Arista Networks

ANET · NYSE · Information Technology · Financials, fiscal 2016 to 2025

ANET · Last close · October 26, 2026

$177.24

Arista Networks' revenue rose 28.6% to $9.0 billion in fiscal 2025. Its operating margin was 42.8%, up from 42.0% a year earlier. Free cash flow was $4.3 billion, up 15.7%. It paid out $1.6 billion in dividends and buybacks, 38% of free cash flow. The diluted share count fell 0.4%.

Arista Networks, Inc. Latest fiscal year ended December 31, 2025 10-K filed February 17, 2026 · 0001596532-26-000013 Updated October 10, 2026

Revenue

$9.0B

28.6%

Operating margin

42.8%

0.8 pts

Net income

$3.5B

23.1%

Free cash flow

$4.3B

15.7%

Return on equity

31.4%

1.7 pts

Market cap

$226.2B

Oct 26 close

P/E

55.9x

On $3.17 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Arista Networks reports no borrowings, so debt is counted as zero. Share counts and per-share figures for earlier years are restated for stock splits (4-for-1 and 4-for-1), so every year is on today's share basis. Return on capital for fiscal 2025 is blank: invested capital is small next to total assets (cash nearly matches equity and debt), so the ratio isn't meaningful.

What Arista Networks does

Arista Networks makes the network equipment and software that connect computers inside data centers, AI computing clusters, offices and campuses, and across wide-area links. Its products include high-speed Ethernet switches and routers, which run on its own operating system, Extensible Operating System (EOS). It also sells software for network management and monitoring, and support services.

It groups its offerings into three categories: Core (AI, cloud and data center networking), Cognitive Adjacencies (campus and routing), and Cognitive Networks (software and services). It sells to three groups of customers. They are large cloud companies, which it calls Cloud and AI Titans, specialty and AI providers, and enterprises such as banks and government agencies. It says that a small number of customers make up a large share of its revenue.

Arista says it competes with larger, well-established companies, and that its market has seen consolidation. It uses contract manufacturers to build its products and buys some components from a limited number of suppliers, including some sole-source ones.

Its biggest risks, as it describes them

A small number of large customers account for much of its revenue, so losing or delaying their purchases could hurt it.
Reliance on a limited number of suppliers, including some sole-source ones, for key components.
Tariffs and trade policies that remain uncertain.
Intense competition from larger, well-established companies, and from industry consolidation.
Revenue and margins that vary a lot from one period to the next.

From Arista Networks's annual report on Form 10-K, filed February 17, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 37.2% a year and net income 38.8% a year, as new shares raised the share count by 9% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, billions

Valuation

Two ways to value Arista Networks yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Arista Networks' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Arista Networks' cash from operations minus depreciation in fiscal 2025 (free cash flow before spending to grow: capital spending was 1.6 times depreciation, which holds its free cash flow down) of $4.3B, net cash of $10.7B at December 31, 2025 and 1,276 million diluted shares, from its filings. The scenarios are fitted to Arista Networks: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 27.1% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Communications Equipment); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2025: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Arista Networks's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 10% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $177.24
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Arista Networks' earnings per share of $3.17 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 55.9×, the middle of Arista Networks' own P/E today, its peers' median and its sector's median (Arista Networks' own P/E today) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Motorola Solutions, Ciena.

Earnings growth in the years ahead (% a year) Starts at Arista Networks' revenue growth over the last 3 years, 27.1% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $177.24
Value at this multiple, against the last close: —
Arista Networks' P/E at the last close: 55.9×

Company	Last close	Earnings per share	P/E today
CienaCIEN	$335.93	$4.48	75.0×
Arista NetworksANET	$177.24	$3.17	55.9×
Motorola SolutionsMSI	$485.62	$12.70	38.2×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	3,408	3,024	5,008	8,304	10,743
Debt incl. finance leases	0	0	0	0	0
Net debt (negative means net cash)	−3,408	−3,024	−5,008	−8,304	−10,743
Net debt to EBITDA	−3.5x	−1.9x	−2.1x	−2.8x	−2.7x
Debt to equity	0.0x	0.0x	0.0x	0.0x	0.0x
Interest coverage	—	—	—	—	—
Current ratio	4.3x	4.3x	4.4x	4.4x	3.0x
Quick ratio	3.8x	3.3x	3.4x	3.7x	2.6x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Arista Networks shares on the open market, and 8 insiders sold $1.5 billion, all of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 20, 2026	Kenneth DudaPresident and CTO, Director	Sold plan	43,333	$180.91	$7.8 million	Form 4
Oct 9, 2026	Jayshree UllalCEO and Chairperson, Director	Sold plan	130,553	$217.10	$28.3 million	Form 4
Oct 8, 2026	Jayshree UllalCEO and Chairperson, Director	Sold plan	27,990	$217.05	$6.1 million	Form 4
Oct 7, 2026	Jayshree UllalCEO and Chairperson, Director	Sold plan	96,992	$217.14	$21.1 million	Form 4
Oct 6, 2026	Jayshree UllalCEO and Chairperson, Director	Sold plan	460,374	$212.09	$97.6 million	Form 4
Oct 6, 2026	Chantelle Yvette BreithauptSenior Vice President, CFO	Sold plan	1,224	$215.00	$263,160	Form 4
Oct 1, 2026	Mark B TempletonDirector	Sold plan	5,000	$204.37	$1.0 million	Form 4
Sep 25, 2026	Jayshree UllalCEO and Chairperson, Director	Sold plan	62,622	$211.40	$13.2 million	Form 4
Sep 21, 2026	Kenneth DudaPresident and CTO, Director	Sold plan	43,333	$203.50	$8.8 million	Form 4
Sep 17, 2026	Andreas Bechtolsheim10% owner	Sold plan	300,000	$198.95	$59.7 million	Form 4
Sep 8, 2026	Mark B TempletonDirector	Sold plan	5,000	$197.16	$985,795	Form 4
Sep 1, 2026	Chantelle Yvette BreithauptSenior Vice President, CFO	Sold plan	612	$195.77	$119,811	Form 4

