(Reuters) – Arista Networks forecast second-quarter revenue above Wall Street estimates on Tuesday, anticipating higher demand for its cloud networking gear from a boom in artificial intelligence applications and chips. The results underscore strong spending on Arista’s products such as Ethernet switches and routers from clients, including Microsoft and Meta Platforms, as they grow their […]
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Arista Networks projects Q2 revenue above estimates
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(Reuters) – Arista Networks forecast second-quarter revenue above Wall Street estimates on Tuesday, anticipating higher demand for its cloud networking gear from a boom in artificial intelligence applications and chips.
The results underscore strong spending on Arista’s products such as Ethernet switches and routers from clients, including Microsoft and Meta Platforms, as they grow their cloud and data center infrastructure to support AI needs.
The company forecast second-quarter revenue in the range of $1.62 billion to $1.65 billion, the mid-point of which was higher than the LSEG estimate of $1.62 billion.
Santa Clara, California-based Arista’s results contrast with those of peer Juniper Networks, which reported downbeat revenue last month due to sluggish demand for the networking gear maker’s products in an uncertain economy.
Arista’s revenue for the quarter ended March 31 rose 2% to $1.57 billion, beating analysts’ estimate of $1.55 billion.
The company reported net income of $637.7 million, compared with $436.5 million a year ago.
On an adjusted basis, the company earned $1.99 per share, compared with $1.43 apiece in the previous year.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)