Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Arista Networks's 3-Year RORE % for the quarter that ended in Mar. 2026 was 12.25%.
The industry rank for Arista Networks's 3-Year RORE % or its related term are showing as below:
XSWX:ANET's 3-Year RORE % is ranked better than 60.24% of 2382
companies
in the Hardware industry
Industry Median: 4.94
vs XSWX:ANET: 12.25
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Arista Networks 3-Year RORE % Related Terms
Arista Networks 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Arista Networks's 3-Year RORE % 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 RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Hardware Industry
For the Hardware industry and Technology sector, Arista Networks's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Arista Networks's 3-Year RORE % 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Arista Networks (XSWX:ANET) has a 3-Year RORE % of 12.25 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Arista Networks and its competitors. According to the industry distribution chart, Arista Networks ranks #947 out of 2382 companies in the Hardware industry, placing it in the top 39.8%.
Is Arista Networks' 3-Year RORE % too high?
Arista Networks' current 3-Year RORE % is 12.25. The Hardware industry median 3-Year RORE % is 4.94. Arista Networks' value of 12.25 is 148% above this industry median. Based on the distribution chart, Arista Networks ranks #947 out of 2382 companies in the Hardware industry, which is above the industry midpoint. Overall, Arista Networks has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Arista Networks' 3-Year RORE % compare to ?
According to the Hardware industry distribution chart, Arista Networks ranks #947 out of 2382 companies for 3-Year RORE %. This puts Arista Networks in the upper half of its industry. The industry median 3-Year RORE % is 4.94. Arista Networks' value of 12.25 is 148% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Hardware company?
The median 3-Year RORE % among Hardware companies is 4.94, based on 2,382 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arista Networks's current 3-Year RORE % of 12.25 is 148% 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Arista Networks and its competitors. For the Hardware industry, the median 3-Year RORE % is 4.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arista Networks's current 3-Year RORE % is 12.25. 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 3-Year RORE % of 12.25. 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 3-Year RORE % is 12.25 and 148% above the Hardware industry median of 4.94. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Arista Networks (XSWX:ANET), the current 3-Year RORE % is 12.25 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:
3-Year RORE %: 12.25
GF Value™: CHF120.11 vs. price of CHF129.94 (8.2% above fair value)
Industry Position: 148% above the Hardware median (#947 of 2382)
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
Get the complete analysis for XSWX:ANET
3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:ANET has been successfully added to your 
