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Arista NetworksANET +1.00%98 3-Year ROIIC % is 44.41 as of Dec. 2025, which is 7% below its 10-year median of 47.55. GuruFocus rates ANET with a GF Score™ of 98/100 and a GF Value™ of $141.72 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,373 Hardware companies, Arista Networks ranks better than 82.68% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Arista Networks's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 44.41%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Arista Networks's 3-Year ROIIC % or its related term are showing as below:
ANET's 3-Year ROIIC % is ranked better than 82.68% of 2373
companies
in the Hardware industry
Industry Median: 2.34
vs ANET: 44.41
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Arista Networks 3-Year ROIIC % Related Terms
Arista Networks 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Arista Networks's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Arista Networks's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Arista Networks's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Arista Networks (ANET) has a 3-Year ROIIC % of 44.41 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Arista Networks and its competitors. This is near median its historical median of 47.55. Over the past decade, Arista Networks' 3-Year ROIIC % has ranged from 15.89 to 114.99. According to the industry distribution chart, Arista Networks ranks #411 out of 2373 companies in the Hardware industry, placing it in the top 17.3%.
Is Arista Networks' 3-Year ROIIC % too high?
Arista Networks' current 3-Year ROIIC % of 44.41 is near median its 10-year median of 47.55. Over the past 10 years, this metric has ranged from a low of 15.89 to a high of 114.99. The Hardware industry median 3-Year ROIIC % is 2.34. Arista Networks' value of 44.41 is 1797.9% above this industry median. Based on the distribution chart, Arista Networks ranks #411 out of 2373 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 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arista Networks' 3-Year ROIIC % compare to WDC and STX?
According to the Hardware industry distribution chart, Arista Networks ranks #411 out of 2373 companies for 3-Year ROIIC %. This places Arista Networks in the top 17% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 2.34. Arista Networks' value of 44.41 is 1797.9% above this benchmark. Historically, Arista Networks' own 3-Year ROIIC % has ranged from 15.89 to 114.99 over the past decade. While the company's 10-year median is 47.55 vs. the industry median of 2.34, 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 3-Year ROIIC % for a Hardware company?
The median 3-Year ROIIC % among Hardware companies is 2.34, based on 2,373 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arista Networks's current 3-Year ROIIC % of 44.41 is 1797.9% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Arista Networks and its competitors. For the Hardware industry, the median 3-Year ROIIC % is 2.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arista Networks's current 3-Year ROIIC % is 44.41, which is near median its own 10-year median of 47.55. 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 (ANET) is currently considered Modestly Overvalued. The stock's GF Value™ is $141.72, compared to a current price of $176.61 — trading 24.6% above its estimated fair value. The current 3-Year ROIIC % is 44.41, which is near median its 10-year median of 47.55 and 1797.9% above the Hardware industry median of 2.34. Arista Networks' overall GF Score™ is 98/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Arista Networks (ANET), the current 3-Year ROIIC % is 44.41 as of Dec. 2025. 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 (ANET) Overvalued in 2026?
Based on GuruFocus' analysis, Arista Networks stock appears to be overvalued.
The current stock price of $176.61 is trading 24.6% above its estimated GF Value™ of $141.72.
GuruFocus considers Arista Networks to be Modestly Overvalued.
Key valuation signals for ANET:
3-Year ROIIC %: 44.41 (near median its 10-year median of 47.55)
GF Value™: $141.72 vs. price of $176.61 (24.6% above fair value)
Industry Position: 1797.9% above the Hardware median (#411 of 2373)
No single metric tells the full story. See the 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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