Arista Networks Inc

Arista Networks Inc

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Market Cap$200.8B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Arista Networks IncArista Networks Inc53.9-28%24.90.4

Earnings Call Q1 2026

May 5, 2026 - AI Summary

Q1 financial performance beat expectations; strong growth - Total revenue $2.71B, +35.1% YoY and above guidance (company referenced guide of ~$2.6B). - Gross margin: 62.4% (within the 62%–63% guidance band), but down sequentially due to less favorable enterprise mix. - Operating income $1.29B (47.8% margin); net income $1.11B (40.9% margin); EPS $0.87 (+31.8% YoY). - Cash from operations ~$1.69B (described as Arista’s strongest ever). DSOs 64 days (improved from 70). - Deferred revenue: $6.2B (up from $5.37B), supporting forward demand visibility.
Guidance raised for 2026 (top-line and AI), but supply constraints remain a core risk - 2026 revenue outlook raised to +27.7% targeting ~$11.5B (previously lower). - AI fabric target raised to $3.5B (from $3.25B), i.e., more than doubling AI sales annually (company framing). - Gross margin guidance maintained 62%–64% (explicitly *inclusive* of mix and anticipated supply-chain cost increases). - Operating margin outlook ~46%; tax rate ~21.5%. - Q2 2026 guidance: revenue ~$2.8B; gross margin 62%–63%; operating margin 46%–47%; EPS ~$0.88 on ~1.27B diluted shares.
Most important operational “bad”: industry-wide shortages (wafers/silicon/memory/optics) constrain shipments and pressure gross margin - CEO said demand is outstripping supply in 2026; supply-chain issues are now viewed as “1–2 years” rather than short-lived. - Company is leaning into multi-year purchase commitments and paying higher costs to preserve supply continuity. - Result: expected gross margin pressure due to mix/trade-offs from ensuring supply (even though margins are still guided within range). - Working capital moving points investors should note: - Inventory $2.38B (up from $2.25B) = deliberate mix investment to fulfill demand. - Purchase commitments $8.9B (up from $6.8B), indicating continued heavy component purchasing ahead of deployments.

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$182.27

Target Price by Analysts

4.5% upsideArista Networks Target Price DetailsTarget Price
$74.83

Current Fair Value

57.1% downside

Overvalued by 57.1% based on the discounted cash flow analysis.

Share Statistics

Market cap$200.80 Billion
Enterprise Value$202.92 Billion
Dividend Yield$- (-)
Earnings per Share$2.79
Beta1.67
Outstanding Shares1,257,700,000

Return

Return on Equity27.59%ROE
Return on Assets17.18%
Return on Invested Capital28.80%

Valuation & Multiples

P/E Ratio53.91P/E Ratio
PEG209.81PEG
Price to Sales24.91Price to Sales
Price to Book Ratio17.44Price to Book Ratio
Enterprise Value to Revenue20.9
Enterprise Value to EBIT46.67
Enterprise Value to Net Income54
Total Debt to Enterprise0.02
Debt to Equity0.36Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 5, 2026
EPS Estimate
$0.81
Average shareholder expectation
Revenue Estimate
$2.62 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 4, 2026
EPS Estimate
$0.89
Average shareholder expectation
Revenue Estimate
$2.83 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio1.1793▲ 17.41%
Total Calls9,248,284▼ 29.83%
Total Puts10,906,647▼ 17.67%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %69.57%▲ 0.88%
Total Invested$107.30B▼ 5.25%
Investors Holding2,081▲ 17.00%

ESG Score

No data

About Arista Networks Inc

2,300 employees
CEO: Jayshree Ullal

Arista Networks is an industry leader in software-driven cloud networking solutions for large data center and campus environments. Arista's award-winning platforms deliver availability, agility, automation analytics and security through ...

Relevant Senate Committees

Joint Committee on Taxation

Provides critical analysis and 'scoring' for all tax legislation, directly influencing corporate tax structures and credits that significantly impact Arista's financials.

Finance

Controls taxation and trade policy. Tax laws (corporate rates, R&D credits) directly impact Arista's profitability and capital decisions, while trade policy affects its global supply chain and markets.

Appropriations

Directly allocates federal discretionary spending, which determines the budgets available for government IT infrastructure and contracts relevant to Arista's solutions.

Judiciary

Oversees antitrust, intellectual property, and data privacy laws, all critically important to the technology sector, impacting competitive landscape, product innovation, and data handling for Arista.

Commerce, Science, and Transportation

Has broad jurisdiction over 'Big Tech,' telecommunications, and internet regulations (e.g., privacy, net neutrality), directly impacting Arista's market, customers, and operational environment.