The Enterprise Base, and How Far It Has GotNarrow moat
Arista Networks (ANET) — moat facet
Diversification is being outrun by the concentration it is meant to dilute.
Arista's stated strategy for reducing dependence on two buyers is to sell to everybody else. Its filing describes diversifying across media and entertainment, healthcare, oil and gas, education, manufacturing and industrial sectors1, and the enterprise business has grown into a substantial line of its own.
It is working slowly, and the arithmetic explains why. When the two largest customers grow at hyperscaler capital-spending rates, enterprise revenue has to grow faster still merely to hold concentration constant — and in 2025 it did not: the two customers went from 35% of revenue to 42%. Diversification is being outrun by the concentration it is meant to dilute.
The strategic value is nonetheless real and is about revenue quality rather than quantity. Enterprise customers buy on longer cycles, at better margins, with support and services attached, and they do not cancel a quarter's orders because a data-centre build slipped. That is the ballast Arista lacks.
Watch enterprise revenue as a percentage of the total each year. That single number measures whether the strategy is succeeding, and it has to rise faster than the titans grow for the answer to be yes.
Arista is genuinely diversifying its enterprise base across media, healthcare, energy, education and manufacturing — and it is losing the race. Titan revenue grew fast enough that the two largest customers went from 35% to 42% of the total. The strategy is right and the arithmetic is against it while hyperscaler capex compounds.
If the enterprise base were outrunning the titans, this share would be rising; it has fallen for two years.
- ReportedArista describes expanding across media and entertainment, healthcare, oil and gas, education, manufacturing and industrial sectors.Arista Networks Form 10-K, FY2025 — two customers accounted for more than 10% of total revenue in each of the last three years; sales to one end customer represented 16%, 15% and 21% of total revenue and sales to the other end customer represented 26%, 20% and 18% of total revenue for the years ended December 31, 2025, 2024 and 2023 respectively; the company notes unpredictability in the timing and volume of large customer orders, that large customers may receive lower pricing terms due to volume discounts or may elect to re-assign allocations to multiple vendors based upon specific requirements, and that it continues to diversify its enterprise customers across media and entertainment, healthcare, oil and gas, education, manufacturing and industrial sectors — FY2025 (ended December 31, 2025) · publ. February 17, 2026 · source ↗