Arista Networks (ANET) — Company Research

Last Updated: 2 August 2026

Arista Networks sells Ethernet switching into the largest data centres in the world, and has ridden the AI build-out from $2.9bn of revenue in 2021 to $9.0bn in 2025. It carries no debt, holds over $12bn of cash and marketable securities, and converts roughly 47% of every dollar of sales into operating profit on a non-GAAP basis. It also draws 42% of its revenue from two customers and now faces Nvidia at parity in its core market. This report sets out what the company reported, what management has guided, and what the raw valuation numbers look like as of August 2026. It contains no analyst opinions, price targets or ratings. Note that Q2 2026 results are due after the US close on 4 August 2026 and are not reflected below.

1. Company Snapshot

Field	Value
Legal name	Arista Networks, Inc.
Ticker / exchange	ANET / New York Stock Exchange
Headquarters	5453 Great America Parkway, Santa Clara, California 95054, USA
Sector / industry	Technology — computer communications equipment; data centre, AI and campus Ethernet networking
CEO / Leadership	Jayshree Ullal — Chairperson, President and Chief Executive Officer. Chantelle Breithaupt — SVP and Chief Financial Officer. Todd Nightingale — President and Chief Operating Officer. Kenneth Duda — President and Chief Technology Officer, co-founder. Andy Bechtolsheim — Chief Architect and holder of more than 10% of the company
Employees	Approximately 5,115 full-time employees worldwide at 31 December 2025. None unionised
Revenue (FY2025)	$9,005.7m, up 28.6% year on year
Net income (FY2025)	$3,511.4m GAAP; $3,806.0m non-GAAP
Share price	$180.35 at the close on 31 July 2026
Market cap	Approximately $227.1bn (2 August 2026)
Dividend	None. The 10-K states the company has never declared nor paid any cash dividend and does not anticipate doing so in the foreseeable future
Shares outstanding	1,259.2m, split-adjusted, at 31 March 2026
Founded / IPO	Founded 2004 as Arastra, Inc. by Andy Bechtolsheim, David Cheriton and Kenneth Duda; renamed Arista Networks in October 2008; IPO on the NYSE in June 2014
Stock split	Four-for-one forward split, charter amendment filed 3 December 2024, split-adjusted trading from 4 December 2024. All per-share figures in this report are on that split-adjusted basis

2. Bull and Bear Case

Bull Case

• AI networking is compounding and guidance keeps rising: FY2026 revenue guidance was raised on 5 May 2026 to approximately $11.5bn, implying 27.7% growth, from approximately $11.25bn, and the FY2026 AI fabrics target was raised from $3.25bn to $3.5bn — roughly doubling AI-related revenue year on year. Q1 2026 revenue grew 35.1%.
• EOS is a genuine architectural moat: a single Linux-based software image runs unmodified across the whole portfolio, from 1G campus access switches to 1.6T AI spines, alongside one data lake in NetDL and one management plane in CloudVision. That delivers in-service upgrades, streaming telemetry and no retraining, and it is the reason the 2026 Net Promoter Score came in at 89 with 94% of customers strongly positive.
• The balance sheet is pristine: zero debt of any kind in every year from FY2021 to FY2025, against $12,353.2m of cash and marketable securities at 31 March 2026 and $13,487.1m of shareholders' equity. Enterprise value is therefore below market capitalisation.
• Cash conversion is exceptional: FY2025 operating cash flow of $4,371.9m against capital expenditure of only $119.5m produced $4,252.4m of free cash flow on $9.0bn of revenue, with GAAP operating margin of 42.8% and non-GAAP operating margin of 48.2%. Q1 2026 alone generated $1,693.5m of operating cash flow.
• Deferred revenue has nearly doubled: total deferred revenue rose from $2,791.4m to $5,372.4m during FY2025 and again to $6,198.7m at 31 March 2026, equal to roughly 64% of the entire FY2025 revenue base — a large, contracted forward book.

