Shares of Arista Networks surged 10.77% in after-hours trading on Tuesday, following the release of its second-quarter earnings report that significantly exceeded Wall Street expectations.

The company reported adjusted earnings per share of $1.02, up 40% year-over-year, beating the consensus estimate of $0.89. Revenue jumped 38% to $3.04 billion, surpassing the $2.82 billion forecast. The beat was driven by robust demand for its high-speed AI networking platforms, including 1.6 Tbps AI fabric and Etherlink switches, as hyperscale cloud providers expand their AI data center infrastructure.

Looking ahead, Arista provided third-quarter guidance of approximately $3.3 billion in revenue and adjusted EPS of $1.06 to $1.08, both well above analyst estimates of $2.94 billion and $0.92, respectively. The upbeat outlook underscores the company's position as a key beneficiary of the AI-driven networking supercycle, with customers viewing networking as the "central nervous system" for AI compute clusters.