The latest 12 of 67 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Fail
Cash from operations exceeds net income	Fail	Pass	Pass
Debt fell relative to assets	Fail	Fail	Fail
Current ratio rose	Pass	Fail	Fail
Share count didn't rise	Fail	Fail	Pass
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Pass	Fail	Fail
F-score	6 of 9	4 of 9	4 of 9
Accruals ratio	0.6%	−7.1%	−5.1%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Arista Networks side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Arista Networks	FY25	28.6%	42.8%	47.2%	—	−2.7x	4
Motorola Solutions	FY25	8.0%	25.6%	22.0%	28.6%	2.3x	6	Compare
Ciena	FY25	18.8%	4.1%	13.9%	5.1%	0.8x	7	Compare
Viasat	FY26	2.7%	2.3%	32.2%	0.6%	3.3x	6	Compare
Nokia	FY25	3.5%	4.5%	7.4%	3.6%	−1.5x	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	1,129	1,646	2,151	2,411	2,318	2,948	4,381	5,860	7,003	9,006
Revenue growth	34.8%	45.8%	30.7%	12.1%	−3.9%	27.2%	48.6%	33.8%	19.5%	28.6%
Gross profit	723	1,062	1,373	1,544	1,482	1,881	2,676	3,630	4,491	5,769
Research and development	274	350	442	463	487	587	728	855	997	1,237
Operating income	243	470	273	806	700	925	1,527	2,257	2,945	3,856
Net income	184	423	328	860	635	841	1,352	2,087	2,852	3,511
Diluted EPS (US$)	0.16	0.33	0.25	0.67	0.50	0.66	1.07	1.65	2.23	2.75
Diluted shares (millions)	1,172	1,264	1,294	1,294	1,271	1,277	1,266	1,268	1,281	1,276
Cash flow
Cash from operations	174	632	503	963	735	1,016	493	2,034	3,708	4,372
Capital expenditure	21	15	24	16	15	65	45	34	32	120
Free cash flow	153	616	479	947	720	951	448	2,000	3,676	4,252
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	266	395	412	670	112	424	1,603
Acquisitions	0	0	97	1	227	1	145	2	0	300
Stock-based compensation	59	75	91	101	137	187	231	297	355	439
Balance sheet at fiscal year end
Cash and short-term investments	868	1,536	1,956	2,724	2,873	3,408	3,024	5,008	8,304	10,743
Debt incl. finance leases	0	40	38	0	0	0	0	0	0	0
Total assets	1,729	2,461	3,082	4,185	4,739	5,734	6,775	9,957	14,044	19,449
Total liabilities	621	799	939	1,291	1,419	1,756	1,890	2,738	4,049	7,078
Shareholders' equity	1,108	1,662	2,143	2,895	3,320	3,979	4,886	7,219	9,995	12,370
Margins and ratios
Gross margin	64.0%	64.5%	63.8%	64.1%	63.9%	63.8%	61.1%	62.0%	64.1%	64.1%
Operating margin	21.6%	28.6%	12.7%	33.4%	30.2%	31.4%	34.9%	38.5%	42.0%	42.8%
Net margin	16.3%	25.7%	15.2%	35.7%	27.4%	28.5%	30.9%	35.6%	40.7%	39.0%
Free cash flow margin	13.5%	37.4%	22.3%	39.3%	31.1%	32.3%	10.2%	34.1%	52.5%	47.2%
Return on capital	108.6%	—	—	—	—	—	107.4%	95.5%	131.8%	—
Return on equity	19.4%	30.6%	17.2%	34.1%	20.4%	23.0%	30.5%	34.5%	33.1%	31.4%
Return on assets	12.8%	20.2%	11.8%	23.7%	14.2%	16.1%	21.6%	24.9%	23.8%	21.0%
Net debt to EBITDA	−3.3x	−3.0x	−6.4x	−3.2x	−3.9x	−3.5x	−1.9x	−2.1x	−2.8x	−2.7x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Arista Networks' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Arista Networks.