trust for Child 2 | Sell | 4202026 | 159.32 | 50,000 | 7,965,805 | 849,665,733 | Form |
| 86 | Ullal, Jayshree | CEO and Chairperson | by Trust | Sell | 4202026 | 159.32 | 250,000 | 39,829,021 | 2,877,568,675 | Form |
| 87 | Wassenaar, Yvonne | Direct | Sell | 4172026 | 153.07 | 1,395 | 213,533 | 1,497,636 | Form | |
| 88 | Ullal, Jayshree | CEO and Chairperson | Direct | Sell | 4152026 | 150.11 | 112,812 | 16,934,672 | 1,488,682 | Form |
| 89 | Giancarlo, Charles H | by Trust | Sell | 4032026 | 125.95 | 8,000 | 1,007,603 | 27,247,234 | Form | |
| 90 | Wassenaar, Yvonne | Direct | Sell | 3182026 | 134.34 | 1,395 | 187,404 | 1,501,788 | Form | |
| 91 | Giancarlo, Charles H | by Trust | Sell | 3042026 | 128.67 | 8,000 | 1,029,372 | 229,550 | Form | |
| 92 | Wassenaar, Yvonne | Direct | Sell | 2272026 | 132.44 | 1,815 | 240,380 | 1,665,314 | Form | |
| 93 | Battles, Kelly Bodnar | Direct | Sell | 2252026 | 128.06 | 422 | 54,042 | 1,220,307 | Form | |
| 94 | Duda, Kenneth | President and CTO | Direct | Sell | 2192026 | 142.44 | 32,000 | 4,557,938 | 1,848,244 | Form |
| 95 | Duda, Kenneth | President and CTO | Foundation | Sell | 2192026 | 142.44 | 10,000 | 1,424,355 | 72,983,960 | Form |
| 96 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 2192026 | 142.29 | 16,000 | 2,276,709 | 158,112,858 | Form |
| 97 | Giancarlo, Charles H | by Trust | Sell | 2042026 | 140.43 | 8,000 | 1,123,469 | 1,374,002 | Form | |
| 98 | Duda, Kenneth | President and CTO | Direct | Sell | 1222026 | 128.43 | 30,000 | 3,852,972 | 1,666,539 | Form |
| 99 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 1222026 | 128.43 | 16,000 | 2,054,918 | 144,764,864 | Form |
| 100 | Duda, Kenneth | President and CTO | Foundation | Sell | 1222026 | 128.43 | 10,000 | 1,284,322 | 67,093,005 | Form |
| 101 | Giancarlo, Charles H | by Trust | Sell | 1062026 | 133.79 | 8,000 | 1,070,291 | 2,379,258 | Form | |
| 102 | Duda, Kenneth | President and CTO | Direct | Sell | 12192025 | 123.16 | 30,000 | 3,694,672 | 1,598,069 | Form |
| 103 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 12192025 | 123.16 | 16,000 | 1,970,493 | 140,787,769 | Form |
| 104 | Duda, Kenneth | President and CTO | Foundation | Sell | 12192025 | 123.16 | 10,000 | 1,231,557 | 65,568,094 | Form |
| 105 | Giancarlo, Charles H | by Trust | Sell | 12032025 | 128.09 | 8,000 | 1,024,749 | 3,302,765 | Form | |
| 106 | Ullal, Jayshree | CEO and Chairperson | Direct | Sell | 11262025 | 124.55 | 24,042 | 2,994,534 | 1,235,205 | Form |
| 107 | Battles, Kelly Bodnar | Direct | Sell | 11252025 | 117.15 | 422 | 49,436 | 1,051,982 | Form | |
| 108 | Duda, Kenneth | President and CTO | Direct | Sell | 11192025 | 128.61 | 30,000 | 3,858,423 | 1,668,897 | Form |
| 109 | Duda, Kenneth | President and CTO | Childrens' Trust | Sell | 11192025 | 128.61 | 16,000 | 2,057,828 | 149,085,508 | Form |
| 110 | Duda, Kenneth | President and CTO | Foundation | Sell | 11192025 | 128.61 | 10,000 | 1,286,140 | 69,760,231 | Form |
| 111 | Giancarlo, Charles H | by Trust | Sell | 11052025 | 157.12 | 8,000 | 1,256,957 | 5,308,129 | Form |
Investor Activity (13F)
Updated Nov 6, 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 Arista's clear execution in a confirmed AI networking 'super cycle.' Revenue growth is accelerating, with the latest quarter at 58.5% YoY. Management's initial 2027 outlook for 38% to 40% growth provides strong visibility, supported by an expanding AI customer base that has surpassed 100 clients and best-in-class operating margins of 43.8%.
