Juniper Networks Exceeds Expectations and Boosts Acquisition by Hewlett Packard Enterprise

Juniper Networks has surpassed Wall Street's forecasts for revenue and profit in the third quarter. The network equipment provider from Sunnyvale, California, is benefiting from strong demand from cloud computing companies, which are currently investing heavily in artificial intelligence infrastructure. In the third quarter, Juniper posted revenue of $1.33 billion, significantly above the $1.26 billion expected by analysts, according to data compiled by LSEG. "We experienced particularly strong orders from our cloud customers in the third quarter to support front-end and back-end AI network investments," explained CEO Rami Rahim. Adjusted earnings amounted to 48 cents per share, compared to the estimated 44 cents per share. These positive results come at a strategically important time for Juniper, as Hewlett Packard Enterprise announced in January that it intends to acquire the company for around $14 billion. To finance this acquisition, Hewlett Packard Enterprise recently announced a mandatory conversion of preferred shares worth $1.35 billion. Juniper refrained from providing an annual forecast, as the completion of the acquisition is expected by the end of 2024 or early 2025.