Arista Networks' stock experienced a sharp after-hours plunge of 11.30% on Tuesday, following the release of the company's first-quarter financial results after the market close.

The networking equipment maker reported revenue of $2.71 billion and adjusted earnings of 87 cents per share, both exceeding analyst expectations. For the second quarter, the company provided guidance that was also slightly ahead of estimates, forecasting revenue of approximately $2.8 billion and adjusted earnings of about 88 cents per share.

Despite the double beat and upside guidance, investors focused on the company's projection for adjusted operating margin of 46% to 47% in the second quarter, which would be down from 48.8% in the same period last year. Analysts noted that the stock had rallied nearly 30% year-to-date, potentially pricing in expectations for a stronger beat and guidance raise than what was delivered, leading to a "sell the news" reaction in extended trading.