Arista Networks, Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of September 14, 2026.
Arista Networks, Inc. gets a balanced fundamental read when revenue growth of 32.02%, EPS growth of 39.94%, free-cash-flow growth of 41.77%, net margin of 38.37%, and ROIC of 21.80% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 2.96x and debt-to-equity is 0.00x, so the balance-sheet read is part of the final view rather than a footnote.
Arista Networks, Inc. has market cap of $236.48B and closed at $188 on September 14, 2026.
Five-year revenue CAGR is 32.02% and five-year EPS CAGR is 39.94%.
Five-year free-cash-flow CAGR is 41.77%.
Net margin is 38.37% and ROIC is 21.80%.
Current ratio is 2.96x and debt-to-equity is 0.00x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Analyzing Arista Networks, Inc. requires testing whether its rapid expansion, cash generation, operating efficiency, and balance-sheet strength present a unified fundamental profile. With the stock closing at $188 on September 14, 2026, we begin by analyzing the underlying business metrics before assessing the market's current valuation.
A rigorous analysis must evaluate the five-year revenue compound annual growth rate of 32.02% alongside a five-year EPS CAGR of 39.94%. We then cross-examine this trajectory against a five-year free cash flow CAGR of 41.77% to verify if actual cash generation supports the reported accounting profits.
Current compounder snapshot · ANET
Live supporting context; not part of the article's frozen 2026-09-14 evidence snapshot.
As an operating business within the Technology sector, the company must be evaluated based on hard operational data. This snapshot integrates market capitalization, growth metrics, profitability margins, and leverage structures to establish a baseline before examining individual financial trends.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered. Q2 FY2026 (2026-06-30): $3.04B.
+945.85% over 10Y
tgmcharts.com
Five-year revenue CAGR: 32.02%. This is endpoint-to-endpoint across the five-year window — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 32.02% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Translating Top-Line Momentum Into Per-Share Earnings
Efficient growth conversion occurs when sales expansion translates directly into bottom-line earnings for shareholders. The company's five-year revenue CAGR of 32.02% demonstrates strong top-line momentum, while a five-year EPS CAGR of 39.94% indicates that profitability has outpaced sales growth, suggesting potential operating leverage or share count reduction.
EPS
ANET EPS
$0.96
EPS history shows how much of the business growth has reached shareholders. Q2 FY2026 (2026-06-30): $0.96.
≈21x over 10Y
tgmcharts.com
Five-year EPS CAGR: 39.94%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 39.94% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Verifying Earnings Integrity via Cash Generation
Free cash flow provides an essential reality check on reported net income. With a five-year free cash flow CAGR of 41.77%, cash generation has closely matched the bottom-line earnings trajectory, minimizing concerns regarding aggressive accrual accounting or excessive working capital consumption.
free cash flow
ANET free cash flow
$1.05B
Free cash flow checks whether earnings are converting into owner cash. Q2 FY2026 (2026-06-30): $1.05B.
+2161.70% over 10Y
tgmcharts.com
Five-year free-cash-flow CAGR: 41.77%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 41.77% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
High Operating Efficiency and Capital Returns
The durability of this expansion depends on underlying profitability and reinvestment efficiency. A net margin of 38.37% highlights strong pricing execution, while a return on invested capital of 21.80% confirms that management continues to deploy capital into highly productive projects.
net margin
ANET net margin
39.95%
Net margin is the operating-quality check behind the growth record. Q2 FY2026 (2026-06-30): 39.95%.
+22.3pp over 10Y
tgmcharts.com
Net margin (TTM): 38.37%. The bars below are reported fiscal periods (quarterly where available).
Net margin of 38.37% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
ROIC
ANET ROIC
21.80%
ROIC tests whether the business earns enough on reinvested capital to deserve attention. Q2 FY2026 (2026-06-30): 21.80%.
+7.1pp over 10Y
tgmcharts.com
Latest ROIC: 21.80%.
ROIC of 21.80% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Uncompromised Liquidity and Zero-Debt Cushion
A company's balance sheet acts as the ultimate guardrail for its growth strategy. The current ratio of 2.96x points to abundant short-term liquidity, while a debt-to-equity ratio of 0.00x indicates a capital structure entirely free of long-term debt, leaving the business highly resilient to macroeconomic shocks.
debt-to-equity
ANET debt-to-equity Chart
0.00x
Debt-to-equity keeps the checkup honest about balance-sheet flexibility. Historical series through 2025-12-31.
-100.00% over 5Y
tgmcharts.com
Latest debt-to-equity ratio: 0.00x.
Debt-to-equity of 0.00x and current ratio of 2.96x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Valuation Multiples Reflect High Expectations
The market demands significant operational execution at these levels. Trading at a P/E ratio of 59.25x with an earnings yield of 1.69%, the current market price sits above the analyst DCF (FMP) reference estimate, suggesting that the valuation already discounts a substantial portion of future growth.
The close at $188 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
The Tension Between Operational Excellence and Multiple Compression
The optimistic scenario rests on the business maintaining its exceptional five-year revenue CAGR of 32.02% and high capital efficiency. Conversely, the primary risk is that even minor growth decelerations could lead to severe multiple compression, especially given that the stock trades above estimated fair value.
Bull and bear case
Fundamental support
Five-year revenue CAGR of 32.02% and five-year EPS CAGR of 39.94% support the business case.
Net margin of 38.37% and ROIC of 21.80% are the quality checks behind the thesis.
Fundamental pressure
Free-cash-flow CAGR of 41.77% can weaken the read if it falls away from EPS growth.
Debt-to-equity of 0.00x and current ratio of 2.96x are the balance-sheet checks that can change the view.
Monitoring Future Operational and Reinvestment Execution
This fundamental assessment is based on historical financial performance up to September 14, 2026. Any material shift in the company's growth trajectory, capital return profile, or cash conversion efficiency would require a prompt re-evaluation of this thesis.
FAQ
What is the fundamental read on ANET?
Arista Networks, Inc. is judged through revenue growth of 32.02%, EPS growth of 39.94%, free-cash-flow growth of 41.77%, net margin of 38.37%, and ROIC of 21.80%.
Which ANET fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this ANET checkup refresh?
Its figures are as of September 14, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
Revenue growth moving away from the current five-year CAGR of 32.02%.
Free-cash-flow growth drifting away from five-year EPS CAGR of 39.94%.
ROIC or balance-sheet flexibility weakening from ROIC of 21.80% and debt-to-equity of 0.00x.
The bottom line
Arista Networks, Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
“The increase for the three and six months periods was primarily d riven by increased personnel costs of $33.3 million and $59.4 million, as well as an in crease in new product introduction costs of $8.3 million and $58.8 million.”
“Two of our customers accounted for more than 10% of our total revenue in each of the last three years.”
“The non-cash adjustments to net income were driven by stock-based compensation of $241.3 million, and offset by a $213.1 million increase in deferred taxes primarily due to the increase in deferred revenue.”
“Historically, a limited number of customers have accounted for a significant portion of our revenue.”
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.
