By Katherine Hamilton

Arista Networks had higher profit and revenue in the third quarter, but its sales guidance gave investors pause.

The cloud services provider expects revenue to be $2.3 billion to $2.4 billion, while analysts were projecting $2.33 billion. The outlook would mark a slowdown of sales growth to less than 1%, compared with 5% growth in the third quarter and 10% the quarter before.

Arista shares fell 9% to $139.83 in after-hours trading.

Executives told analysts during a Tuesday call that the slowdown is more related to shipments than demand. While demand remains strong, the company can't always ship everything it needs to keep up with demand, management said.

Margins could also face some pressure if its product mix tilts too heavily toward cloud and AI, executives said.

The cloud services company posted a profit of $853 million, or 67 cents a share, in the quarter ended Sept. 30, compared with $748 million, or 58 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were 75 cents, ahead of the 72 cents anticipated by analysts, according to FactSet.

Revenue rose 27% to $2.31 billion. Analysts surveyed by FactSet forecast revenue of $2.26 billion.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

November 04, 2025 18:51 ET (23:51 GMT)

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