Arista Networks, Inc. Common Stock

The core conclusion is straightforward: ANET remains worth buying, but only in tranches under strict valuation dis‐ cipline; it is not a stock to chase when market enthusiasm is elevated. Over the past several years, Arista has evolved from a “high-quality networking-hardware company” into a “core AI data-center Ethernet infrastructure asset.”

That rerating is backed by substantial operating delivery: revenue rose from USD 4.38 billion in 2022 to USD 9.01 billion in 2025, operating cash flow reached USD 4.37 billion in 2025, Q1 2026 revenue grew another 35.1% year over year, and management’s recent quarterly revenue guidance has consistently been conservative and then exceeded. The counterpoint is that the market is already paying a substantial price for this quality: the current trailing P/E is about 52.9x and the forward P/E about 40.7x. This is no longer a cheap, undervalued stock; it is a high-quality name that must be bought within disciplined price bands.

For trade execution, I do not label ANET an “all-in” buy. The call is Buy, start with a light position, and add only after a valuation pullback. Using a 40.67x forward P/E and the then-market price of roughly USD 154 implies nexttwelve-month EPS of about USD 3.79.

On that basis, a 40x forward P/E corresponds to roughly USD 152, 35x to roughly USD 133, and 45x to roughly USD 171. The execution plan is to establish a core