Shares of Palo Alto Networks (PANW) tumbled 5.07% in pre-market trading on Wednesday following the cybersecurity company's fiscal third-quarter earnings report. Despite beating profit expectations, the company's revenue merely matched analysts' estimates, and concerns over rising expenses weighed on investor sentiment.

Palo Alto Networks reported revenue of $2.3 billion for the April quarter, representing a 15% year-over-year growth. While the company beat adjusted earnings expectations with 80 cents per share versus the anticipated 77 cents, the in-line revenue and a 12% increase in operating expenses raised concerns among investors.

The company's outlook for the fiscal fourth quarter also failed to impress. Palo Alto Networks expects total revenue between $2.49 billion and $2.51 billion, bracketing analysts' expectations of $2.5 billion. The company's guidance for remaining performance obligations (RPO) of $15.2 billion to $15.3 billion for the next quarter also fell short of Wall Street's expectations of $15.3 billion.

While Palo Alto Networks continues to make progress on its "platformization" strategy, with next-generation security annual recurring revenue exceeding $5 billion, the market's reaction suggests investors were looking for more robust growth and profitability metrics. The pre-market decline reflects growing concerns about the company's ability to maintain its growth trajectory amid rising expenses and an increasingly competitive cybersecurity landscape.