Bear Case

• Customer concentration is severe and getting worse: the 10-K discloses one end customer at 26% of FY2025 revenue and another at 16%, so 42% of the business sits with two buyers. The larger of the two has risen from 18% in FY2023 to 20% in FY2024 to 26% in FY2025. Two resellers also account for 52% of accounts receivable.
• Nvidia has caught up in Arista's own market: Spectrum-X went from under 4% to roughly 21.5% of the data centre Ethernet switch market in two years, at or above Arista's reported share, because it is bundled with GPUs into an integrated AI-factory package. Nvidia's data centre networking revenue hit a record $14.8bn in its most recent quarter, up 199% year on year.
• Management is guiding gross margin down: non-GAAP gross margin slid from 65.6% in Q2 2025 to 65.2% in Q3 to 63.4% in Q4 2025, and FY2026 guidance of 62–64% sits below the FY2025 actual of 64.6%, explicitly because of customer mix and rising memory and silicon costs.
• The multiple leaves no room: roughly 61x trailing GAAP earnings, 23x trailing sales, 51x EV/EBITDA and 43x trailing free cash flow, against a 52-week range of $114.52 to $189.82 — a 66% peak-to-trough spread inside twelve months.
• Insiders sell relentlessly and never buy: not a single open-market purchase by any insider in 2026. Andy Bechtolsheim has sold 200,000 to 300,000 shares roughly weekly under a plan adopted 20 February 2026, and Jayshree Ullal sold over 1.3m shares across April and July 2026. Against that sits $6.8bn of non-cancellable purchase commitments on a $9.0bn revenue base.

3. Business Segments

Arista reports a single operating segment. It does, however, disclose several revenue splits, and the FY2025 10-K introduced new customer and product category labels replacing the previous groupings.

Segment	% of revenue	What it is
Product — FY2025 revenue $7,576.9m, up 28.8%	84.1%	Ethernet switching and routing hardware. The 7000-series data centre spine and leaf platforms, the 7800R4 and 7700R4 AI platforms, 7060 and 7050 X-series fixed switches, 720 and 750 campus switches, and 7130 low-latency platforms for electronic trading. Software licences for EOS features are embedded in this line
Service and subscription — FY2025 revenue $1,428.8m, up 27.7%	15.9%	Principally Post Contract Support contracts sold alongside product and renewed thereafter, plus CloudVision subscriptions and network security offerings. Arista's own "Cognitive Networks" software and services category is approximately 17% of total FY2025 revenue
Americas — FY2025 revenue $7,122.1m	79.1%	The home market, down from 81.8% of revenue in FY2024 as international mix improved. Europe, Middle East and Africa contributed $1,070.3m or 11.9%, and Asia-Pacific $813.3m or 9.0%. Non-Americas revenue rose from 18.2% to 20.9% of the total during FY2025
Cloud and AI Titans — approximately $4,323m implied	48%	The hyperscale and AI build-out customers. The remaining customer groupings are Enterprise at approximately 32% of revenue and AI and Specialty Providers at approximately 20%. By product category the split is approximately 65% Core covering AI, cloud and data centre networking, 18% Cognitive Adjacencies covering campus and routing, and 17% software and services

Customer concentration is disclosed but not named. The 10-K states that sales to one end customer represented 26%, 20% and 18% of total revenue in FY2025, FY2024 and FY2023 respectively, and sales to another end customer represented 16%, 15% and 21% over the same years. Third-party analysis attributes the larger to Microsoft and the smaller to Meta Platforms; Arista itself does not name either.

4. Business Model and Moat

How it makes money. Roughly 84% of revenue is hardware and 16% is service and subscription, but the split understates the software content: EOS feature licences and CloudVision subscriptions sit inside both lines, and Arista's own software and services category is approximately 17% of revenue. Gross margin has run structurally between 62% and 66%, with FY2025 GAAP gross margin at 64.1% and non-GAAP at 64.6%. Very little capital is required — FY2025 capital expenditure was $119.5m against $4,371.9m of operating cash flow.

