Ruijie Networks (301165.SZ): AI data center switch ramp up on solid client demand; 3Q26 Rev better-than-expected, OP in line; Neutral

Goldman Sachs published an earnings review on Ruijie Networks (301165.SZ). Ruijie continued to deliver solid 3Q26 revenue growth, driven by the ramp-up of data center switch shipments and strong client demand, with gross margin improving sequentially and broadly in line with expectations. Operating profit was largely in line, while net income came in above estimates on better-than-expected non-operating items. As one of the leading switch suppliers in China, the company continues to migrate to next-generation high-speed switches and 51.2T CPO switches to support clients' AI platform development, benefiting from growing capex spending by CSP clients. Inventory rose notably in 3Q26, which management attributed to solid client order momentum, strong demand and a strategy to secure supply in advance;