Arista Networks forecasts second-quarter revenue above estimates on...
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May 6 (Reuters) - Arista Networks forecast second-quarter revenue above Wall Street estimates following upbeat first-quarter results on Tuesday, betting on growing demand for its networking equipments amid the artificial intelligence boom.
However, เว็บแทงบอลออนไลน์ shares of the Santa Clara, California-based company fell about 7% in extended trading, amid investor concerns over broader market conditions and renewed tariff fears.
The company, which has a market value of $114 billion, has seen its stock decline about 18% so far this year, pressured by ongoing tariff-related worries.
Arista Networks projects second-quarter revenue of about $2.1 billion, compared with analysts' estimates of $2.02 billion, according to data compiled by LSEG.
Demand for Arista's products, such as ethernet switches and routers used in data centers, has surged as companies increase their investments in artificial intelligence infrastructure.
Moreover, the ongoing tariff war could help domestic companies such as Arista secure additional contracts with hyperscale clients, potentially boosting their market share and revenue growth significantly.
"We surpassed $2 billion in revenue for the first time in Q1 2025 despite the unknowns around tariffs," said Chief Executive Officer Jayshree Ullal.
The company's customers include some of the largest cloud service providers, such as Microsoft and Meta Platforms , which accounted for about 20% and 15% of its total revenue, respectively, in 2024.
For the quarter ended March 31, Arista's revenue reached $2 billion, compared to analysts' estimates of $1.97 billion.
On an adjusted basis, the company earned 65 cents per share in the first quarter, beating analysts' estimate of 59 cents per share.
(Reporting by Priyanka.G in Bengaluru; Editing by Mohammed Safi Shamsi)
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