| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 10 | 62.6x | 17.8x | Bottom tier | |
Growth | 90 | 32.6% | 7.1% | Top tier | |
Quality | 93 | 28.0% | 4.5% | Top tier | |
Safety | 76 | — | 2.6x | Top tier | |
Capital Return | 54 | — | 2.12% | Around median | |
Momentum | 84 | 32.1% | 2.9% | Top tier | |
Sentiment | 63 | 16 | 3 | Around median |
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 develops networking platforms for data centers, cloud computing, enterprise networks, and AI infrastructure, combining Etherlink switches and the 7800 and 7060XE7 platforms with the EOS operating system and diagnostic and analytics software. The company generates revenue from selling switching and routing equipment and integrated networking solutions, while expanding into Scale-Out and Scale-Across AI networking, enterprise campus networking, and routing. Its operational advantage is based on delivering hardware and software as a unified system that supports deterministic routing, load balancing, and uninterrupted upgrades.
In Q2 fiscal 2026, revenue exceeded $3.0 billion, up 37.7% year over year and above the company’s guidance of $2.8 billion. Gross margin was 63.4%, compared with 65.6% in Q2 fiscal 2025 and 62.4% in Q1 fiscal 2026, while operating income reached $1.5 billion at a margin of 49.9%. Net income reached $1.3 billion, or 42.9% of revenue, and diluted earnings per share were $1.02, up 39.7% from $0.73 a year earlier.
Growth in Q2 fiscal 2026 was driven by AI and enterprise customers, while international revenue reached $697.8 million, equivalent to 23% of the total, compared with 15.5% in Q1 fiscal 2026. Arista ended the quarter with $13.3 billion in cash and marketable securities, $2.5 billion in inventory, and $6.9 billion in deferred revenue. Operating cash flow was $1.1 billion, while purchase commitments increased to $9.7 billion to support new products and AI network deployments.
The analyst consensus is “Buy,” with an average target of $225.25 and a wide range between $164 and $289; the average is only approximately 4.8% above the top of the 52-week range of $214.89, while the bottom of the range is $114.52. The high target reflects expectations for continued AI growth, but the forward earnings multiple near 50 times and the wide target range reveal the valuation’s sensitivity to margin, supply, and customer concentration risks.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Arista’s revenue exceeded $3.0 billion in Q2 fiscal 2026, growing 37.7% year over year, driven by AI and enterprise customers. The company generated operating income of $1.5 billion at a margin of 49.9% and net income of $1.3 billion. Diluted earnings per share were $1.02, up 39.7% from $0.73 in Q2 fiscal 2025.
Arista is targeting at least $3.5 billion in AI networking revenue in fiscal 2026 after Etherlink surpassed 100 cumulative customers. Management expects Scale-Across applications to contribute approximately $1.2 billion, or around 30% of a total AI target it cited at $3.6 billion. The company estimated the Scale-Across market at approximately $3 billion to $4 billion in 2026, with expectations that it will reach $15–20 billion in 2030.
On August 4, 2026, the company raised its fiscal 2026 revenue forecast to approximately $12.6 billion, representing annual growth of 40%. It is targeting a gross margin between 62% and 64% and an operating margin between 48% and 49% during fiscal 2026. For Q3 fiscal 2026, it is targeting revenue of approximately $3.3 billion and diluted earnings per share between $1.06 and $1.08.
Automated analysis for informational purposes only — not investment advice.
Arista increased its multi-year purchase commitments to $9.7 billion at the end of Q2 fiscal 2026, compared with approximately $3.6 billion a year earlier. It secured its memory requirements for 2026 and extended visibility into 2027 across DDR4, DDR5, and NAND, while qualifying additional suppliers and increasing production capacity. It also now has three contract manufacturing plants and three distribution facilities spread across the United States, Asia, and Mexico, but it still expects industry supply constraints to persist through 2028.
Key risks include revenue concentration, as management confirmed the importance of Microsoft and Meta and expected one customer, and possibly two customers, each to represent 10% or more of revenue. Gross margin also declined to 63.4% in Q2 fiscal 2026 from 65.6% a year earlier, amid persistently higher memory and silicon costs. Additional risks include competition from white-box solutions and NVLink, purchase commitments of $9.7 billion, and a forward earnings multiple of approximately 50 times.
EOS unifies the operation of Arista networks from Scale-Out architecture to Scale-Across routing, allowing consistent policies and software to be applied across the hardware. SSU technology enables switch software upgrades without interruption, while MRC distributes flows across multiple paths to reduce the impact of hash collisions. SRv6 uses real-time congestion signals to route packets away from hot spots, capabilities designed to increase AI accelerator utilization and reduce downtime.
