Feb 12 (Reuters) – Networking equipment provider Arista Networks forecast annual revenue above Wall Street estimates on Thursday, betting on steady demand for its electronic hardware amid the expanding presence of data centers, sending its shares up more than 17% in extended trading.
Demand for Arista’s ethernet network switches and routers has surged as companies increase their investment in AI infrastructure.
Analysts have noted that the company has a strong exposure to major cloud and AI customers, whose capex is expected to keep growing sharply, creating a bigger demand backdrop.
Arista Networks makes the high-speed computer networking equipment that powers big data centers, serving cloud and AI titans such as Microsoft and Meta, along with enterprise, financial services and specialized cloud provider customers.
The company forecast first-quarter revenue of about $2.6 billion, above the analysts’ average estimate of $2.45 billion, according to data compiled by LSEG.
It reported a fourth-quarter revenue of $2.49 billion, compared with estimates of $2.38 billion. Adjusted profit came in at 82 cents per share, beating estimates of 76 cents per share.
(Reporting by Kritika Lamba and Anhata Rooprai in Bengaluru; Editing by Alan Barona)
