Arista Networks (ANET)
Forward P/E is 40.30x against a peer median of 26.38x, a ratio of 1.53x, with a trailing P/E of 59.55x and the peer set's highest price-to-sales figure at 22.73x. Latest-quarter revenue grew a strong 37.7% year over year (PRIMARY, EDGAR), but that is below the +50% level that could excuse a ratio above 1.3x, and the PEG of 1.61 is not below ~1, so the exceptional-growth exception does not apply. Delivered demand check: the Communications equipment group's median latest-quarter revenue growth was 27.3% year over year (SEC filings) — demand rising, which supports the business but not the full premium. The ratio is below the 1.75x bubble threshold and earnings are real, so this is overvalued rather than a bubble.
What would change this label: Moves toward FAIRLY PRICED if revenue growth reaches +50% year over year with the PEG falling below ~1.0, or if the price falls enough to bring the forward P/E to ~30x (a ratio near 1.15x) at unchanged estimates. Moves toward BUBBLE territory if the ratio rises above 1.75x (forward P/E above ~46x at the current peer median) while revenue growth slows below +25% year over year.
Arista is growing fast — sales rose about 38% in a year — and it sells equipment every AI data centre needs. But its shares cost about 40 times next year's expected profit, versus about 26 times for similar companies, and over 22 times its sales. You are paying a top price for that growth, with little room if it slows.
Both lines start at 100 on 2020-09-01. Over the full window Arista Networks returned +1235.11% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Arista Networks: -50.4% (2025-01-22 to 2025-04-04). Source: Nasdaq official daily history.
What the label rests on
Forward P/E is 40.30x against a peer median of 26.38x, a ratio of 1.53x, with a trailing P/E of 59.55x and the peer set's highest price-to-sales figure at 22.73x. Latest-quarter revenue grew a strong 37.7% year over year (PRIMARY, EDGAR), but that is below the +50% level that could excuse a ratio above 1.3x, and the PEG of 1.61 is not below ~1, so the exceptional-growth exception does not apply. Delivered demand check: the Communications equipment group's median latest-quarter revenue growth was 27.3% year over year (SEC filings) — demand rising, which supports the business but not the full premium. The ratio is below the 1.75x bubble threshold and earnings are real, so this is overvalued rather than a bubble. The company’s forward P/E is 40.3× against a peer median of 26.4×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Communications equipment group's median latest-quarter revenue growth was 27.3% year over year (SEC filings) — demand rising. Latest-quarter sales growth was +37.7% versus a year earlier (SEC filings).
| Company | Price (Oct 28, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Arista Networks (ANET) | $188.16 | 40.3× | 59.5× |
| MSI | $478.38 | 26.4× | 37.7× |
| LITE | $878.00 | 39.7× | — |
| CIEN | $356.35 | 34.2× | 79.6× |
| CSCO | $110.73 | 21.5× | 33.2× |
| FFIV | $398.49 | 21.9× | 31.8× |
| Peer median | 26.4× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
Gross margin = gross profit divided by sales, from SEC filings.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Jun 2026 2026-06-30 | $3.0B | 62.9% | $1.2B | 0.95 | $1.1B |
| Q/E Mar 2026 2026-03-31 | $2.7B | 61.9% | $1.0B | 0.80 | $1.6B |
| Q/E Dec 2025 2025-12-31 | $2.5B | 62.9% | $956M | — | — |
| Q/E Sep 2025 2025-09-30 | $2.3B | 64.6% | $853M | 0.67 | $1.2B |
| Q/E Jun 2025 2025-06-30 | $2.2B | 65.2% | $889M | 0.70 | $1.2B |
| Q/E Mar 2025 2025-03-31 | $2.0B | 63.6% | $814M | 0.64 | $613M |
| Q/E Dec 2024 2024-12-31 | $1.9B | 63.8% | $801M | — | — |
| Q/E Sep 2024 2024-09-30 | $1.8B | 64.2% | $748M | 2.33 | $1.2B |
| Q/E Jun 2024 2024-06-30 | $1.7B | 64.9% | $665M | 2.08 | $986M |
| Q/E Mar 2024 2024-03-31 | $1.6B | 63.7% | $638M | 1.99 | $504M |
| Q/E Dec 2023 2023-12-31 | $1.5B | 64.9% | $614M | — | — |
| Q/E Sep 2023 2023-09-30 | $1.5B | 62.4% | $545M | 1.72 | $688M |
The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | Arista Networks, Inc. |
| Chief executive | Jayshree Ullal (source: https://www.barrons.com/articles/arista-networks-ceo-stock-sale-623e5c78) |
| Sector | Technology — Communications Equipment — sells high-speed Ethernet switches and networking software for data centres |
| Share price (Oct 28, 2026) | $188.16 |
| Market value (market cap) | $235.8B — share price times shares outstanding of 1,261,224,648 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $10.5B |
| Net income, last twelve months | $4.0B |
| Free cash flow, last twelve months | — |
| Latest reported quarter | Q/E Jun 2026 (of 24 quarters in the data pack) |
| Six-year price return vs S&P 500 | +1235.11% vs +118.28% |
| Worst peak-to-trough fall | -50.4% (2025-01-22 to 2025-04-04) |
What we could not verify
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Free cash flow is absent for one or more quarters: either the filer does not separately tag PP&E purchases in its EDGAR cash-flow facts (common for banks), or — for a successor registrant's newest quarter — the cash-flow lines are year-to-date without the prior-quarter rung needed to difference them. Affected quarters are null in the data, never estimated.
- Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0001596532.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0001596532.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/ANET/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.