The single-image architecture. Arista's structural advantage is EOS, the Extensible Operating System. One modular Linux-based software image runs unmodified across the entire product range. The 10-K frames it as "a single operating system (EOS), a single data lake (NetDL), and a single management solution (CloudVision)... This strategy allows us to address a broad set of needs from client to cloud while maintaining feature consistency across our entire product portfolio." Competitors, Cisco most notably, historically carried multiple operating system code bases. The practical consequences are in-service software upgrades, real-time streaming telemetry, no forklift retraining and a low operational cost of ownership — which is what keeps large accounts from switching.

The merchant silicon trade. Arista buys switching ASICs rather than designing them, and the 10-K is explicit that the company is "primarily reliant upon our predominant merchant silicon vendor, Broadcom, for our switching chips" — Tomahawk for high-radix leaf and spine, Jericho for deep-buffer routing. This is simultaneously a moat and a dependency. Arista rides Broadcom's silicon cadence with a far lower research burden than a vertically integrated competitor and reaches market fast on each new SerDes generation, but Broadcom also sells the same chips into white-box vendors that undercut Arista, and there is no written supply guarantee.

Deferred revenue as both moat and risk. Total deferred revenue rose 92.5% during FY2025 to $5,372.4m and reached $6,198.7m at 31 March 2026, contributing $2,452.0m of FY2025 operating cash flow and $826.2m of Q1 2026 operating cash flow. Part is multi-year support, which is a genuine annuity. Part is product revenue deferred pending customer acceptance on new AI platforms, and the 10-K explicitly flags increased volatility and magnitude of product deferred revenue balances as a source of revenue variability. It is a forward book and a timing risk in the same number.

For live price action on ANET and its peer group, see the ChartsView Live Charts page.

5. Financial Health

All figures below are taken from Arista Networks quarterly earnings releases filed as exhibits to Form 8-K, the FY2025 Form 10-K filed on 17 February 2026, and SEC XBRL company facts for CIK 0001596532. All per-share figures are on a four-for-one split-adjusted basis.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	$2,948.0m	+27.2%	$0.66†	$0.72†	Nil	Nil
FY2022	$4,381.3m	+48.6%	$1.07	$1.15†	Nil	Nil
FY2023	$5,860.2m	+33.8%	$1.65	$1.73	Nil	Nil
FY2024	$7,003.1m	+19.5%	$2.23	$2.27‡	Nil	Nil
FY2025	$9,005.7m	+28.6%	$2.75	$2.98	Nil	Nil

† Arista never published split-adjusted per-share figures for FY2021 or FY2022 non-GAAP, so these are derived by dividing the as-reported pre-split amounts by four. FY2023 onward are company-published split-adjusted figures.

‡ Effective Q4 2025 Arista changed how it calculates the income tax effect of non-GAAP adjustments and recast prior periods. On the recast basis FY2024 non-GAAP EPS becomes $2.32 rather than the $2.27 originally reported.

On long-term debt: Arista is completely debt-free and has been throughout the period. The FY2025 consolidated balance sheet carries accounts payable of $651.7m, accrued liabilities of $475.4m, current deferred revenue of $4,002.6m, other current liabilities of $246.8m, non-current deferred revenue of $1,369.8m and other long-term liabilities of $331.8m — total liabilities of $7,078.1m with no debt line item of any kind. SEC XBRL returns no data at all for long-term debt, current debt or short-term borrowing tags in any year, because the company has never had any to tag. The only debt-like obligations are operating lease liabilities, tagged at $22.1m current and $37.5m non-current in the FY2024 filing.

