Arista NetworksXSWX:ANET 98 Pretax Margin % is 46.93% as of Mar. 2026, which is 39% above its 10-year median of 33.83. GuruFocus rates XSWX:ANET with a GF Score™ of 98/100 and a GF Value™ of CHF120.11. The stock has 4 warning signs investors should review. Among 2,475 Hardware companies, Arista Networks ranks better than 98.55% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Arista Networks Pretax Margin % Related Terms
Arista Networks Pretax Margin % Historical Data
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The historical data trend for Arista Networks's Pretax 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.
For the Computer Hardware subindustry, Arista Networks's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Arista Networks's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Arista Networks's Pretax 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 (XSWX:ANET) has a Pretax Margin % of 46.93% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Arista Networks and its competitors. This is 39% above median its historical median of 33.83. Over the past decade, Arista Networks' Pretax Margin % has ranged from 13.42 to 47.19. According to the industry distribution chart, Arista Networks ranks #36 out of 2475 companies in the Hardware industry, placing it in the top 1.5%.
Is Arista Networks' Pretax Margin % too high?
Arista Networks' current Pretax Margin % of 46.93% is 39% above median its 10-year median of 33.83. Over the past 10 years, this metric has ranged from a low of 13.42 to a high of 47.19. The Hardware industry median Pretax Margin % is 3.58. Arista Networks' value of 46.93% is 1210.9% above this industry median. Based on the distribution chart, Arista Networks ranks #36 out of 2475 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 98/100, reflecting its overall financial health beyond just this single metric.
How does Arista Networks' Pretax Margin % compare to ?
According to the Hardware industry distribution chart, Arista Networks ranks #36 out of 2475 companies for Pretax Margin %. This places Arista Networks in the top 2% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.58. Arista Networks' value of 46.93% is 1210.9% above this benchmark. Historically, Arista Networks' own Pretax Margin % has ranged from 13.42 to 47.19 over the past decade. While the company's 10-year median is 33.83 vs. the industry median of 3.58, 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 Pretax Margin % for a Hardware company?
The median Pretax Margin % among Hardware companies is 3.58, based on 2,475 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arista Networks's current Pretax Margin % of 46.93% is 1210.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Arista Networks and its competitors. For the Hardware industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arista Networks's current Pretax Margin % is 46.93%, which is 39% above median its own 10-year median of 33.83. 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?
Arista Networks (XSWX:ANET) has a current Pretax Margin % of 46.93%. The stock's GF Value™ is CHF120.11, compared to a current price of CHF129.94 — trading 8.2% above its estimated fair value. The current Pretax Margin % is 46.93%, which is 39% above median its 10-year median of 33.83 and 1210.9% above the Hardware industry median of 3.58. Arista Networks' overall GF Score™ is 98/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Arista Networks (XSWX:ANET), the current Pretax Margin % is 46.93% 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 (XSWX:ANET) Overvalued in 2026?
Based on GuruFocus' analysis, Arista Networks stock appears to be overvalued.
The current stock price of CHF129.94 is trading 8.2% above its estimated GF Value™ of CHF120.11.
Key valuation signals for XSWX:ANET:
Pretax Margin %: 46.93% (39% above median its 10-year median of 33.83)
GF Value™: CHF120.11 vs. price of CHF129.94 (8.2% above fair value)
Industry Position: 1210.9% above the Hardware median (#36 of 2475)
No single metric tells the full story. See the XSWX: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.
98GF Score
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