Qualtix Stock Brief
Arista Networks, Inc. (ANET) stock analysis: business quality, valuation, and entry timing
Arista Networks sells high-speed networking switches and software used in cloud and AI data centers. Strong margins and a net cash balance sheet come with dependence on a few very large cloud customers. Public Qualtix model snapshot from 2026-10-26 for ANET: business quality 90/100, a strong model reading and valuation Expensive. Today's verdict and Entry Timing are shown after a free sign-in.
Qualtix evaluates ANET with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.
Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.
ANET public evidence metrics from the latest validated Qualtix snapshot
| Metric | Value | Why it matters | Source |
|---|---|---|---|
| Revenue growth | 26.1% | 3-year revenue CAGR | FMP, computed |
| FCF margin | 48.9% | Free cash flow divided by revenue | FMP, computed |
| Operating margin | 43.1% | Profitability margin | FMP, computed |
| Gross margin | 63.0% | Revenue retained after direct costs | FMP, computed |
| Return on capital (pre-tax) | 30.7% | Operating profit before tax, divided by equity plus debt | FMP, computed |
| ROE | 27.3% | Return on equity | FMP, computed |
| Cash and debt | Cash and investments $13.3B / Debt $0 | Balance-sheet context | FMP, reported |
| TTM P/E | 55.9x | Price to trailing earnings | FMP, computed |
Qualtix view
- Business quality: 90/100, a strong model reading.
- Valuation is currently labeled Expensive, so the stock needs stronger business evidence or a better price to improve the setup.
Today's verdict
- Today's model verdict and Entry Timing for ANET update every market day and are shown after a free sign-in.
Data and snapshot dates
- Model snapshot date: 2026-10-26.
- Financial data through: 2026-06-30.
- Scored by the current Qualtix model.
- Data-confidence status: high.
What supports the current view
- Business quality is a major strength in the public model snapshot (90/100).
What weakens the current view
- Valuation is currently labeled Expensive, so price still matters.
- Beta of 1.60 signals higher market sensitivity and potential volatility.
What changed
- Business Quality was unchanged from the previous snapshot.
What to research next
- Verify whether Arista Networks, Inc.'s moat, margins, growth, and capital efficiency still justify a 90/100 Business Quality score.
- Compare ANET's Expensive valuation with sector peers and ask what growth or margin evidence would justify the premium.
- Compare ANET with CSCO and NVDA to see whether the model edge is company-specific or sector-wide.
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Qualtix is for research and education only. It is not financial advice.