Executive Summary

Q1 delivered double-digit top-line and non-GAAP EPS growth year over year, with revenue of $1.280B (+11% y/y) and non-GAAP EPS of $0.43; sequentially, revenue declined 9% and margins compressed from Q4 highs .
Product orders were a notable positive, rising “nearly 40%” y/y, led by robust cloud demand tied to AI networking initiatives and improving enterprise momentum; management expressed confidence in growth prospects despite macro/tariff headwinds .
No financial guidance provided due to the pending HPE merger; the Board declared a $0.22 dividend and buybacks remain suspended per merger agreement .
Regulatory overhang is acute: DOJ is seeking to block the HPE transaction; trial begins July 9, 2025—this and the absence of guidance are key stock catalysts in the near term .

What Went Well and What Went Wrong

What Went Well

Demand inflection: “total product orders rising nearly 40% year-over-year,” with particularly strong AI-related cloud demand and accelerating enterprise orders across campus and data center .
Return to growth: Revenue grew 11% y/y to $1,280.2M and non-GAAP EPS grew 52% y/y to $0.43; non-GAAP operating margin expanded to 14.3% from 10.6% y/y .
Execution and visibility: CFO highlighted “healthy” revenue visibility into the June quarter and continued cost discipline, while noting actions to mitigate tariff impacts over time .

What Went Wrong

Sequential normalization: Revenue fell 9% q/q; GAAP operating margin declined to 7.0% (from 11.9% in Q4), and non-GAAP operating margin to 14.3% (from 19.2%) as seasonality and mix normalized from a strong Q4 .
Mixed vertical/geo performance: Service Provider revenue was flat y/y ($380.8M vs $381.9M), and EMEA declined y/y ($289.5M vs $311.1M), partly offsetting strength in Americas and Cloud .
Limited investor scaffolding: No financial guidance due to pending HPE deal; buybacks suspended; DOJ litigation overhang persists, heightening uncertainty for near-term estimate setting and capital return flexibility .

Financial Results

Headline P&L and Margins (chronological: oldest → newest)

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$1,148.9	$1,331.0	$1,404.1	$1,280.2
GAAP Diluted EPS ($)	($0.00)	$0.28	$0.48	$0.19
Non-GAAP Diluted EPS ($)	$0.29	$0.48	$0.64	$0.43
GAAP Operating Margin (%)	(1.2)%	7.1%	11.9%	7.0%
Non-GAAP Operating Margin (%)	10.6%	15.0%	19.2%	14.3%

Notes: Q1 2025 non-GAAP metrics exclude share-based comp, amortization, restructuring, merger-related charges, investment gains/losses, and tax effects (see reconciliation) .

Segment Revenue (Customer Solutions) – Q1 2025 vs Q1 2024

Customer Solution ($M)	Q1 2024	Q1 2025	y/y
Wide Area Networking	$350.4	$407.9	+$57.5
Data Center	$163.1	$177.2	+$14.1
Campus and Branch	$240.5	$294.2	+$53.7
Hardware Maintenance & Professional Services	$394.9	$400.9	+$6.0
Total	$1,148.9	$1,280.2	+$131.3

Revenue by Vertical – Q1 2025 vs Q1 2024

Vertical ($M)	Q1 2024	Q1 2025	y/y
Cloud	$250.0	$322.4	+$72.4
Service Provider	$381.9	$380.8	($1.1)
Enterprise	$517.0	$577.0	+$60.0
Total	$1,148.9	$1,280.2	+$131.3

Revenue by Geography – Q1 2025 vs Q1 2024

Region ($M)	Q1 2024	Q1 2025	y/y
Americas	$665.5	$810.6	+$145.1
EMEA	$311.1	$289.5	($21.6)
Asia Pacific	$172.3	$180.1	+$7.8
Total	$1,148.9	$1,280.2	+$131.3

KPIs and Balance Sheet Highlights

KPI	Q1 2024	Q4 2024	Q1 2025
Cash, Cash Equivalents & Investments ($M)	$1,534.9	$1,770.0	$1,970.4
Cash from Operations ($M)	$325.0	$279.8	$316.5
DSO (days)	64	75	65
Capital Expenditures ($M)	—	$27.2	$24.3
Dividend per Share ($)	—	$0.22 (declared for Mar 24 pay date)	$0.22 (payable Jun 23)
Total Assets ($M)	—	$10,008.0	$10,088.8
Total Liabilities ($M)	—	$5,223.8	$5,259.7
Total Equity ($M)	—	$4,784.2	$4,829.1

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial Guidance (Revenue, Margins, EPS)	FY2025	No guidance due to pending HPE transaction	No guidance due to pending HPE transaction	Maintained
Dividend	Q2 2025	$0.22/share declared for Mar 24, 2025 pay date	$0.22/share, payable Jun 23, 2025	Maintained
Share Repurchases	Ongoing	Suspended per HPE merger agreement	Suspended per HPE merger agreement	Maintained

Earnings Call Themes & Trends

Note: The company did not host a Q1 earnings call due to the pending HPE merger; CFO commentary was posted online .