Supporting detail: GAAP net income rose from $840.9m in FY2021 to $3,511.4m in FY2025. Diluted weighted-average shares were broadly flat across the period at 1,276.9m in FY2021 and 1,275.7m in FY2025, so growth has been almost entirely organic rather than diluted away.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q1 2026 (to 31 Mar 2026, reported 5 May 2026)	$2,709.0m, +35.1%	$0.87	$0.80
Q4 2025 (to 31 Dec 2025, reported 12 Feb 2026)	$2,487.8m, +28.9%	$0.82	$0.75
Q3 2025 (to 30 Sep 2025, reported 4 Nov 2025)	$2,308.3m, +27.5%	$0.75	$0.67
Q2 2025 (to 30 Jun 2025, reported 5 Aug 2025)	$2,204.8m	$0.73	$0.70
FY2025 total	$9,005.7m, +28.6%	$2.98	$2.75

Q2 2026 results, covering the quarter ended 30 June 2026, are scheduled for release after the US market close on 4 August 2026 and are therefore not included above. Management guided that quarter on 5 May 2026 to approximately $2.8bn of revenue, a non-GAAP operating margin of 46–47% and non-GAAP diluted EPS of approximately $0.88.

Cash generation, FY2025: operating cash flow of $4,371.9m against $3,708.2m in FY2024; purchases of property, equipment and intangible assets of $119.5m against $32.0m; depreciation and amortisation of $72.6m; stock-based compensation of $439.2m. GAAP operating income was $3,856.1m at a 42.8% margin and non-GAAP operating income $4,337.0m at a 48.2% margin. Share repurchases totalled $1,603.1m, and $300.0m of cash went to the VeloCloud acquisition. Q1 2026 produced $1,693.5m of operating cash flow with $54.5m of capital expenditure and no buybacks at all.

Balance sheet at 31 March 2026: cash and cash equivalents of $2,789.5m plus marketable securities of $9,563.7m for total liquid assets of $12,353.2m, against zero debt. Total assets $21,656.5m, total liabilities $8,169.4m, shareholders' equity $13,487.1m, inventories $2,380.0m and accounts receivable $1,923.8m. Arista classifies its entire securities portfolio as current, so there is no separate long-term investments line to double-count. Off balance sheet, non-cancellable purchase commitments stood at $6.8bn at 31 December 2025, of which $6.3bn have confirmed receipt dates within twelve months.

6. Valuation Metrics

Raw metrics, August 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	Approximately $227.1bn at the close of 31 July 2026, on 1,259.17m split-adjusted shares at $180.35
Enterprise value	Approximately $214.7bn (market cap $227.1bn + total debt $0m − cash and marketable securities $12,353.2m per the 31 March 2026 balance sheet). Arista is net cash, so enterprise value sits below market capitalisation
Trailing P/E (GAAP)	Approximately 61x on trailing twelve month GAAP net income of $3,720.5m ($0.70 + $0.67 + $0.75 + $0.80 = $2.92 of trailing EPS). A third-party screen shows 62.2x on its own trailing basis
P/E (forward)	Approximately 40x. Arista does not guide to a full-year EPS figure, so this is a third-party consensus-based calculation rather than a company-guided number; the FY2026 revenue guide of approximately $11.5bn and a 46–47% non-GAAP operating margin are the disclosed inputs
P/S (TTM)	Approximately 23.4x on trailing twelve month revenue of $9,709.9m ($2,204.8m + $2,308.3m + $2,487.8m + $2,709.0m). On FY2025 revenue of $9,005.7m the multiple is approximately 25.2x
EV/EBITDA (TTM)	Approximately 51x (EV approximately $214.7bn / EBITDA approximately $4.24bn; EBITDA = trailing twelve month GAAP operating income of $4,155.1m + trailing D&A of $82.1m). On FY2025 alone, operating income $3,856.1m + D&A $72.6m = $3,928.7m gives approximately 55x. Note this is GAAP and therefore after $439.2m of FY2025 stock-based compensation
P/FCF	Approximately 43x (market cap approximately $227.1bn / trailing twelve month free cash flow approximately $5.28bn; FCF = trailing operating cash flow $5,423.7m − trailing capital expenditure $145.6m). On FY2025 alone, $4,371.9m − $119.5m = $4,252.4m gives approximately 53x
52-week high	$189.82, set on 9 July 2026. The all-time closing high was $186.96 on 10 July 2026
52-week low	$114.52, set on 21 November 2025
Short interest (% of float)	Approximately 2.0% of float, 21.3m shares, per the July 2026 settlement period
Days to cover	Approximately 2.1 days
Price/book	Approximately 16.8x on shareholders' equity of $13,487.1m at 31 March 2026
Dividend yield	Nil. Arista has never paid a dividend

