Arista Networks vs ServiceNow

Arista Networks vs ServiceNow: this page compares the two companies’ business models, financial performance, and market context in a clear, neutral tone. It presents how each organisation approaches innovation, operations, and competitive positioning, with accessible explanations for readers seeking independent understanding. Educational content, not financial advice.

Arista Networks vs ServiceNow: this page compares the two companies’ business models, financial performance, and market context in a clear, neutral tone. It presents how each organisation approaches i...

About The Companies

Arista Networks (ANET)

Arista Networks (ticker ANET) is a US-listed networking company specialising in high-performance Ethernet switches and network operating software for data centres, cloud providers and large enterprises. Known for its Extensible Operating System (EOS), Arista blends hardware and software to serve customers that demand scalability, low latency and automation. With a market capitalisation of about $183.43 billion, the company is viewed as a large-cap growth name with historically strong gross margins and rising software and subscription revenue. Investors should note growth drivers such as cloud infrastructure expansion and artificial intelligence workloads, alongside risks including competition from incumbents, customer concentration, supply-chain pressures and capital-expenditure cyclicality. Valuation often reflects expected future growth, so prospective buyers should weigh price versus fundamentals. This information is educational only and not personal financial advice; investors should consider their own objectives, risk tolerance and seek independent guidance before acting.

ServiceNow (NOW)

ServiceNow (ticker: NOW) is a US-based enterprise software company that provides a cloud platform for digital workflows across IT, HR, customer service and security. The business is largely subscription-driven, which supports recurring revenue and generally high gross margins; its reported market capitalisation is about $195.8 billion. Investors watch ServiceNow for steady revenue growth, platform expansion into workflow automation and potential operating leverage as sales and R&D scale. That said, the shares often trade at a premium to legacy software peers, reflecting expectations of sustained growth. Risks include competition from large cloud vendors, sensitivity to corporate IT budgets and execution around new product roll-outs. This summary is for general, educational purposes only and is not personal financial advice; suitability depends on an individual’s objectives, time horizon and risk tolerance. Values can rise and fall and past performance does not guarantee future returns.

Comparison Snapshot

Key Financial Metrics

ANET

Metric

NOW

$157.11B

Market Cap

$179.48B

31.32%

Potential Profit

33.92%

Buy

Analyst Rating

Buy

Why It's Moving

Shares jump after Arista lifts 2025 revenue guide and projects faster AI growth — management signals sustained momentum

Earnings and guidance: Arista reported Q3 2025 results and on the conference call raised its full‑year 2025 revenue guidance to ~25%, up from its prior ~17% target, implying the business is accelerating versus earlier expectations and easing concerns about a slowdown.
AI revenue ramp: Management now expects AI-related revenue to grow sharply — management moved the 2026 AI target materially higher (from about $1.5B this year toward a ~$2.75B+ run rate next year), signaling AI will become a much larger share of revenue and underlining higher‑margin, secular demand drivers for Arista’s switching and software portfolio.
Longer-term outlook and product strength: Executives said Arista will exceed targets in both AI and Campus product lines and reiterated multiyear “mid‑teen” growth targets beyond 2026, indicating confidence in sustainable demand from hyperscalers and enterprise campus upgrades rather than a one‑time cyclical bump.

Sentiment:

🐃Bullish

ServiceNow Shareholders Greenlight 5-for-1 Stock Split, Boosting Accessibility for Investors.

Shareholders of record on December 16 will receive four additional shares per held share, distributed after market close, making shares more affordable to a wider investor base.
The split underscores ServiceNow's strong market position, with a $177B market cap and recent integrations like those with Microsoft and Figma enhancing its workflow platform.
Stock has held steady around $815-$830 recently, reflecting investor optimism in the firm's AI-driven business transformation capabilities.