Topic	Previous Mentions (Q3’24 and Q4’24)	Current Period (Q1’25)	Trend
AI/Cloud demand	Strong cloud orders supporting AI networking; Q3 orders +~60% y/y; Q4 cloud orders “triple-digit” y/y; backlog +~30% y/y .	Cloud vertical +$72M y/y to $322M; “robust demand” tied to AI; product orders +~40% y/y .	Improving
Enterprise momentum	Sequential and y/y order growth in Q3; broad momentum into Q4 .	Healthy enterprise order growth; Enterprise revenue +$60M y/y to $577M .	Improving
Service Provider	Y/y declines in 2024; mixed recovery Q3/Q4 .	Flat y/y ($380.8M vs $381.9M) .	Stabilizing
Tariffs / Supply chain	Ongoing caution cited in filings .	Tariff environment “remains dynamic”; actions underway to mitigate .	Watchlist
Margins	Q4 non-GAAP op margin 19.2%; step-up from Q3 15.0% .	Non-GAAP op margin 14.3% (seasonal/mix compression q/q) .	Seasonal normalization
Regulatory/M&A	HPE deal pendency; expected close late 2024/early 2025 (Q3); DOJ complaint filed Jan 30, 2025 (Q4) .	DOJ trial set for Jul 9, 2025; deal vigorously defended .	Elevated risk
Government/Compliance	—	Achieved FedRAMP Moderate authorization for Mist Government Cloud (federal channel enablement) .	Positive

Management Commentary

CEO: “Business momentum remained strong… total product orders rising nearly 40% year-over-year… robust demand from our cloud customers… investing to support AI initiatives… complemented by accelerated enterprise momentum… I remain confident in our growth prospects” .
CFO: “Return to double-digit revenue and non-GAAP EPS growth y/y… revenue visibility is healthy entering the June quarter… we continue to prudently manage costs. While the tariff environment remains dynamic, we are taking actions… to help mitigate the potential impact of tariffs over time” .
CEO (industry/customer momentum): On enabling native 800 Gbps backbones to support AI-era workloads: “GenAI workloads take network performance and capacity into a new paradigm, making a fast, reliable WAN an imperative for success” .

Q&A Highlights

No Q&A this quarter; the company did not host a conference call due to the pending HPE transaction. A press release and CFO Commentary were posted to the IR site .

Estimates Context

S&P Global consensus estimates: Data retrieval for Q1 2025 was unavailable via our S&P Global link at this time. As a result, we cannot present definitive beats/misses versus consensus for revenue or EPS this quarter.
Implications: With double-digit y/y revenue growth, strong cloud/enterprise orders, and management’s comment on “healthy” revenue visibility into June, sell-side models may reassess near-term revenue trajectory and margin cadence; however, the lack of formal guidance and DOJ trial timing introduce uncertainty around estimate dispersion .

Key Takeaways for Investors

AI networking is the growth engine: Robust cloud demand (AI-driven) and accelerating enterprise orders drove y/y growth; Cloud +29% y/y, Enterprise +12% y/y in Q1 .
Seasonal reset from strong Q4: Revenue down 9% q/q with margin normalization from Q4 peaks; monitor mix and pricing as orders convert to revenue through 1H25 .
Regulatory overhang is binary: DOJ trial (Jul 9) on HPE deal is a near-term catalyst; absence of guidance and suspended buybacks compress valuation-support tools until resolution .
Capital returns remain via dividend: $0.22/share declared; cash generation remained solid (CFO $316.5M) and cash/investments rose to $1.97B .
Watch EMEA and Service Provider: EMEA declined y/y; Service Provider flat y/y—trajectory here is key for balanced growth alongside Cloud/Enterprise .
Government vertical opportunity: FedRAMP Moderate authorization broadens federal cloud deployability for Mist; supports medium-term public sector funnel .
Execution focus: Cost discipline, tariff mitigation actions, and backlog/order conversion will drive operating leverage as AI networking ramps .

Supporting Detail: Non-GAAP Adjustments (Q1 2025)

Key exclusions include share-based compensation ($62.6M), amortization of intangibles ($10.4M), restructuring ($10.7M), merger-related charges ($9.5M), and investment-related items, partially offset by tax effects (income tax effect of non-GAAP exclusions: ($18.0)M). These adjustments bridge GAAP net income of $64.1M to non-GAAP net income of $147.2M and non-GAAP diluted EPS of $0.43 .

Additional Product/Technology Milestones (Q2-to-date for context)

AI-Native operations: New Mist AI enhancements (Marvis Minis client-to-cloud twinning; Marvis Actions dashboard; Marvis Client telemetry) underscore leading AIOps capability—potential demand driver in campus/branch and WAN .
800 Gbps networking: Joint milestone with CENIC/SDSU demonstrates Juniper PTX10002 and 800ZR optics capabilities for AI-era backbones, reinforcing WAN/core competitive positioning .

JUNIPER NETWORKS INC (JNPR)·Q1 2025 Earnings Summary