(Reuters) -Juniper Networks reported an 11% rise in first-quarter revenue on Thursday, driven by steady demand from cloud customers for its networking equipment, fueled by the artificial intelligence boom.
The Sunnyvale, California-based company posted revenue of $1.28 billion for the quarter ended March 31, in line with analyst forecasts, according to LSEG data. On an adjusted basis, Juniper earned 43 cents per share, also in line with estimates.
Companies are investing heavily in upgrading their networking infrastructure to provide advanced services and cater to a growing number of customers, benefiting the likes of Juniper and Cisco Systems.
In addition to cloud customers, demand is being “complemented by accelerated enterprise momentum, where we experienced healthy order growth across both campus and data center use cases,” said CEO Rami Rahim.
“While the tariff environment remains dynamic, we are taking actions which we expect will help mitigate the potential impact of tariffs over time,” CFO Ken Miller said.
Juniper is in the process of being acquired by Hewlett Packard Enterprise for $14 billion in cash, but the U.S. Department of Justice has sued to block the deal, arguing the deal would reduce competition, raise prices and reduce innovation.
In February, Juniper denied the allegations, saying that the complaint does not correctly represent the market dynamics for wireless network solutions.
(Reporting by Juby Babu in Mexico City; Editing by Tasim Zahid)
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