STOCK ARCHETYPE
Capital Equipment & Infrastructure(Number of networking devices sold) x (Average Selling Price) + (Subscription Software & Services Revenue) Operating leverage from selling high-value, software-differentiated hardware at scale into the hyper-growth AI market, where incremental sales and marketing costs are low relative to revenue.
INVESTMENT THESIS
Evidence suggests it is successfully capturing this multi-year opportunity, displacing incumbents and winning with key AI infrastructure builders.
- Latest-quarter revenue growth accelerated to 58.5% year-over-year.
- Initial 2027 guidance projects 38% to 40% annual revenue growth.
- The company has surpassed 100 customers for its Etherlink AI products.
- Trailing-twelve-month operating margin reached a five-year peak of 43.8%.
- Management raised its 2026 revenue growth guidance four times to 48%.
PRIMARY RISK
An outsized portion of total revenue in 2025 came from two large cloud customers, creating significant dependency and exposing the company to abrupt changes in their capital spending plans.
- In 2025, two customers represented 16% and 26% of total revenue.
- Trailing-twelve-month gross margin declined 1.4 percentage points to 62.9%.
- Competitor Cisco Systems projects a comparable $7.5 billion in AI revenue for its fiscal 2027.
- Company filings warn customers can cancel or modify purchase commitments with little notice.
| KPI | Status | Rationale |
|---|---|---|
| Revenue Growth | 58.5% year-over-year growth for the quarter ended 9/30/2026 - Accelerating | Year-over-year revenue growth has shown significant acceleration over the past three quarters. The latest quarter's 58.5% growth was described by the CEO as the company's largest ever as a public company. This powerful YoY trend is supported by strong sequential momentum of 20.5% growth over the prior quarter. |
| AI Segment Revenue | A forecast for the AI fabrics segment to double to approximately $7 billion in FY2027. - Accelerating | The AI segment is experiencing hyper-growth, with management guiding for it to more than double in 2026 and double again in 2027. The CEO noted the company is in a "super cycle of AI," having surpassed 100 customers for its Etherlink products, up from just 4 or 5 when the journey began. |
| AI Fabrics Revenue Target (Annual) | (FY 2027 Guidance) | This is the primary metric for the company's success in the AI networking super-cycle. It reflects demand from cloud titans and AI providers for high-speed Ethernet fabrics to connect AI accelerators. |
| Cognitive Campus Revenue Target (Annual) | (FY 2027 Guidance) | Measures the progress of the company's diversification strategy into the enterprise campus market, a traditional stronghold of competitors. Strong growth indicates market share gains and the success of its unified EOS/CloudVision platform strategy. |
| Customer Concentration | (FY 2025) | Market rewards While high concentration is inherent to the business model, the addition of one or two new major customers, as management anticipates, would be viewed positively as a sign of diversification among the largest spenders.. Indicates a high degree of reliance on a small number of very large 'Cloud and AI Titan' customers for a substantial portion of revenue. This is both a source of rapid growth and a key risk. |
AI Super Cycle vs. Concentrated Cyclical Peak?
BULL VIEW
Arista is establishing a durable leadership position in open Ethernet for AI, evidenced by its expanding base of over 100 AI customers. This diversification will sustain growth even as individual customer spending fluctuates.
CORE TENSION
Can the expansion to 100+ AI customers and a projected $7 billion AI business offset the risk from two customers who comprised 40% of 2025 revenue?
PREVAILING SENTIMENT
The latest evidence favors the bull view. Accelerating Q3 growth of 58.5% and strong initial 2027 guidance of 38-40% suggest the super cycle's momentum is currently overwhelming concentration risk.
BEAR VIEW
The current hyper-growth is a temporary, cyclical boom driven by just two main customers. A spending pause is inevitable, and the company's growth will decelerate sharply, revealing the fragility of its concentrated revenue base.