7. What Are They Building

Research and development spending reached $1,237.3m in FY2025, up from $996.7m in FY2024, though as a share of revenue it has fallen steadily from 19.9% in FY2021 to 13.7% in FY2025 as the top line outgrew the engineering base. Q1 2026 R&D was $343.7m, up 29.0% year on year and equal to 12.7% of revenue.

The 1.6T generation. On 9 June 2026 Arista launched the 7060XE7 Series, extending the Etherlink AI portfolio from 800G to 1.6T for rack-scale AI. The line spans air-cooled 4RU configurations with 64 ports of 1.6T and a liquid-cooled 2OU variant using 224G SerDes and open rack DC power, delivering 100 Tbps of aggregate throughput. Linear pluggable optics support cuts interconnect power by roughly 60%. First systems are available in Q4 2026 with additional models in Q1 2027, and Meta, Microsoft and Oracle are named as validated deployments.

Optics density. On 12 March 2026 Arista announced a multi-source agreement for XPO, a 12.8 Tbps liquid-cooled optics module supporting 204.8 Tbps of front-panel density per open compute rack unit — a fourfold improvement on 1600G-OSFP optics that cuts networking racks by up to 75% and floor space by up to 44%.

The AI fabric architecture. Etherlink spans the 7700R4 Distributed Etherlink Switch, the 7800R4 modular AI spine and the 7060X and 7060XE fixed platforms. The technical differentiators are virtual output queuing to eliminate head-of-line blocking, deep buffers to absorb AI microbursts without triggering priority flow control storms, and cluster load balancing. Arista is a founding participant in the Ultra Ethernet Consortium and in ESUN, the Ethernet for Scale-Up Networks workstream unveiled at the OCP Global Summit in October 2025. Management has indicated scale-up is a 2027 revenue opportunity rather than a 2026 one.

Software and autonomous operations. CloudVision Universal Network Observability adds AI-workload-centric job telemetry, and Arista AVA, the Autonomous Virtual Assist, gained agentic capabilities in Q4 2025 for multi-domain event correlation, continuous monitoring and troubleshooting. Arista has also announced AI agents built on open standards such as MCP running over EOS and NetDL.

Campus and the VeloCloud acquisition. Arista completed the purchase of the VeloCloud SD-WAN business from Broadcom on 30 June 2025 for $300.0m in cash, allocated as $268.4m of intangibles, $148.0m of goodwill and $116.4m of net tangible liabilities assumed. On 21 July 2026 it launched AI-driven Edge Threat Management for VeloCloud, collapsing multiple branch boxes into a single secure SD-WAN edge platform. The FY2026 campus revenue goal has been reiterated at $1.25bn, and on 20 May 2026 Arista was named a Leader in the 2026 Gartner Magic Quadrant for Enterprise Wired and Wireless LAN, an upgrade from the Visionaries quadrant in the 2025 edition.

8. Competitive Landscape

Market capitalisations below were re-checked live on 2 August 2026, which matters in this sector — cached figures from earlier in the year are badly stale given the pace of the AI re-rating. Note that Juniper Networks no longer trades independently following its acquisition by HPE.

