Arista Networks exceeds expectations and plans stock split

The Californian network specialist Arista Networks has forecast a revenue for the fourth quarter that exceeds Wall Street's expectations. This is due to the increasing expansion of data centers driven by the AI boom, which is boosting demand for the company's network equipment. Arista expects revenue between $1.85 billion and $1.90 billion for the current quarter, which is above the average analyst estimates of $1.81 billion. Despite these positive prospects, shares fell 6% after hours, even though they had gained 83% over the year due to increased demand for AI technologies. The growing investments in AI, which require significant computing capacity, have boosted demand for Arista's products such as Ethernet switches and routers. Competitor Juniper Networks also recently exceeded expectations with its quarterly results, supported by strong demand from cloud computing companies. To facilitate access for a broader group of investors, Arista has approved a four-to-one stock split, effective December 4. For the third quarter, the company reported a profit of $747.9 million or $2.33 per share, representing a significant increase compared to the previous year. With adjusted earnings of $2.40 per share, Arista also exceeded estimates of $2.08. Revenue rose by 7.1% to $1.81 billion, surpassing the expected $1.74 billion. While the adjusted gross margin decreased to 64.6%, it still increased compared to the previous year.