| Timeline | Event & Metric To Watch |
|---|---|
11/23/2026 | AI Spending Volatility Watch: Commentary from peer HPE on AI infrastructure spending trends, which could signal a broader slowdown or digestion period. |
in the coming months | Santa Clara Facility Completion Watch: Construction on the company's expanded Santa Clara facilities is expected to be completed. |
1/26/2027 | EXTR Earnings Report Watch: Peer Extreme Networks is scheduled to report earnings. |
2/1/2027 | DELL Earnings Report Watch: Peer Dell Technologies is scheduled to report earnings. |
2/9/2027 | Supply Constraints Impacting Growth Watch: Peer Cisco's commentary on supply chain, followed by Arista's Q4 results and FY27 outlook for any signs of worsening constraints. |
2/10/2027 | Margin Pressure From Mix Watch: Q4 gross margin results relative to the 63-64% guided range and any change to the FY27 outlook. |
2/10/2027 | Q4 2026 Earnings Report Watch: The company is scheduled to report Q4 and full-year 2026 earnings. |
| Date | Event | Stock Impact |
|---|---|---|
2026-11-03 | Record Q3 Results and Guidance Details: The company reported its Q3 2026 results on November 3, 2026, with record year-over-year revenue growth of 58.5% and provided a strong initial outlook for FY2027. | +8.7% $164.14 -> $178.48 |
2026-10-19 | Significant Stock Price Decline Details: During October, the stock declined nearly 20% from its highs. Press reports attributed the slump to broader AI sector sentiment rather than company-specific issues. | +2.4% $176.98 -> $181.19 |
2026-10-07 | New AI Architectures Announced Details: The company announced its open Ethernet rack-scale portfolio for scale-up and scale-out AI infrastructure, developed in partnership with leading technology companies. | -2.0% $215.36 -> $210.97 |
2026-09-10 | Investor Conference Presentations Details: In early September 2026, the company presented at both the Citi Global TMT Conference and the Goldman Sachs Communacopia + Technology Conference, engaging with the investment community. | +3.5% $192.93 -> $199.59 |
2026-08-04 | Positive Q2 Earnings Reaction Details: Following its Q2 2026 earnings report on August 4, 2026, the stock had a positive two-day reaction of 7.0%. The company again raised its full-year 2026 guidance. | +6.7% $184.89 -> $197.31 |
2026-06-09 | Next-Gen Product Portfolio Unveiled Details: The company introduced its next-generation 1.6 Terabit portfolio for AI fabrics, positioning itself for the next wave of network infrastructure upgrades. | -3.0% $156.40 -> $151.76 |
2026-05-05 | Negative Post-Earnings Stock Reaction Details: The company reported Q1 2026 earnings on May 5, 2026. Despite raising its full-year revenue guidance, the stock experienced a two-day negative reaction of -15.0%. | -14.8% $172.62 -> $147.06 |
Position Sizing
2% - 4%
REDUCED POSITION
Sizing is volatility-based: ANET trades at roughly 50% annualized realized (three-month) volatility versus about 10% for the S&P 500 (5.0x the market). 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 AI networking trend but with a much larger, more diversified revenue base across enterprise, security, and service provider markets, providing a lower-volatility profile.
HPE - Hewlett Packard Enterprise
Enterprise AI ExposureHPE provides a way to invest in the AI infrastructure buildout with a focus on enterprise customers, a segment where Arista is still a challenger, and offers a broader portfolio including servers and storage.
Arista is the premier 'picks and shovels' provider for the AI networking super-cycle, leveraging its unified software (EOS) to displace incumbents and capture the shift to open Ethernet standards.
Arista has successfully pivoted from a cloud data center specialist to the central nervous system for all 'centers of data,' most critically for AI. Its single, high-quality operating system (EOS) provides a key architectural advantage in reliability and automation, allowing it to win in complex, large-scale AI fabrics. The company is experiencing demand that outstrips supply, driving massive growth and providing strong forward visibility. While reliant on a few large customers, Arista is diversifying by adding new titans and rapidly growing its enterprise campus business.
Continued design wins for its Etherlink portfolio with multiple AI accelerator types, market share gains in high-speed switching against Cisco and Nvidia's InfiniBand, and achieving its aggressive 2027 revenue targets for AI and Campus.
A significant slowdown in capital expenditures from its key cloud titan customers, loss of a major customer, or an inability to secure component supply, leading to a failure to meet its raised guidance.
Quarter-to-quarter volatility in deferred revenue balances, which management states can move significantly independent of underlying business drivers. Short-term stock price fluctuations based on general AI sector sentiment, as noted in an October analyst report.
Repricing Catalyst
Network Software and Services
$1.6B TTM (15% of Total)What It Is
Sells subscription-based offerings including A-Care support services, CloudVision for network management and automation, observability tools, and advanced security solutions. These are sold to Arista's entire customer base across all sectors.
Who Pays & How
Customers pay for these subscriptions to simplify network operations, gain deep visibility, automate provisioning, and receive high-quality technical support. CloudVision, for example, enables a 'zero-touch' operational experience across the entire network.
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 |
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