Juniper Networks Reports Strong Q3 Results Amid Acquisition by HPE

(Reuters) – Juniper Networks (NYSE:JNPR), currently in the process of being acquired by Hewlett Packard Enterprise (NYSE:HPE), surpassed Wall Street's expectations in both revenue and profit for the third quarter, driven by high demand for its networking equipment.

Based in Sunnyvale, California, Juniper is seeing robust interest from cloud computing companies that are heavily investing to enhance their AI infrastructure.

For Q3, Juniper reported revenue of $1.33 billion, exceeding analysts' expectations of $1.26 billion, as per LSEG data.

"We saw particularly robust orders from our cloud customers during Q3 in support of front-end and back-end AI networking initiatives," said Chief Executive Rami Rahim in a statement.

On an adjusted basis, the company earned 48 cents per share for the quarter ending September 30, surpassing estimates of 44 cents per share.

In January, Hewlett Packard Enterprise announced plans to acquire Juniper for approximately $14 billion. Last month, the AI server maker revealed a $1.35 billion mandatory convertible preferred stock offering to finance the acquisition.

Juniper noted on Thursday that it would not provide an annual forecast due to the ongoing takeover, which is projected to finalize by late 2024 or early 2025.