The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 15 | 59.6x | 20.8x | Bottom tier | |
Growth | 89 | 30.6% | 6.1% | Top tier | |
Quality | 93 | 38.4% | 6.6% | Top tier | |
Safety | 92 | — | 0.7x | Top tier | |
Capital Return | 28 | — | 2.02% | Bottom tier | |
Momentum | 85 | 65.0% | 4.1% | Top tier | |
Sentiment | 68 | 16 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Arista Networks is a leading provider of cloud and AI networking solutions, specializing in high-speed routing and switching technologies for data centers and campus environments. The company generates revenue by selling high-performance networking hardware, such as the 7800R3 and 7800R4 switch series, coupled with its Extensible Operating System (EOS) and CloudVision management software. The company's solutions are essential for scaling AI workloads, serving hyperscalers and specialized AI companies seeking high-bandwidth, low-latency infrastructure for model training and inference.
During the first quarter of fiscal year 2026, the company achieved exceptional financial results, recording total revenue of $2.71 billion, a 35.1% year-over-year increase that exceeded its previous guidance. The company maintained a strong gross margin of 62.4% and an operating margin of 47.8%, resulting in a net income of $1.11 billion and diluted earnings per share of $0.87. Driven by growing demand in the AI and specialized service provider sectors, the company generated record operating cash flows of $1.69 billion, prompting management to confidently raise its full-year 2026 revenue growth forecast to 27.7%, targeting approximately $11.5 billion.
Arista Networks stock currently trades in the market with significant optimism reflecting its leadership position in AI networking infrastructure, holding a strong consensus buy recommendation from analysts. The average price target of $185.45 indicates Wall Street's confidence in the company's continued growth, with high-end targets reaching $200 reflecting positive expectations for AI sales. However, investors should monitor semiconductor sector volatility and insider selling pressure, which could impact the stock's trajectory toward achieving these price targets.
Figures in the text are as of 2026-07-15; the live price is shown at the top of the page.
The company recently unveiled the eXtended Pluggable Optics (XPO) technology during the Optical Fiber Communication Conference to address the physical power and space constraints in AI workloads. This new technology provides a record throughput of 12.8 Terabits per pluggable module and achieves an unprecedented density of 204.8 Terabits per OCP rack unit. Furthermore, XPO modules feature an integrated cold plate capable of cooling up to 400 watts per module, which is essential to support future 1.6T and 3.2T network speeds anticipated in 2027.
The company is currently navigating a severe industry-wide shortage of silicon and memory chips, resulting in lead times of up to 52 weeks for order deliveries. To ensure supply continuity for its customers, the company significantly increased its future purchase commitments to $8.9 billion by the end of the first quarter of 2026. Although management expects these elevated procurement costs to pressure gross margins, they remain confident enough to maintain their full-year gross margin guidance in the range of 62% to 64%.
The AI sector is the primary catalyst for the company's exceptional growth trajectory, prompting management to raise its fiscal year 2026 AI revenue target from $3.25 billion to $3.5 billion. This upward revision indicates that the company is on track to double its annual AI sales, driven by massive deployments of distributed networks. As a result, this robust demand was a key factor in the company raising its overall revenue growth forecast to 27.7%, targeting sales of approximately $11.5 billion for 2026.
Automated analysis for informational purposes only — not investment advice.
The company reported a total deferred revenue balance of $6.2 billion in the first quarter of 2026, representing a substantial increase driven primarily by product-related deferrals which grew by $643 million compared to the previous quarter. This rise is attributed to the complex nature of new AI network deployments and the rollout of the EtherLink product family, which require extensive testing and longer customer acceptance cycles. Management noted that the qualification period for these massive AI clusters has extended from the historical norm of two to four quarters to between six and eight fiscal quarters.