Arista Networks vs. Figma: Which Technology Stock Is a Better Buy in 2026?

The article compares Arista Networks and Figma Inc., two technology stocks, to determine which offers a better investment opportunity in 2026.

Arista Networks (ANET) provides data-driven networking platforms for large data centers and AI providers, generating revenue from high-speed switching and routing capabilities. The company reported $9.0 billion in revenue and $3.5 billion in net income in FY 2025, with a 39% net margin. Arista Networks has no debt on its balance sheet and maintains a strong liquidity position with a 3.0x current ratio. Its free cash flow for FY 2025 was $4.3 billion.

Figma (FIG) is a cloud-based design platform used by millions of developers, generating most revenue through per-seat subscriptions. The company reported $1.1 billion in FY 2025 revenue, a 41% increase from the previous year, but also reported a $1.3 billion net loss and an 118% net margin. Figma carries debt at 0.1x its shareholder equity and has a 2.6x current ratio. The company's free cash flow for FY 2025 was $246.2 million.

Arista Networks faces risks from its reliance on Broadcom Inc. for merchant silicon switching chips and potential market disruptions due to AI-focused networking equipment competition. Figma depends on Amazon for hosting infrastructure and must navigate the European Union AI Act and other regulatory changes.

In terms of valuation, Figma offers a lower entry point based on sales, while Arista Networks provides a more established valuation based on future earnings estimates. Wall Street predicts strong revenue growth for Arista (nearly 40% for fiscal 2026) and hopes for a reduction in net losses, while Figma is expected to see a 39% revenue growth and a potential drop in net loss to $560 million.

Overall, the article concludes that Arista Networks is the better buy in 2026 due to its growing profitability and strong market demand for its products.