ANET
Arista Networks, Inc.
ANET has the edge over ARM overall, supported by stronger fundamentals and lower modeled downside.
ARM
Arm Holdings plc American Depositary Shares
ARM offers stronger valuation, but that advantage does not outweigh its weaker overall profile.
ANET Fundamentals
| Metric | Status |
|---|---|
| Strong | |
| Strong | |
| Strong | |
| Strong |
ANET's revenue, profitability, cash flow and balance sheet are all currently strong.
ARM Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Strong | |
| Strong |
ARM's revenue, profitability, cash flow and balance sheet are all currently healthy.
ANET PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 31x | $115 | -44% |
| Forward | 36x | $207 | — |
| Fair | 40x | $147 | -29% |
| Expensive | 52x | $194 | -6% |
| Current | 56x | $207 | — |
Historical ranges are pointers, not guarantees.
ANET's PE is in its expensive range at 56x. If earnings grow as analysts expect, today's price would be 36x next year's earnings, in its fair range.
ARM PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 167x | $147 | -27% |
| Fair | 224x | $197 | -1.4% |
| Current | 227x | $200 | — |
| Expensive | 361x | $317 | +59% |
Historical ranges are pointers, not guarantees.
ARM has the edge over ANET in the historical PE scenario, which offers more potential upside but is not a forecast.
ANET Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Strong growth | |
| Improving | |
| Moderate | |
| Moderate |
Analysts expect strong earnings and revenue growth for ANET, with profitability improving.
ARM Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Strong growth | |
| Strong growth | |
| Improving | |
| Moderate | |
| Moderate |
Analysts expect strong earnings and revenue growth for ARM, with profitability improving.
ANET Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $5.67 | +53% |
| Q3 2026 | $3.71 | +41% |
| Q2 2026 | $3.16 | +24% |
| Q1 2026 | $2.91 | +23% |
| Q4 2025 | $2.75 | +23% |
| Q3 2025 | $2.64 | +27% |
| Q2 2025 | $2.55 | +32% |
| Q1 2025 | $2.37 | +32% |
| Q4 2024 | $2.23 | +35% |
ANET has the edge over ARM on earnings, with more consistent year-over-year improvement.
ARM Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q3 2026 | $0.88 | +13% |
| Q2 2026 | $0.98 | +48% |
| Q1 2026 | $0.85 | +13% |
| Q4 2025 | $0.75 | -1.3% |
| Q3 2025 | $0.78 | +30% |
| Q1 2025 | $0.75 | +159% |
| Q4 2024 | $0.76 | +850% |
| Q3 2024 | $0.60 | +233% |
ARM earned $0.88 per share over the past year, up 13% from the year before.
ANET Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $3.7B | +58% |
| Q2 2026 | $3B | +38% |
| Q1 2026 | $2.7B | +35% |
| Q4 2025 | $2.5B | +29% |
| Q3 2025 | $2.3B | +27% |
| Q2 2025 | $2.2B | +30% |
| Q1 2025 | $2B | +28% |
| Q4 2024 | $1.9B | +25% |
ANET has the edge over ARM on sales, with stronger typical year-over-year growth.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 45% | +2.5 points |
| Q2 2026 | 45% | +0.7 points |
| Q1 2026 | 43% | -0.1 points |
| Q4 2025 | 42% | +0.1 points |
| Q3 2025 | 42% | -1 points |
| Q2 2025 | 45% | +3.3 points |
| Q1 2025 | 43% | +0.8 points |
| Q4 2024 | 41% | -0.1 points |
ANET has the edge over ARM on profitability, with a higher operating margin.
ARM Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $1.4B | +27% |
| Q2 2026 | $1.3B | +22% |
| Q1 2026 | $1.5B | +20% |
| Q4 2025 | $1.2B | +26% |
| Q3 2025 | $1.1B | +34% |
| Q2 2025 | $1.1B | +12% |
| Q1 2025 | $1.2B | +34% |
| Q4 2024 | $983M | +19% |
ARM's revenue has grown year over year for eight quarters in a row: $1.4B last quarter, up 27% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 14% | -0.4 points |
| Q2 2026 | 7.1% | -3.8 points |
| Q1 2026 | 29% | -3.6 points |
| Q4 2025 | 15% | -2.9 points |
| Q3 2025 | 14% | +6.8 points |
| Q2 2025 | 11% | -8.5 points |
| Q1 2025 | 33% | +31 points |
| Q4 2024 | 18% | +1.5 points |
ARM's operating margin was 14% last quarter, about level with the same quarter a year ago.