Peer	Market cap (August 2026)	Key 2025/2026 metric
NVIDIA Corporation (NASDAQ: NVDA)	Approximately $4.86tn at $200.75	Data centre networking revenue of a record $14.8bn in the most recent quarter, up 199% year on year and 35% sequentially — an annualised run rate near $60bn. Spectrum-X reached approximately 21.5% of the data centre Ethernet switch market in Q1 2026, up from under 4% two years earlier
Broadcom Inc. (NASDAQ: AVGO)	Approximately $1.85tn at $389.28	Arista's predominant merchant silicon supplier and simultaneously a competitor via Tomahawk 6 sold into white-box vendors. Guided AI revenue to roughly double year on year to $8.2bn in Q1 FY2026, with a stated line of sight to more than $100bn of AI chip revenue in FY2027
Cisco Systems, Inc. (NASDAQ: CSCO)	Approximately $457.2bn at $115.99	Raised FY2026 revenue guidance to $62.8–63.0bn and expects approximately $9bn of AI infrastructure orders from hyperscalers in FY2026. Q3 FY2026 revenue was a record $15.8bn with networking product revenue up 25%
Hewlett Packard Enterprise (NYSE: HPE)	Approximately $63.4bn at $47.90	HPE Networking, which now includes the acquired Juniper business, generated $2.7bn of revenue in Q1 FY2026, up 151.5% year on year at a 23.7% operating margin. Launched the HPE Juniper QFX5250 on Broadcom Tomahawk 6
Ciena Corporation (NYSE: CIEN)	Approximately $53.4bn at $377.05	Trailing P/E of 124.9x and forward P/E of 39.1x, with a 52-week range of $84.41 to $637.51 — an illustration of how violently AI-optics valuations have moved in both directions
Celestica Inc. (NYSE: CLS)	Approximately $38.1bn at $331.44	The white-box and original design manufacturer proxy, on a trailing P/E of 36.4x and forward P/E of 16.7x, with a 52-week range of $173.23 to $474.03

9. Insider Activity

Chairperson, President and Chief Executive Officer Jayshree Ullal has been a consistent seller through 2026, as have co-founder and Chief Architect Andy Bechtolsheim and President and Chief Technology Officer Kenneth Duda. There have been no open-market insider purchases of Arista stock in 2026 — every open-market transaction on record is a sale. Every large sale below was executed under a Rule 10b5-1 plan according to the Form 4 footnotes.

Name	Date	Type	Shares	Price	Value	Plan Type
Kenneth Duda, President and CTO	20 Jul 2026	Option exercise and sale	43,333 sold	$170.51 weighted average	$7,388,872	Rule 10b5-1
Andy Bechtolsheim, Chief Architect	14 Jul 2026	Sale	300,000	$180.77 weighted average	$54,231,399	Rule 10b5-1, plan adopted 20 Feb 2026
Jayshree Ullal, Chairperson and CEO	10 Jul 2026	Sale	234,578	$187.18 weighted average	$43,907,278	Rule 10b5-1, plan entered 14 Nov 2025
Jayshree Ullal, Chairperson and CEO	9 Jul 2026	Sale	242,422	$188.17	$45,616,220	Rule 10b5-1
Andy Bechtolsheim, Chief Architect	2 Jul 2026	Sale	240,000	$162.67	$39,040,876	Rule 10b5-1
Charles H. Giancarlo, Director	1 Jul 2026	Sale	8,000	$167.06	$1,336,474	Recurring monthly pattern, also 1 Jun 2026 and 1 May 2026
Jayshree Ullal, Chairperson and CEO	22 Apr 2026	Sale	428,000	$177.44	$75,944,314	Rule 10b5-1
Chantelle Breithaupt, SVP and CFO	26 May 2026	Sale	2,448	$157.00	$384,336	Rule 10b5-1

Context matters on the size of these sales. Post-sale holdings remain very large: Bechtolsheim held 181,854,896 shares, roughly 14.4% of the company, after his 14 July disposal, and Ullal held 27,493,341 shares after 10 July, with a substantial portion of her sold shares held in family trusts for which she disclaims beneficial ownership. The pattern is programmatic rather than discretionary. Separately, the company repurchased $1,603.1m of stock during FY2025 but made no repurchases at all in Q1 2026, leaving approximately $817.9m of authorisation outstanding at 31 December 2025.

