NYSEInformation TechnologyComputer HardwareSnapshot 2026-08-31
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Create your account →Intact: The reason to own it still holds.
Arista grows revenue about 30% a year. Profit margins stay near 46%. AI sales are doubling and help growth. New products support more sales.
Supply problems could slow revenue growth. Gross margins have fallen recently. Competition may hurt sales growth.
The price is about 28% above our fair value near $131. Analysts expect about 30% revenue growth. Our fair value is below the Street median of $181.
Breaks if: AI sales growth falls below 50% next year
Breaks if: Gross margin falls below 61% next quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on strong revenue and margin growth. The current thesis state is intact, supported by recent earnings beats and stable management priorities.
The market currently prices ANET at an expensive valuation compared to its peers, with a significant expectations gap. This suggests that investors may be anticipating continued strong performance, but the high valuation could indicate a lack of justification if growth slows.
Fundamentals are likely to remain strong in the near term, given management's consistent focus on revenue and margin growth. However, there is a low probability of a miss, though recent trends show earnings surprises are declining.
The long-term thesis hinges on the performance of sector bellwethers like DELL, SNDK, and STX. If these companies continue to perform well, it could support ANET's growth; conversely, if they miss expectations, it could negatively impact ANET.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this view. Revenue growth remains strong, driven by AI networking demand. Industry reports show increased spending on data center infrastructure. This trend reinforces expectations for continued high capital expenditure.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Sustain non-GAAP gross margins around 63-65% despite market and supply challenges.
Stated as a priority in 7 of last 7 quarters. Non-GAAP gross margins have been stable around 63-65%, with 63.4% in 2026-Q2 and 62.4% in 2026-Q1. Management's guidance and results show consistent delivery of strong gross margins, matching their stated priority.
“Non-GAAP gross margin of 63.4% in Q2 2026.”
“Non-GAAP gross margin of 62.4% in Q1 2026.”
“Non-GAAP gross margin of 63.4% in Q4 2025.”
“Non-GAAP gross margin of 65.2% in Q3 2025.”
“Non-GAAP gross margin of 65.6% in Q2 2025.”
“Non-GAAP gross margin of 64.1% in Q1 2025.”
“Non-GAAP gross margin of 64.2% in Q4 2024.”
Breaks if: Operating margin falls below 44% next quarter
Sustain non-GAAP gross margins around 63-65% despite market and supply challenges.
Stated as a priority in 7 of last 7 quarters. Non-GAAP gross margins have been stable around 63-65%, with 63.4% in 2026-Q2 and 62.4% in 2026-Q1. Management's guidance and results show consistent delivery of strong gross margins, matching their stated priority.
“Non-GAAP gross margin of 63.4% in Q2 2026.”
“Non-GAAP gross margin of 62.4% in Q1 2026.”
“Non-GAAP gross margin of 63.4% in Q4 2025.”
“Non-GAAP gross margin of 65.2% in Q3 2025.”
“Non-GAAP gross margin of 65.6% in Q2 2025.”
“Non-GAAP gross margin of 64.1% in Q1 2025.”
“Non-GAAP gross margin of 64.2% in Q4 2024.”
Breaks if: Revenue falls below ~$2.6B next quarter
Over the next 1 to 3 years, ANET's performance will depend on its ability to navigate sector challenges while maintaining its growth trajectory. Not investment advice.
