As redes Arista prevêem o crescimento da receita seqüencial, enviando suas ações mais baixas

Networking company Arista Networks Inc. warned that it is likely to miss revenue forecasts in the current quarter, with its gross margin and operating margin set to decline.

The warning, which came after Arista delivered strong first-quarter results, sent the company’s shares down nearly 4% in extended trading.

The cloud networking company reported earnings before certain costs such as stock compensation of 64 cents per share, easily beating the 56 cents forecast. Revenue for the period rose 27% to $2 billion, just ahead of the $1.98 billion projection by analysts. Net income, meanwhile, came in at $813.8 million, up from $637.7 million in the year-ago quarter.

Arista president and chief executive Jayshree Ullal (pictured) said the rise of artificial intelligence and cloud computing continues to drive the network’s transformation. “We surpassed $2 billion in revenue for the first time in Q1 2025, despite the unknowns around tariffs,” she said.

However, the company is clearly bracing itself for a rough ride in the coming weeks, and has warned investors that it is unlikely to meet its expectations in the current quarter. Arista said it expects to generate $2.01 billion in sales, just missing Wall Street’s target of $2.02 billion. The forecast suggests that Arista’s revenue growth is about to stall, at least on a sequential basis.

The company also said its gross margin and operating margin numbers are likely to decline in the current sequential quarter. Gross margin came in at 64.1% in the first quarter, while operating margin was 47.8%, but it is forecasting a figure of just 63% and 46% in the current quarter.

The forecast was a major disappointment for investors, who had been hoping for a brighter outlook after two of Arista’s biggest customers — Meta Platforms Inc. and Microsoft Corp. — said last week they were doubling their commitments to spend billions of dollars on AI infrastructure. The tech giants’ plans eased concerns that AI spending budgets could be cut in response to U.S. President Donald Trump’s tariff policies.

Arista has been one of the biggest beneficiaries of the AI ​​boom, selling premium networking gear like switches and routers that facilitate high-speed communications between server racks in enterprise data centers. AI data centers need this, as the biggest workloads are powered by massive clusters of connected graphics processing units.

AI growth has helped Arista deliver a string of successive earnings and revenue gains in recent quarters, but the company’s cautious guidance suggests the run could soon come to an end.

During the quarter, Arista strengthened its AI networking offerings by adding new capabilities to its AI SMART EOS suite that aim to improve AI cluster performance and efficiency. New capabilities included a cluster load balancing tool that helps maximize AI workload performance with more consistent, low-latency network flows and universal observability from CloudVision Universal to help troubleshoot AI network issues.

In addition to its results, Arista’s board of directors said it approved an additional $1.5 billion in share repurchases.

After today’s after-hours decline, Arista shares have lost 17% of their value year to date.

Photo: Siliconangle