Sentiment:

🐃Bullish

Shares jump after Arista lifts 2025 revenue guide and projects faster AI growth — management signals sustained momentum

Earnings and guidance: Arista reported Q3 2025 results and on the conference call raised its full‑year 2025 revenue guidance to ~25%, up from its prior ~17% target, implying the business is accelerating versus earlier expectations and easing concerns about a slowdown.
AI revenue ramp: Management now expects AI-related revenue to grow sharply — management moved the 2026 AI target materially higher (from about $1.5B this year toward a ~$2.75B+ run rate next year), signaling AI will become a much larger share of revenue and underlining higher‑margin, secular demand drivers for Arista’s switching and software portfolio.
Longer-term outlook and product strength: Executives said Arista will exceed targets in both AI and Campus product lines and reiterated multiyear “mid‑teen” growth targets beyond 2026, indicating confidence in sustainable demand from hyperscalers and enterprise campus upgrades rather than a one‑time cyclical bump.

Sentiment:

🐃Bullish

ServiceNow Shareholders Greenlight 5-for-1 Stock Split, Boosting Accessibility for Investors.

Shareholders of record on December 16 will receive four additional shares per held share, distributed after market close, making shares more affordable to a wider investor base.
The split underscores ServiceNow's strong market position, with a $177B market cap and recent integrations like those with Microsoft and Figma enhancing its workflow platform.
Stock has held steady around $815-$830 recently, reflecting investor optimism in the firm's AI-driven business transformation capabilities.

Sentiment:

🐃Bullish

Which Baskets Do They Appear In?

AI Infrastructure Stocks: Will Agentforce Drive Growth?

Salesforce has launched Agentforce 360, a new platform for AI-human collaboration, backed by a $15 billion investment to expand its AI innovation. This move creates a significant investment opportunity in the ecosystem of AI technology providers and infrastructure companies that power this new wave of enterprise AI.

Published: October 14, 2025

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Which Baskets Do They Appear In?

AI Infrastructure Stocks: Will Agentforce Drive Growth?

Salesforce has launched Agentforce 360, a new platform for AI-human collaboration, backed by a $15 billion investment to expand its AI innovation. This move creates a significant investment opportunity in the ecosystem of AI technology providers and infrastructure companies that power this new wave of enterprise AI.

Published: October 14, 2025

Explore Basket

Investment Analysis

Arista Networks

ANET

Pros

Arista Networks holds a leading market share in high-speed Ethernet switching, benefiting from strong technology leadership and steady share gains since 2004.
The company demonstrated strong financial performance with 28% year-over-year sales growth to $2.31 billion in Q3 2025 and positive earnings beats.
Arista Networks boasts a high return on equity (ROE) of 32.3%, reflecting efficient profitability and capital utilisation over recent years.

Considerations

Arista faces challenges in expanding beyond its core high-speed switching segment, limiting diversification in related networking markets.
Its reported stock valuation shows a high price-to-earnings ratio (around 41.7) and trades at a premium, indicating potentially stretched valuation.
Customer concentration risk is notable, with major clients like Microsoft and Meta accounting for roughly three-quarters of sales, potentially impacting revenue stability.

ServiceNow

NOW

Pros

ServiceNow has a strong market position as a provider of comprehensive workflow automation solutions for digital enterprises worldwide.
The company maintains a large market capitalization near $195 billion, indicating significant scale and investor confidence.
ServiceNow's growth drivers include expanding enterprise digital transformation initiatives and increasing adoption of cloud-based automation platforms.

Considerations

ServiceNow operates in a highly competitive technology market subject to rapid changes and evolving customer demands, posing execution risks.
The firm's premium valuation level may limit upside potential and increases sensitivity to shifts in growth expectations or economic downturns.
High dependency on continuous innovation and integration could lead to operational challenges and require sustained investment in R&D.

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About The Companies

Comparison Snapshot

Why It's Moving

Shares jump after Arista lifts 2025 revenue guide and projects faster AI growth — management signals sustained momentum

ServiceNow Shareholders Greenlight 5-for-1 Stock Split, Boosting Accessibility for Investors.

Shares jump after Arista lifts 2025 revenue guide and projects faster AI growth — management signals sustained momentum

ServiceNow Shareholders Greenlight 5-for-1 Stock Split, Boosting Accessibility for Investors.

Which Baskets Do They Appear In?

AI Infrastructure Stocks: Will Agentforce Drive Growth?

Which Baskets Do They Appear In?

AI Infrastructure Stocks: Will Agentforce Drive Growth?