Juniper Networks Reports Strong Q4 Results Amid AI-Driven Demand and Pending HPE Acquisition

Juniper's revenue and profit rises on strong demand for AI networks - SiliconANGLE

Juniper's revenue and profit rises on strong demand for AI networks Juniper Networks Inc. beat Wall Street's expectations and notched up a higher profit today as it posted its preliminary fourth quarter financial results. The report came as the company prepares to face down the U.S. Justice Department in a legal tussle over its pending $14 billion acquisition by its rival Hewlett-Packard Enterprise Co. The company, which sells networking gear such as routers and Ethernet switches as well as the software needed to run that equipment, reported earnings before certain costs such as stock compensation of 64 cents per share, easily beating the Street's 57 cent forecast. Revenue for the period rose 3% from a year earlier to $1.4 billion, just ahead of the $1.39 billion target. The positive numbers helped Juniper to grow its bottom line, with the company logging a net profit of $162 million in the quarter, up from $124.3 million one year ago. For the full year, fiscal 2024, it reported total sales of $5.07 billion, down 9% compared to the previous year. The stock remained flat in extended trading, after rising 3% prior to the report. Juniper Chief Executive Rami Rahim (pictured) said he was pleased with the company's momentum, noting that it grew its total product orders by double-digits on a sequential basis, and by more than 40% over the prior year. "We saw double-digit order growth in our enterprises and service provider verticals, which complemented another quarter of triple-digit growth in our cloud vertical, where we continue to benefit from customer's AI networking initiatives," the CEO said. "I believe these results reflect the strong execution of our teams and the strength of our AI-native networking solutions, which continue to win across customer verticals." For the last year, Juniper has been attempting to finalize a pending deal that will see it be acquired by networking industry leader HPE, but those plans were upended last month when the Justice Department announced it's suing to try and prevent the deal going ahead. The acquisition was first announced in January 2024, but the Justice Department says it's concerned about the impact it would have on competition in the Wireless LAN market, which spans devices such as Wi-Fi access points. In a lawsuit, Justice Department officials argue that Juniper and HPE together command a 70% market share in the WLAN segment, where they primarily compete with Cisco Systems Inc. It believes that the merger would significantly reduce competition in that industry, leading to higher prices for customers and less innovation. It pointed out that the two companies currently "compete fiercely to win business", and that this competition often benefits customers as they offer steep discounts in an attempt to outbid each other. In addition, the lawsuit says the competition between the firms incentivizes greater innovation, which may be stifled if the merger goes ahead. The two companies plan to fight the lawsuit and have said they plan to demonstrate that the merger will "provide customers with greater innovation and choice". The outcome of the trial remains unclear, but one thing that favors the companies is that they have already secured approval for the deal from European Union and U.K. regulators. The EU was also said to be concerned about its impact on the WLAN market, but ultimately concluded that customers still have a level of "countervailing buyer power" that will prevent significant price hikes.

Juniper Networks Beats Quarterly Revenue, Profit Estimates as AI Boom Fuels Demand

(Reuters) - Juniper Networks topped analysts' estimates for preliminary fourth-quarter revenue and profit on Tuesday, helped by steady demand for its networking gear amid the artificial intelligence boom. The Sunnyvale, California-based company provides technology that is used to optimize data traffic across large-scale networks such as those used by cloud and internet service providers. Cloud computing firms have been investing billions to optimize their data center infrastructure, aiding demand for networking solutions offered by companies such as Juniper. For the fourth quarter, the company expects to report revenue of $1.4 billion, compared with the average analyst estimate of $1.39 billion, according to data compiled by LSEG. On an adjusted basis, it expects to earn 64 cents per share, compared with 61 cents a year earlier and estimates of 58 cents. Last week, the U.S. Department of Justice sued to block Hewlett Packard Enterprise's $14 billion deal to acquire Juniper, arguing that it would stifle competition. The server maker said last year it would buy Juniper in an all-cash deal as it looks to spruce up its AI offerings. (Reporting by Priyanka.G and Akash Sriram in Bengaluru; Editing by Shilpi Majumdar and Shounak Dasgupta)