UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________ to_________ | --- | --- | --- | |----------------------------------------------------------------|----------------------------------------------- ...

Financial Performance - Net revenues for Q3 2024 were $1,331.0 million, a decrease of 5% year-over-year, but an increase of 12% sequentially[3]. - GAAP net income was $92.6 million, representing a 22% increase year-over-year and a 172% increase sequentially, resulting in diluted net income per share of $0.28[4]. - Total net revenues for the three months ended September 30, 2024, were $1,331.0 million, a decrease of 4.7% compared to $1,397.8 million for the same period in 2023[18]. - Net income for the three months ended September 30, 2024, was $92.6 million, compared to $76.1 million in the same period last year, with diluted net income per share rising to $0.28 from $0.24[22]. - Net income for the nine months ended September 30, 2024, was $125.9 million, down from $185.9 million in the same period of 2023, representing a decrease of about 32.4%[36]. Revenue and Orders - Total product orders grew nearly 60% year-over-year, with strong demand particularly from cloud customers[5]. - The Americas region generated $844.1 million in revenues for the three months ended September 30, 2024, compared to $836.5 million in the previous year[21]. - The Cloud segment reported revenues of $349.6 million for the three months ended September 30, 2024, an increase from $269.6 million in the same period last year[20]. Operating Metrics - Non-GAAP operating margin was 15.0%, a decrease from 17.5% in Q3 2023, but an increase from 10.9% in Q2 2024[3]. - Operating income for the three months ended September 30, 2024, increased to $94.1 million, compared to $87.6 million for the same period in 2023, resulting in an operating margin of 7.1%[22]. - The company reported a non-GAAP operating income of $200.0 million for the three months ended September 30, 2024, compared to $129.7 million in the same period last year[22]. Cash Flow and Investments - Net cash flows provided by operations for Q3 2024 were $192.2 million, down from $329.2 million in Q3 2023[7]. - Cash flows from operating activities decreased to $508.3 million from $863.7 million, a decline of approximately 41.1%[36]. - Total cash, cash equivalents, and investments as of September 30, 2024, were $1,562.9 million, up from $1,418.0 million a year ago[6]. - Long-term investments rose significantly from $116.8 million to $331.2 million, an increase of about 184.5%[35]. Expenses - Research and development expenses for the three months ended September 30, 2024, were $290.6 million, slightly up from $288.5 million in the same period last year[18]. - Total operating expenses for the three months ended September 30, 2024, were $679.3 million, down from $722.8 million in the same period last year[18]. - Share-based compensation expense increased to $211.4 million from $197.6 million, an increase of approximately 6.4%[36]. Dividends and Stockholder Equity - A cash dividend of $0.22 per share has been declared, to be paid on December 23, 2024[9]. - Total stockholders' equity increased from $4,492.7 million to $4,642.7 million, an increase of approximately 3.3%[35]. Future Outlook and Guidance - The proposed merger with Hewlett Packard Enterprise is expected to close in late 2024 or early 2025, with an equity value of approximately $14 billion[2]. - Juniper Networks will not provide financial guidance for 2024 due to the pending transaction with HPE[10]. - The company anticipates continued focus on market expansion and new product development in the upcoming quarters[24]. Financial Adjustments and Transparency - The company plans to continue providing non-GAAP financial measures to enhance transparency and comparability for investors[26]. - The company excluded acquisition-related charges and other unique items from its non-GAAP financial measures to better reflect ongoing operations[28][30]. - The company reported a loss on privately-held investments of $13.1 million, down from $92.0 million in the previous year[36].

Group 1: Juniper Networks and Thai Airways Partnership - Thai Airways is upgrading its network infrastructure using Juniper's AI-Native Networking Platform to enhance efficiency and reliability [1] - The airline is the first in Thailand to deploy Wi-Fi 6E technology with Juniper's AP45 access points and EX Series Ethernet switches [2] - Mist AI technology is expected to reduce network-related trouble tickets by up to 90% through proactive issue resolution [3] Group 2: Operational Improvements and Future Plans - The Marvis Virtual Network Assistant helps Thai Airways' IT team quickly identify and resolve network issues, leading to a significant reduction in user complaints and operational time [4] - Thai Airways is considering expanding Juniper's solutions to its hubs at Thailand's major international airports, potentially increasing the scale of the network [5] Group 3: Juniper's Market Position and Growth - Juniper's AI-native networking solutions are gaining traction as companies focus on digital transformation, with notable implementations by JATCO Ltd. and Seoul Semiconductor [6][7] - The rising demand for Mist AI systems is expected to boost Juniper's revenues amid a network modernization trend [7] - Juniper is set to be acquired by Hewlett Packard Enterprise for approximately $14 billion, with the transaction expected to finalize in late 2024 or early 2025 [8] Group 4: Stock Performance - Juniper currently holds a Zacks Rank 3 (Hold), with shares gaining 48.7% over the past year, compared to the sub-industry's growth of 69.4% [9]

Core Viewpoint - Analysts project that Juniper Networks (JNPR) will report quarterly earnings of $0.44 per share, reflecting a 26.7% decline year over year, with revenues expected to reach $1.27 billion, down 9.3% from the same quarter last year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock performance [2] Key Metrics Overview - Analysts estimate 'Net revenues- Hardware Maintenance and Professional Services' at $412.56 million, indicating a year-over-year change of +0.8% [4] - 'Net revenues- Campus and Branch' are projected at $322.25 million, reflecting a decline of 15.8% year over year [4] - 'Net revenues- Data Center' is expected to reach $171.99 million, showing a +1.2% change from the previous year [4] Revenue Projections - 'Net revenues- Wide Area Networking' is estimated at $400.09 million, down 8.3% from the prior year [5] - 'Revenue- Service' is projected to be $488.90 million, indicating a decline of 2.2% year over year [5] - 'Revenue- Product' is expected to reach $827.18 million, reflecting a year-over-year change of -7.9% [5] Additional Revenue Insights - 'Revenue- Service Provider' is forecasted at $383.78 million, down 8.4% year over year [6] - 'Revenue- Enterprise' is expected to be $631.19 million, indicating an 11% decline from the previous year [6] - 'Revenue- Cloud' is projected at $265.62 million, reflecting a -1.5% change year over year [6] Gross Margin Estimates - 'Non-GAAP Gross margin- Service' is expected to reach $346.54 million, compared to $363.70 million from the previous year [7] - 'Non-GAAP Gross margin- Product' is projected at $437.02 million, down from $468.60 million year over year [7] Stock Performance - Shares of Juniper have changed by +0.4% in the past month, compared to a +1.8% move of the Zacks S&P 500 composite, with a Zacks Rank 3 (Hold) indicating expected performance in line with the overall market [7]

Core Viewpoint - Juniper Networks, Inc. is expected to report lower revenues for Q3 2024 due to demand softness across several business segments, despite some positive developments in AI-driven networking solutions and partnerships [1][6]. Revenue Expectations - Total revenue for the September quarter is estimated at $1.27 billion, reflecting a decline from $1.4 billion in the same quarter last year [8]. - Revenue from the Cloud vertical is projected at $265.62 million, down from $269.6 million year-over-year [7]. - The Service Provider segment is expected to generate $383.78 million, a decrease from $418.8 million year-over-year [7]. - Enterprise business revenues are anticipated to be $631.19 million, down from $709.4 million year-over-year [7]. Earnings Estimates - The consensus estimate for adjusted earnings per share is 44 cents, a decline from 60 cents reported in the prior-year quarter [8]. - The Earnings ESP for Juniper is 0.00%, indicating no expected earnings beat this time [10]. Strategic Developments - Juniper has launched a multi-vendor lab under its Ops4AI initiative to enhance AI workload management and validate AI data center solutions [4]. - The company introduced new products, including AP47 access points and high-power EX series switches, to leverage Wi-Fi 7 capabilities [4]. - A partnership with Quantum Bridge Technologies aims to develop the first quantum-safe communication solution, which is expected to positively impact upcoming results [5]. Market Challenges - The company is facing declining demand trends and macroeconomic headwinds affecting customer spending [6]. - Intensifying competition in its served markets is likely to hinder top-line growth during the quarter [6].

Juniper Networks, Inc. (JNPR) recently announced that the Norwegian Broadcasting Corporation (“NRK”) will leverage the former’s state-of-the-art MPLS-based, automated Wide-Area Network (WAN) to transition to an IP-based network infrastructure. Being a state-owned radio and television broadcasting company in Norway, NRK serves approximately 90% of the population daily through its three national TV channels, 14 radio stations and various digital services. The network modernization initiatives were driven by t ...

Juniper Networks, Inc. (JNPR) recently announced that JATCO Ltd., one of the major players in the automotive transmission industry, has selected JNPR’s AI native networking portfolio to upgrade its WiFi network. JNPR’s offerings include Mist AI, which harnesses data science and machine learning capabilities to ensure network performance optimization.JATCO has deployed Juniper AP43 and Juniper AP63 Access Points to leverage the power of Juniper purpose-built AIOps(Artificial Intelligence for IT Operations). ...

Juniper Networks, Inc. (JNPR) recently announced that Seoul Semiconductor has deployed its cutting-edge AI-Native Networking Platform. The deployment by this South Korea-based lighting technology firm aims to provide dependable and measurable wired and wireless access services that boost employee productivity while cutting operational costs. Central to this initiative is Juniper’s sophisticated AI engine, Mist AI, which utilizes advanced AIOps and a microservices cloud to enhance both user and operator expe ...

Sustainability Leaders in Telecommunications - KDDI, Deutsche Telekom, and Verizon are the top three mobile operators with the most impactful sustainability initiatives [1] - KDDI leads in sustainability due to its focus on cloud technologies and circular economy strategies, recycling over 99% of disused network hardware in 2023 [1] - KDDI has reduced carbon emissions and energy consumption through automation, NFV (network function virtualisation), and optimised datacentre operations [1] Cloud Computing as a Key Sustainable Technology - Cloud computing is identified as the most impactful network technology for reducing carbon emissions, costs, and energy consumption [3] - The report predicts that cloud platforms will enable operators to reduce global energy consumption by over 2,000TWh in 2025 [3] - Cloud computing allows dynamic resource allocation in real-time, significantly reducing energy consumption compared to traditional networks [3] Research Suite Overview - The research suite provides a comprehensive assessment of network operator sustainability initiatives, including market analysis and forecasts for 60 countries [4] - It includes a five-year dataset, a 'Competitor Leaderboard', and an examination of current and future market opportunities [4] - Juniper Research has over two decades of experience providing market intelligence and advisory services to the global telecommunications sector [4]

Juniper Networks, Inc. (JNPR) recently unveiled several cutting-edge advancements in its data center networking solutions to enhance network visibility and improve user experience. The company’s comprehensive product suite includes a vast array of offerings including QFX Series Switches, EX Series Switches, PTX and ACX Series Routers, Juniper Apstra data center assurance software and the Marvis Virtual Network Assistant. The company’s AI native networking platform delivers unique capabilities such as proact ...