ANETNEUTRAL

Gross Margin

61.9%

Higher than 48% of Technology sector peers

Updated 1736h ago

Sector Performance

48th percentile

ANET

61.9%

Sector Median

65.2%

Sector Avg

60.4%

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Deep Analysis

A gross margin of 61.9% means that after subtracting the direct costs of producing its networking hardware and software, Arista Networks keeps 61.9 cents of every dollar of revenue; the rest covers manufacturing and materials.

This sits slightly below the 62.2% median gross margin for technology sector peers, placing Arista in the 49th percentile—essentially in the middle of the pack. Both the year-over-year and quarter-over-quarter changes are listed as N/A, so no trend direction can be determined from the available data. With a current level close to the sector average and no trend information, the metric offers no clear signal of improvement or deterioration, implying a neutral risk profile. This performance neither supports nor contradicts the overall BULLISH verdict, as a middle-of-the-pack gross margin without a trend does not challenge the positive outlook but also fails to reinforce it.

Frequently Asked Questions

What does the Gross Margin tell investors about ANET?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ANET's Gross Margin compare to its sector?

ANET's Gross Margin of 61.9% compares to a Technology sector median of 65.2%, placing it in the 48th percentile.

Who are ANET's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ORCL (65.2%), MDB (72.2%), SAP (73.0%), LIF (77.3%), OKTA (77.8%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.