Juniper Networks Exceeds Q3 Revenue and Profit Forecasts

Juniper Networks, which is set to be acquired by Hewlett Packard Enterprise, exceeded Wall Street's earnings and revenue expectations for the third quarter on Thursday. The Sunnyvale, California-based company is experiencing an increase in demand for networking equipment, particularly from cloud computing companies developing AI infrastructures.

The company's third-quarter revenue reached $1.33 billion, surpassing the expected $1.26 billion according to LSEG data. As CEO Rami Rahim noted, Juniper's performance this quarter was driven by significant orders for AI networking initiatives from cloud customers.

Juniper reported an adjusted earnings per share of 48 cents for the quarter ending September 30, above the anticipated 44 cents per share.

In January, Hewlett Packard Enterprise announced its intention to acquire Juniper for approximately $14 billion. Last month, the AI server manufacturer reported a $1.35 billion mandatory convertible preferred stock issuance to finance the acquisition.

Due to the acquisition process, expected to be completed between late 2024 and early 2025, Juniper decided not to provide annual guidance.