ANET
Arista Networks
Platform / Network
★ Quality 79/100Price today
$193.78
This company value is already calculated
We know what it is worth from its audited numbers, and whether it trades above or below that today. Create your free account to see it.
See what it is worthcharlieapp.co
What this business is made of
The business
Arista builds the internal highways of AI data centers.
Arista sells high-speed network switches for hyperscale data centers and, increasingly, for AI clusters. It charges for hardware plus licenses of its EOS operating system. In 2025 it booked $9.0B in revenue with a 64% gross margin and $4.3B in FCF.
EOS is a single software operating system that runs across its entire lineup, with clean code and none of Cisco's technical debt. That cuts bugs and operating costs for customers like Microsoft and Meta, who account for a big chunk of sales. The advantage is real but narrow: it depends on a few giant customers who can design their own silicon.
Revenue history
From $2.9B to $9.0B in 4 years — nearly 3.1x its size. Selling more and more is the base of everything else.
Where each $100 of sales goes
Revenue $9.0B · FY2025
Of every $100 in sales, $61 goes to costs and operations; $39 is left as net profit (39% margin).
Catalysts and risks
AI network spending: Arista targets $750M in AI back-end revenue in 2025, scaling into 2026.
Migration from 400G to 800G in hyperscale during 2025-2026.
Expansion to enterprise customers beyond the hyperscalers, diversifying the $9.0B base.
Brutal concentration: Microsoft and Meta carry too much weight. If they build their own switching, the model suffers.
Broadcom supplies its silicon. With no chip of its own, its fate depends on a single vendor.
Perfect-growth valuation: at 24.5x normalized FCF, a soft quarter hurts.
Charlie's note
“At 24.54x for a business growing 32% with a 64% gross margin, you're paying a sensible multiple for this quality; the nuance is that the EOS moat, though real, rests on a handful of giants capable of building their own silicon. Patience with the customer concentration.”
Analysis · June 2026
Want to follow Arista Networks?
We do not calculate a value here: Arista Networks does not generate cash flows you can project, and putting a number on it would be making it up. What you can do is follow it and tell us the price you care about — we will email you when it gets there.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.