10. Key Risks

• Customer concentration: 42% of FY2025 revenue came from two end customers, at 26% and 16%. The larger has climbed from 18% in FY2023 to 26% in FY2025, so the dependency is deepening rather than diversifying. The 10-K cites unpredictability in the timing of orders from high-volume customers, including reductions or shifts in their capital expenditure budgets. Two resellers also represent 52% of accounts receivable.
• Nvidia competition in the core market: Spectrum-X moved from under 4% to roughly 21.5% of data centre Ethernet switching in two years, matching or exceeding Arista's own share, because it ships bundled with GPUs as an integrated AI-factory package. Nvidia also owns NVLink for scale-up interconnect, a domain Arista has said it will not address until 2027.
• AI capex cyclicality, flagged by Arista itself: the 10-K states that markets for its products, "particularly the AI Ethernet segment, are characterized by rapid evolution and volatility" and may experience "prolonged slowdowns, cyclical contractions, or the correction of speculative bubbles." It adds that customers "may overestimate demand for their AI build outs and cancel, delay, reduce or otherwise modify their purchase commitments with little or no notice to us."
• Gross margin compression: non-GAAP gross margin fell from 65.6% in Q2 2025 to 63.4% in Q4 2025, and FY2026 guidance of 62–64% sits below the FY2025 actual, explicitly inclusive of mix and anticipated supply chain cost increases for memory and silicon. Large customers also receive more favourable terms including pricing discounts, bundled upgrades and extended warranties.
• Supply chain and off-balance-sheet purchase commitments: $6.8bn of non-cancellable, non-returnable purchase commitments sit off balance sheet against a $9.0bn revenue base, with $6.3bn due within twelve months, alongside $2.25bn of inventory. Management has said supply constraints are expected to persist one to two years rather than a few quarters across wafers, silicon, CPUs, optics and memory. If demand forecasts prove wrong, the write-down exposure is substantial.
• Sole-source silicon dependency: the 10-K states Arista is "primarily reliant upon our predominant merchant silicon vendor, Broadcom, for our switching chips" and that neither Arista nor its contract manufacturers hold a written agreement guaranteeing supply of key components. Broadcom simultaneously sells the same silicon into white-box vendors that compete with Arista on price.
• Tariffs and export controls: the risk factors lead with escalating US tariffs, countermeasures and retaliatory actions, plus enhanced export restrictions targeting trade with China. Manufacturing sits with Jabil, Sanmina and Foxconn Hon Hai across Malaysia, Vietnam, Mexico and other countries.
• Key-person and governance concentration: Jayshree Ullal holds the Chief Executive, President and Chairperson roles simultaneously, with no independent chair. Andy Bechtolsheim retains roughly 14.4% of the company. The 10-K notes that employment arrangements do not generally require employees to stay for any specified period.
• Revenue timing volatility from deferred revenue: the 10-K warns that an increase in customer trials and contracts with acceptance provisions, and greater volatility in product deferred revenue balances, "have created variability in our revenue," and that delays in acceptance, rejection or return could further affect reported revenue.
• Valuation and multiple compression: at roughly 61x trailing GAAP earnings, 23x trailing sales, 51x EV/EBITDA and 43x trailing free cash flow, against guided revenue growth of 27.7% and a declining gross margin, any deceleration signal from the two largest customers has an outsized effect on the multiple. The 52-week range of $114.52 to $189.82 shows how quickly that has happened before.

