| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 11 | 55.9x | 17.3x | Bottom tier | |
Growth | 90 | 32.6% | 7.1% | Top tier | |
Quality | 93 | 28.0% | 4.5% | Top tier | |
Safety | 87 | — | 2.6x | Top tier | |
Capital Return | 39 | 0.00% | 0.06% | Bottom tier | |
Momentum | 68 | 40.3% | -1.6% | Top tier | |
Sentiment | 45 | 16 | 3 | Around median |
The floor: what the company is worth if growth stopped today
85% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, 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 sells network switching and routing equipment, combining it with the EOS operating system to serve data centers, cloud computing, enterprise networks, and artificial intelligence. Its commercial advantage rests on offering an integrated hardware and software ecosystem, rather than standalone switches; it aims to reduce network downtime, improve accelerator utilization, and connect computing clusters across sites. Its products include Etherlink for AI networks and the 7800 platform for large-scale connectivity, alongside expansion into enterprise campus networking and routing.
In quarter 2 of fiscal year 2026 (ended 2026-06-30), revenue was approximately $3.0 billion, net income was $1.2 billion, and diluted earnings per share were $0.96, according to EL7 data. Gross margin was 62.9%, and operating margin, as calculated by EL7, was approximately 45.4% for the same period. International revenue in that quarter was $697.8 million, representing 23% of revenue, while management attributed demand to AI and enterprise customers; a reliable comparison of year-over-year revenue growth is unavailable because the line item's definition differs between the two periods.
For the last 12 months through 2026-06-30, revenue was $10.5 billion and net income was $4.0 billion, compared with operating cash flow of $5.3 billion according to EL7 data. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months was $5.0 billion. The central operational issue is the company's ability to convert AI networking demand into actual shipments while managing component shortages, component costs, and purchase commitments.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-11-03
Revenue for quarter 3 of fiscal year 2026 at the guidance level of $3.3 billion
Adjusted gross margin for quarter 3 of fiscal year 2026 at the 63% threshold
Revenue guidance for fiscal year 2026 of $12.6 billion
The median analyst price target is $238, within a range of $164 to $289 across 11 analysts, reflecting growth expectations and tending toward optimism by nature. The discounted cash flow model is $110, within a range of $93 to $133 and at a discount rate of 12.3%, measuring expected cash generation and tending toward conservatism by nature. The value based on the industry multiple is $90, within a range of $60 to $152, based on next year's earnings at a median multiple of 21.6 across 18 companies, valuing the company as its peers are valued; meanwhile, the no-growth value is $26, representing what remains when current after-tax operating profit is held constant forever at a discount rate of 12.3%. The cash flow and industry-multiple models are relatively close compared with the analyst target, with overlapping ranges, while the low no-growth value highlights how much the other values depend on continued expansion, and higher growth expectations explain the wide gap between analyst targets and the two methods.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Arista connects accelerators and computing clusters through Etherlink and the 7800 platform, using EOS to manage the network and improve operational continuity. On the 2026-08-04 call, the cumulative number of AI networking customers exceeded 100. Financial management set a revenue target for these networks of at least $3.5 billion for fiscal year 2026 (ending 2026-12-31), with expansion encompassing connectivity between sites.
Management explained on the 2026-08-04 call that Arista's participation is limited within Nvidia's integrated ecosystems that rely on NVLink, and that its opportunities are stronger in connectivity between systems and across sites. It mentioned its interest in AMD MI-series accelerators, Google TPU processors, and customers' internally designed accelerators. A news report published on 2026-10-09 reported the introduction of an open Ethernet portfolio for connecting accelerators, but the product's existence alone does not establish that customers are moving away from NVLink.
Automated analysis for informational purposes only — not investment advice.
For the last 12 months through 2026-06-30, operating cash flow according to EL7 data was approximately $5.3 billion against net income of $4.0 billion, representing cash conversion of 131%. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months was $5.0 billion. However, management warned on the 2026-08-04 call that rising inventory ahead of product deployment could affect the timing of operating cash flow between quarters.
Management set revenue for quarter 3 of fiscal year 2026 at approximately $3.3 billion. Guidance included adjusted gross margin of approximately 63%, adjusted operating margin between 48% and 49%, and adjusted diluted earnings per share between $1.06 and $1.08. The 2026-11-03 announcement represents a test of the company's ability to convert improving supplies into shipments while maintaining profitability.
During the 90 days through 2026-10-19, 7 insiders executed 236 open-market sales worth $791.2 million. Sales worth $791.2 million took place under prearranged 10b5-1 trading plans, compared with $0 outside them. No open-market purchases were recorded during the same period, and sales by the largest executive seller totaled $509.6 million.