05:01 PM EDT, 05/07/2024 (MT Newswires) -- Arista Networks ( ANET ) late Tuesday reported stronger-than-expected results for the first quarter, with gains recorded in both product and service revenue.

Adjusted per-share earnings rose to $1.99 from $1.43 a year earlier, compared with the consensus on Capital IQ of $1.74. Revenue for the quarter ended March 31 increased 16% year over year to $1.57 billion, compared with the Street's view of $1.55 billion.

The cloud networking company's stock was up 4% in after-hours activity.

Product sales increased to $1.33 billion from $1.17 billion, while service revenue rose to $242.5 million from $179.3 million. Adjusted gross margin improved to 64.2% from 60.3% a year ago.

Arista said it expects second-quarter revenue between $1.62 billion and $1.65 billion, versus analyst consensus of $1.62 billion. Non-GAAP gross margin is expected at about 64%.

Arista's board on Friday authorized an additional program to repurchase up to $1.2 billion in common stock, the company said.

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