11. Recent Developments

• 4 Nov 2025 — Q3 2025 results. Revenue of $2,308.3m up 27.5% year on year, GAAP EPS of $0.67 and non-GAAP EPS of $0.75, with non-GAAP gross margin of 65.2%.
• 21 Nov 2025 — 52-week low. Shares set what remains the 52-week low of $114.52, roughly 40% below the July 2026 high.
• 12 Feb 2026 — Q4 and FY2025 results. Q4 revenue of $2,487.8m up 28.9%, with GAAP net income of $955.8m and non-GAAP net income of $1,046.6m — the first quarter ever above $1bn. Full-year revenue of $9,005.7m up 28.6% and non-GAAP EPS of $2.98. Q1 2026 guidance issued at approximately $2.6bn of revenue. Ullal noted the milestone of shipping a cumulative 150 million ports.
• 17 Feb 2026 — FY2025 Form 10-K filed. Disclosed 5,115 employees, $6.8bn of purchase commitments, the 26% and 16% customer concentration figures, and the new Cloud and AI Titans, Enterprise, and AI and Specialty Providers segmentation replacing the previous labels.
• 12 Mar 2026 — XPO optics multi-source agreement announced. A 12.8 Tbps liquid-cooled optics module supporting 204.8 Tbps of front-panel density per open compute rack unit, cutting networking racks by up to 75% and floor space by up to 44%.
• 5 May 2026 — Q1 2026 results and a guidance raise. Revenue of $2,709.0m up 35.1%, GAAP EPS $0.80, non-GAAP EPS $0.87 and operating cash flow of $1.69bn, with a 2026 Net Promoter Score of 89. FY2026 revenue guidance raised to approximately $11.5bn implying 27.7% growth, and the FY2026 AI fabrics target raised from $3.25bn to $3.5bn.
• 20 May 2026 — Gartner upgrade. Named a Leader in the 2026 Gartner Magic Quadrant for Enterprise Wired and Wireless LAN, up from the Visionaries quadrant in the 2025 edition — relevant to the $1.25bn campus revenue goal.
• 29 May 2026 — Annual Meeting of Stockholders. Shareholders elected Class III directors Lewis Chew, Greg Lavender and Mark B. Templeton to serve until the 2029 meeting, and ratified say-on-pay and the auditor.
• 9 Jun 2026 — 7060XE7 1.6T launch. Extended the Etherlink portfolio from 800G to 1.6T across air-cooled, liquid-cooled and high-density variants, with linear pluggable optics cutting interconnect power by roughly 60%. First systems available Q4 2026, with Meta, Microsoft and Oracle confirmed as validated deployments.
• 7 Jul 2026 — Q2 2026 earnings date confirmed. Announced that results for the quarter ended 30 June 2026 would be released after the US market close on Tuesday 4 August 2026, with the call at 4:30pm Eastern.
• 9 Jul 2026 — 52-week high. Shares reached $189.82 intraday, with an all-time closing high of $186.96 the following day, after commentary that AI demand was accelerating as the 1.6T platform entered commercial deployment.
• 21 Jul 2026 — Edge Threat Management launched. AI-driven zero-trust security for VeloCloud SD-WAN, collapsing multiple branch office boxes into a single secure edge platform — the first significant product output of the VeloCloud acquisition.

12. Key Dates to Watch

• 4 Aug 2026 — Q2 2026 results, released after the US market close with a conference call at 4:30pm Eastern. Management guided to approximately $2.8bn of revenue, a 46–47% non-GAAP operating margin and non-GAAP EPS of approximately $0.88
• 18 Aug 2026 — Rosenblatt Age of AI Technology Summit, per Arista's investor relations events listing
• 8 Sep 2026 — Goldman Sachs Communacopia and Technology Conference
• Expected Nov 2026 — Q3 2026 results. No date has been announced as of 2 August 2026; Arista's pattern is to confirm roughly three weeks in advance, so expect a scheduling release in early October 2026. Q3 2025 was reported on 4 November 2025
• Expected Q4 2026 — first systems of the 7060XE7 1.6T series become available, with additional models expected in Q1 2027
• Expected Feb 2027 — Q4 and FY2026 results, together with initial FY2027 guidance. FY2025 was reported on 12 February 2026
• Expected May 2027 — next Annual Meeting of Stockholders. The 2026 meeting was held on 29 May 2026

No dedicated investor or analyst day has been announced for 2026; Arista presents at third-party conferences instead. Management has indicated that scale-up Ethernet networking is a 2027 revenue opportunity rather than a 2026 one, so commentary on that timeline is worth watching on each earnings call. To track scheduled macro releases alongside company events, see the ChartsView Economic Calendar, and to discuss this report with other members visit the ChartsView Forum.

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