ANET Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $1.1B | -11% |
| Q2 2026 | $1.1B | -10% |
| Q1 2026 | $1.6B | +167% |
| Q4 2025 | $1.2B | +20% |
| Q3 2025 | $1.2B | +6.1% |
| Q2 2025 | $1.2B | +19% |
| Q1 2025 | $613.3M | +22% |
| Q4 2024 | $1B | +96% |
ANET has the edge over ARM on cash flow, with more consistent year-over-year improvement.
ARM Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $135M | -69% |
| Q2 2026 | $705M | +296% |
| Q1 2026 | $186M | +1.1% |
| Q4 2025 | $186M | -48% |
| Q3 2025 | $429M | +$476M |
| Q2 2025 | $178M | +$497M |
| Q1 2025 | $184M | -72% |
| Q4 2024 | $360M | +25% |
ARM generated $1.2B in free cash flow over the past year, up 5.3% from the year before.
ANET Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.2% | +2.2M shares |
| 1 year | +0.1% | +1.6M shares |
| 3 years | +0.6% | +7.7M shares |
| 5 years | 0% | -344K shares |
| Available history | -1.2% | -15.9M shares |
ANET has the edge over ARM on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | — |
| Q2 2026 | — |
| Q1 2026 | — |
| Q4 2025 | $620.1M |
| Q3 2025 | — |
| Q2 2025 | $195.9M |
| Q1 2025 | $787.1M |
| Q4 2024 | $123.8M |
ANET spent $620M buying back its own shares over the past year, down 44% from the year before.
ARM Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.1% | +1M shares |
| 1 year | +0.9% | +10M shares |
| 3 years | +5.2% | +53.7M shares |
ARM has 1.1B diluted shares, up 0.9% from a year ago.
| Quarter | Spent |
|---|---|
| Q1 2023 | — |
| Q4 2022 | — |
| Q3 2022 | — |
| Q2 2022 | — |
ANET Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -0.4x | Net Cash |
| Q2 2026 | -0.5x | Net Cash |
| Q1 2026 | -0.7x | Net Cash |
| Q4 2025 | -0.5x | Net Cash |
| Q3 2025 | -0.6x | Net Cash |
| Q2 2025 | -0.6x | Net Cash |
| Q1 2025 | -0.6x | Net Cash |
| Q4 2024 | -0.9x | Net Cash |
ANET has more cash than debt.
ARM Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q1 2023 | -1.6x | Net Cash |
ARM has more cash than debt.
ANET Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 59.9 | Neutral |
| Stochastic | 40.9 | Neutral |
ANET's weekly RSI is 60 (neutral) and its Stochastic is 41 (neutral).
ARM Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 43.0 | Neutral |
| Stochastic | 11.0 | Oversold |
ARM's weekly RSI is 43 (neutral) and its Stochastic is 11 (oversold).
ANET PE vs Technology Sector
| Metric | ANET | Sector median | Relative |
|---|---|---|---|
| PE | 56x | 28x | 100% above |
| PE % | 91 | 35 | 56 pts above |
ANET has the edge over ARM on valuation relative to its sector.
ARM PE vs Technology Sector
| Metric | ARM | Sector median | Relative |
|---|---|---|---|
| PE | 227x | 28x | 715% above |
| PE % | 51 | 23 | 28 pts above |
ARM is trading at 227x earnings, a 715% premium to the Technology sector's median of 28x.
ANET Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $190.8 | 8.3% above |
| 20 week MA | $188.0 | 9.9% above |
| 50 week MA | $160.7 | 29% above |
| 100 week MA | $136.6 | 51% above |
| 200 week MA | $99.6 | 107% above |
ANET has stronger trend alignment. ANET is above 5 of 5 weekly averages versus ARM above 1 of 4.
ARM Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $237.8 | 16% below |
| 20 week MA | $257.3 | 22% below |
| 50 week MA | $213.9 | 6.6% below |
| 100 week MA | $176.5 | 13% above |
ARM has pulled back, but its long-term trend is still up: it's below its 8-, 20- and 50-week averages, but 13% above its 100-week average.
ANET Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $12.8 | $18.1 | +41% |
| 2021 | $18.1 | $35.5 | +96% |
| 2022 | $35.5 | $29.9 | -16% |
| 2023 | $29.9 | $58.9 | +97% |
| 2024 | $58.9 | $113.0 | +92% |
| 2025 | $113.0 | $131.8 | +17% |
| 2026 YTD | $131.8 | $206.6 | +57% |
ANET has finished higher in five of the last six years, three of them by more than 50%. It's up 57% so far in 2026.
ARM Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2023 | $60.8 | $75.2 | +24% |
| 2024 | $75.2 | $129.2 | +72% |
| 2025 | $129.2 | $110.3 | -15% |
| 2026 YTD | $110.3 | $199.8 | +81% |
ARM has the edge over ANET on returns for 2026, with the stronger performance.