Arista Networks, Inc. (ANET)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett investor, I see a high-quality but richly priced business. Arista sells data-center and AI networking solutions built around its EOS software, and the filed numbers show real operating leverage: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.0B and net income $1.2B, versus $2.2B and $888.8M in fiscal Q2 2025. Latest quarterly net margin was 39.95%, FairStock's ROE is 31.48%, ROCE 14.12%, and debt/equity is 0.01. Free cash flow is $5.2B, and the Altman Z-score of 16.30 indicates very low balance-sheet risk. That combination suggests a durable franchise, likely tied to switching costs and the EOS ecosystem, though I would not confuse a great business with a bargain. At the 2026-10-26 close of $177.24, FairStock's P/E is 56.27, P/B 15.11, EV/EBITDA 46.36, FCF yield 2.3%, and PEG 1.50. The Graham Number is $28.83, leaving a negative margin of safety of -497.88%. FairStock calls it a FAST GROWER—profit up 40.8% a year over five years and revenue up 31.2%—but the Piotroski F-score is only 6/9 and the price already discounts much continued success. My conclusion: excellent business, strong growth and balance sheet, but little Graham-style cushion.

In plain English: Arista Networks makes networking hardware and software for data centers, cloud and AI systems. The business looks strong: sales and profits are growing quickly, profit margins are high, and it carries almost no debt. At $177.24, the shares look expensive compared with the company's current profits and accounting value, so the price depends heavily on future growth continuing.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer