Arista Networks (ANET) shares tumbled in extended trading Thursday as thꦺe company reported shrinking margins, despite profits that topp🌞ed Wall Street’s expectations.

The cloud networking giant saw third-quarter revenue grow 7% year-over-year to $1.81 billion, above the analyst consensus from Visible Alpha. Net income came in at $747.9 million or $2.33 per share, up from $545.3 mi🌠llion or $꧃1.72 per share a year earlier and above projections.

However, Arista's 澳洲幸运5官方开奖结果体彩网:gross margin in the third quarter was 64.2%, down slightly from 64.9% a quarter earlier. In the fourth quarter, Arista said it expects gross margiꦐns to fall to between 63% and 🍌64%.

Arista forecast fourth-quarter revenue of $1.85 billion to $1.9 billion, ahead of the consensus estimate compiled by Visible Alpha. Some investors may have had higher expectations. Ahead of Thursday's results, Citi analysts had projected 28% growth in the fourth quarter, anticipating accelerating cloud spending driven by AI demand.

Arista Networks Announces 4-for-1 Stock Split

Arista also announced a four-for-one 澳洲幸运5官方开奖结果体彩网:stock split, meant to make its stock accessible to more investors, with split-adjusted trading set to start on Dec. 4. The company s🔥aid its stockholders will receive three additional shares for every one share they hold. The split will reduce the price of each share by a factor of four, but won't change the total value of investors' holdings.

Shares of Arista fell more than 7% in extended trading Thursday following the release. They were up about 83% for the year through Thursday's close.