Sustainable Growth Advisers, LP - U.S. Large Cap Growth on Arista Networks

SGA initiated Arista Networks because it sees durable growth from the continued buildout of hyperscale, cloud, and AI networking infrastructure. Arista's Extensible Operating System provides a common software architecture across its switching portfolio, enabling scalability, automation, reliability, and operational simplicity. The company has maintained gross margins of roughly 60% to 65% and non-GAAP operating margins above 40%, which SGA views as evidence of meaningful pricing power. Although most revenue comes from hardware, repeatability is supported by data-center expansion, technology refresh cycles, and increasing network complexity. Once deployed at hyperscalers, Arista becomes deeply embedded in operations, creating meaningful switching costs. Ongoing transitions from 100G to 400G and 800G architectures provide an additional structural growth driver.