Juniper Networks (NYSE: JNPR) shares rose to $39.95 after the U.S. Department of Justice (DOJ) decided to settle its antitrust lawsuit, removing a significant barrier to Hewlett-Packard Enterprise's (NYSE: HPE)$14 billion all-cash acquisition of Juniper. As part of the settlement, HPE will sell its Instant On wireless networking division and provide limited access to Juniper's Mist AI source code, which is vital to its WLAN offerings.
Juniper (JNPR) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Tech stocks Hewlett Packard Enterprise Co (NYSE:HPE) and Juniper Networks Inc (NYSE:JNPR) are both rallying this morning, after the U.S. Department of Justice (DoJ) settled its lawsuit challenging the former's $14 billion all-cash acquisition of the latter.
Despite the uncertainty around the DoJ complaint, JNPR remains attractive, trading at an ~8% discount to HPE's $14 billion takeout offer. JNPR's strong Q1 performance, with 11% revenue growth and expanding margins, supports a bullish outlook even if the HPE acquisition falls through. If the acquisition is blocked, JNPR benefits from an $815 million breakup fee, adding ~$2.50/share in cash, mitigating potential downside.
JNPR reports higher revenues year over year in the first quarter of 2025, backed by solid demand in multiple verticals.
While the top- and bottom-line numbers for Juniper (JNPR) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Juniper Networks (JNPR) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.29 per share a year ago.
Juniper is expected to report top-line growth backed by healthy demand in the Cloud and Enterprise segments.
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Juniper (JNPR) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
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