Arista Networks: A Decade of Compounding Returns and the Roadmap to AI-Driven Growth

Arista Networks (ANET) has emerged as a standout performer in the technology sector, delivering exceptional compounding returns over the past decade while positioning itself at the forefront of AI-driven networking innovation. From 2015 to 2025, the company's revenue, EBITDA, and stock price have grown at remarkable rates, reflecting its ability to capitalize on evolving market demands. As the global shift toward AI accelerates, Arista's strategic investments and product roadmap suggest it is well-positioned to sustain its growth trajectory into the next decade.

A Decade of Financial Dominance

Arista's financial performance from 2015 to 2025 underscores its operational excellence and market leadership. For the 12 months ending September 30, 2025, the company , a 27.75% year-over-year increase. This follows a 19.5% growth in 2024 and a 33.75% surge in 2023, demonstrating consistent compounding momentum. EBITDA growth has mirrored this trend, hitting $3.627 billion (27.95% YoY growth). These figures highlight Arista's ability to scale efficiently while maintaining profitability.

The stock market has rewarded this performance with explosive appreciation. In 2015, Arista's shares traded as low as $3.54, but by October 29, 2025, the stock reached a historical high of $164.94. Over the past five years, the total return for ANET has been 639.47%, far outpacing the industry average. Even in 2023 and 2024, the stock , respectively. As of November 13, 2025, the stock closed at $130.30, according to market data. However, , suggesting elevated expectations may already be priced in.

AI as the Next Growth Catalyst

Arista's long-term success is increasingly tied to its AI-driven strategy. The company has outlined an ambitious roadmap to capture a significant share of the AI infrastructure market, . This growth is in Q3 2025, largely driven by AI projects. Arista's product portfolio now includes high-speed switching platforms optimized for AI workloads and AI-powered software tools like Arista AVA™, which enhance network visibility and threat detection according to company reports.

Strategic acquisitions, such as the VeloCloud SD-WAN portfolio from Broadcom, have further strengthened Arista's capabilities in campus and branch networking. CEO and COO have emphasized confidence in maintaining , respectively, in Q3 2025) while scaling R&D investments. The company aims to expand its campus networking market share beyond the current 5% and capitalize on scale-up networks, positioning itself as a critical infrastructure provider for enterprises and sovereign states.

Future Outlook and Risks

Arista's 20% year-over-year growth target for the next fiscal year hinges on its ability to execute on AI and campus networking initiatives. With 25 to 40 new clients expected to join its ecosystem by 2026 according to market analysis, the company's deferred revenue pipeline appears robust. However, risks include macroeconomic headwinds, supply chain constraints, and competition from rivals like Cisco and Juniper. Additionally, the high P/E ratio suggests investors are betting on future earnings, which may not materialize if AI adoption slows or margins compress.

Conclusion

Arista Networks' 10-year journey from a niche networking player to an AI infrastructure leader is a testament to its innovation and operational discipline. While the stock's valuation reflects high expectations, its compounding revenue and EBITDA growth, coupled with a clear AI-driven strategy, justify its premium. For long-term investors, Arista represents a compelling case of a company leveraging technological megatrends to create sustained value.