Shares of Arista Networks (NYSE:ANET) tumbled 5.09% in after-hours trading on Tuesday, despite reporting better-than-expected earnings for the first quarter of 2025. The sharp decline comes as investors digest the company's latest financial results and forward-looking guidance.

Arista Networks reported quarterly earnings of $0.65 per share, surpassing analyst estimates of $0.60 by 8.33%. This represents a significant 30% increase from the $0.50 per share reported in the same period last year. However, the company's quarterly sales of $2.00 billion fell short of the analyst consensus estimate of $2.02 billion by 0.78%, although it still marked a 27.63% year-over-year increase.

While the earnings beat was impressive, investors appear to be focusing on Arista's guidance for the second quarter of 2025. The company expects Q2 revenue to be around $2.1 billion, which may have fallen short of market expectations. This forward-looking statement seems to be the primary driver behind the stock's after-hours plunge, as traders reassess the company's growth prospects in the competitive networking equipment market.