UBS previews data center demand for Arista, Celestica, Extreme, Lumentum

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Summary · why it matters

UBS previewed data center demand for Arista Networks, Celestica, Extreme Networks, and Lumentum ahead of the upcoming earnings period. Analyst David Vogt noted that an acceleration in data center infrastructure investments over the past three months should drive strong demand and backlog, though increasing lead times for key components like networking silicon and indium phosphide could temper revenue upside. For Arista, deepening hyperscaler relationships are expected to push revenue and earnings above estimates, with a CY26 revenue growth guide increase to 33% from 27.5%. Celestica's supply chain headwinds have been remediated, and robust ethernet switch demand at Meta and Amazon could drive revenue 3% to 4% above the forecast to roughly $4.5 billion, with potential EPS upside of about 5% to $2.40. Extreme Networks is seeing solid wired and wireless demand that may push revenue toward the high end of guidance around $335 million, with EPS a few pennies above the $0.29 estimate. Lumentum is ramping optical circuit switch revenue and seeing strength in 200G and lane EMLs, which should drive revenue above $1 billion, though supply constraints may limit order conversion, with diluted EPS expected 3% to 4% above the $3.00 estimate.

Impact on stocks 4

Artificial Intelligence▲ · 2 stocks
Arista Networks
ANET
▲ PositiveDemandrelevance

Deepening hyperscaler relationships expected to drive revenue and earnings above estimates, with CY26 revenue growth guide raised to 33%.

Lumentum Holdings Inc
LITE
▲ PositiveDemandrelevance

Ramping optical circuit switch revenue and strength in 200G and lane EMLs expected to drive revenue above $1 billion, with EPS above estimate.

Cybersecurity & Digital Trust▲ · 1 stocks
Extreme Networks Inc
EXTR
▲ PositiveDemandrelevance

Solid wired and wireless demand may push revenue toward high end of guidance around $335 million, with EPS above estimate.

Information Technology▲ · 1 stocks

Theme Impact 5

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