Arista NetworksMEX:ANET -5.37%95 Net Margin % is 37.76% as of Mar. 2026, which is 27% above its 10-year median of 29.70. GuruFocus rates MEX:ANET with a GF Score™ of 95/100 and a GF Value™ of MXN2,424.39 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,473 Hardware companies, Arista Networks ranks better than 98.3% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Arista Networks's Net Income for the
three
months ended in Mar. 2026 was MXN18,446 Mil. Arista Networks's Revenue for the
three
months ended in Mar. 2026 was MXN48,851 Mil. Therefore, Arista Networks's net margin for the quarter that ended in Mar. 2026 was 37.76%.
The historical rank and industry rank for Arista Networks's Net Margin % or its related term are showing as below:
MEX:ANET'
s Net Margin % Range Over the Past 10 Years
Min: 15.25 Med: 29.7 Max: 40.73
Current: 38.32
MEX:ANET's Net Margin % is ranked better than 98.3% of 2473
companies
in the Hardware industry
Industry Median: 2.7
vs MEX:ANET: 38.32
Arista Networks (MEX:ANET) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Arista Networks Net Margin % Related Terms
Arista Networks Net Margin % Historical Data
* Premium members only.
The historical data trend for Arista Networks's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:ANET vs STX, WDC, SNDK: Net Margin % Comparison
For the Computer Hardware subindustry, Arista Networks's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arista Networks Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Arista Networks's Net Margin % distribution charts can be found below:
* The bar in red indicates where Arista Networks's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Arista Networks (MEX:ANET) has a Net Margin % of 37.76% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Arista Networks and its competitors. This is 27% above median its historical median of 29.70. Over the past decade, Arista Networks' Net Margin % has ranged from 15.25 to 40.73. According to the industry distribution chart, Arista Networks ranks #42 out of 2473 companies in the Hardware industry, placing it in the top 1.7%.
Is Arista Networks' Net Margin % too high?
Arista Networks' current Net Margin % of 37.76% is 27% above median its 10-year median of 29.70. Over the past 10 years, this metric has ranged from a low of 15.25 to a high of 40.73. The Hardware industry median Net Margin % is 2.70. Arista Networks' value of 37.76% is 1298.5% above this industry median. Based on the distribution chart, Arista Networks ranks #42 out of 2473 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Arista Networks has a GF Score™ of 95/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arista Networks' Net Margin % compare to STX and WDC?
According to the Hardware industry distribution chart, Arista Networks ranks #42 out of 2473 companies for Net Margin %. This places Arista Networks in the top 2% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.70. Arista Networks' value of 37.76% is 1298.5% above this benchmark. Historically, Arista Networks' own Net Margin % has ranged from 15.25 to 40.73 over the past decade. While the company's 10-year median is 29.70 vs. the industry median of 2.70, Arista Networks has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Hardware company?
The median Net Margin % among Hardware companies is 2.70, based on 2,473 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arista Networks's current Net Margin % of 37.76% is 1298.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Arista Networks and its competitors. For the Hardware industry, the median Net Margin % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arista Networks's current Net Margin % is 37.76%, which is 27% above median its own 10-year median of 29.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arista Networks stock overvalued right now?
Based on GuruFocus' analysis, Arista Networks (MEX:ANET) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN2,424.39, compared to a current price of MXN2,749.00 — trading 13.4% above its estimated fair value. The current Net Margin % is 37.76%, which is 27% above median its 10-year median of 29.70 and 1298.5% above the Hardware industry median of 2.70. Arista Networks' overall GF Score™ is 95/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Arista Networks (MEX:ANET), the current Net Margin % is 37.76% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arista Networks (MEX:ANET) Overvalued in 2026?
Based on GuruFocus' analysis, Arista Networks stock appears to be overvalued.
The current stock price of MXN2,749.00 is trading 13.4% above its estimated GF Value™ of MXN2,424.39.
GuruFocus considers Arista Networks to be Modestly Overvalued.
Key valuation signals for MEX:ANET:
Net Margin %: 37.76% (27% above median its 10-year median of 29.70)
GF Value™: MXN2,424.39 vs. price of MXN2,749.00 (13.4% above fair value)
Industry Position: 1298.5% above the Hardware median (#42 of 2473)
No single metric tells the full story. See the MEX:ANET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible operating system that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three-fourths of its sales from North America.
95GF Score
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