Particle.news
Download on the App Store

Arista Posts Q1 Beat and Higher Q2 Outlook as Shares Drop After Hours

The sharp selloff points to lofty expectations for AI-fueled growth outpacing the company’s guidance.

Overview

  • Arista Networks reported revenue of $2.71 billion, up 35.1% year over year, with earnings of $0.87 per share that topped analyst estimates.
  • The company guided second-quarter revenue to $2.8 billion and adjusted earnings to $0.88 per share, both modestly above the Street consensus cited by Benzinga Pro.
  • The stock fell about 13% in after-hours trading to roughly $146.65 following the report, according to Benzinga.
  • Benzinga said the drop likely reflects investors hoping for a larger outlook despite the double beat on results and guidance.
  • Arista also announced AI data center gear, including XPO liquid-cooled pluggable optics and a universal AI spine, which it says can cut networking racks by up to 75% and save up to 44% of floor space.