Key Stats for Arista Networks
- 52-Week Range: $106.99 – $189.82
- Current Price: $169.35
- Street Mean Target: $191.75
- Market Cap: $213.2 billion
- NTM P/E: 44.72x
- NTM EV/EBITDA: 35.10x
- Dividend Yield: None
Arista Networks (ANET) makes high-speed networking switches and software that connect servers inside the world’s largest data centers.
Every time a hyperscaler like Microsoft, Meta, or Google builds out AI infrastructure, Arista’s equipment is almost certainly going in the racks.
The company doesn’t write the AI models or build the chips, but nothing in a modern data center works at scale without the networking layer Arista provides.
Revenue has grown from $2.9 billion in 2021 to $9 billion in 2025, the stock is up 27% this year, and Q1 2026 delivered another 35% year-over-year revenue increase.
The stock isn’t cheap at 45x forward earnings. Understanding whether it’s worth the price requires looking at what the business actually produces.
See Arista Networks’ full analyst estimates and valuation model on TIKR (It’s free) >>>
A Growth Arc Driven by One of the Strongest Demand Environments in Tech
Arista’s revenue chart tells a story of consistent acceleration. The company grew from $2.9 billion in 2021 to $4.4 billion in 2022, $5.9 billion in 2023, $7.0 billion in 2024, and $9.0 billion in 2025.
Consensus estimates now see $11.6 billion in 2026, $14.4 billion in 2027, and $25 billion by 2030. Revenue has tripled in four years, and the Street expects it to nearly triple again.
The driver is AI infrastructure spending, which is accelerating rather than plateauing.
Arista’s Ethernet-based networking architecture has become the standard for large-scale AI clusters, winning against proprietary alternatives on a combination of performance, cost, and the flexibility of open standards. Q1 2026 reinforced the trend: revenue came in at $2.7 billion, up 35% year over year and nearly 9% sequentially.
CEO Jayshree Ullal framed it as evidence of Arista’s position at the “mission-critical confluence of secure client-to-campus-to-cloud and AI networking.”
The company’s new XPO liquid-cooled pluggable optics product, designed to reduce rack space by up to 75% compared to traditional alternatives, is aimed squarely at the next generation of AI data center density requirements.
See analysts’ growth forecasts and price targets for ANET (It’s free) >>>
Free Cash Flow That Looks Nothing Like a Hardware Company
Most networking hardware companies generate decent margins and modest free cash flow.
Arista is something different. FCF grew from $951 million in 2021 to $448 million in 2022, a dip driven by heavy inventory investment during the chip shortage, then accelerated sharply: $2.0 billion in 2023, $3.7 billion in 2024, and $4.3 billion in 2025.
A company generating $4.3 billion in annual free cash flow on $9 billion in revenue is operating at an FCF margin approaching 47%. Software businesses routinely trade at premium multiples for that kind of cash conversion. Arista earns it while also shipping physical hardware at massive scale.
The $12.4 billion net cash position on the balance sheet is the result of that compounding over time, giving the company the flexibility to invest in R&D, pursue acquisitions, or return capital without taking on debt.
Non-GAAP operating margin came in at 47.8% in Q1 2026, matching the prior year exactly despite 35% revenue growth, which means Arista is scaling without sacrificing profitability.
Compare Arista’s valuation against its own history and peers using TIKR’s model tools >>>
What the Valuation Model Suggests
TIKR’s model targets around $462 per share in the mid case over roughly four years, implying a total return of about 173% from current levels, or around 25% annualized.
The high case approaches $1,050 by the extended 2034 horizon. Even the low case implies strong returns. The scenario range skews heavily upward.
The return is driven almost entirely by EPS growth of around 21% annually in the mid case, with P/E essentially flat. Net income margins are forecast to expand modestly from already extraordinary levels toward 48%, which the current business is already approaching.
The model is not counting on multiple expansion or a rerating of the stock.
It just requires Arista to keep doing what it has been doing for the past four years, which is a reasonable ask given the demand environment and the company’s competitive position.
Should You Buy Arista Networks Stock?
Arista is one of the highest-quality businesses in the market today by almost any financial measure: 63% gross margins, 43% EBIT margins, 47% FCF margins, 31% ROIC, and a $12 billion net cash pile. The risk is the valuation.
At 45x forward earnings and 16x forward revenues, the stock prices in continued execution at a very high level. Any deceleration in hyperscaler AI spending or loss of share to a competitor would reprice ANET quickly.
See what analysts expect from Arista’s Q2 earnings >>>
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
