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Palo Alto Networks (NASDAQ:PANW) reported better-than-expected first-quarter earnings but still saw its stock drop 5.6%.

The cybersecurity leader posted adjusted earnings per share of $1.56 for the fiscal first quarter ended October 31, surpassing analyst estimates of $1.48. Revenue grew 14% YoY to $2.1 billion, slightly below the consensus estimate of $2.12 billion.

For the second quarter, Palo Alto Networks expects revenue between $2.22 billion and $2.25 billion, in line with analyst expectations of $2.23 billion. The company forecasts adjusted EPS of $1.54 to $1.56, compared to the $1.55 consensus.

"Our Q1 results reinforced our conviction in our differentiated platformization strategy," said Nikesh Arora, chairman and CEO of Palo Alto Networks. "We see a growing market realization that platformization is the game changer that will solve security and enable better AI outcomes."

The company raised its full-year guidance, now projecting adjusted EPS of $6.26 to $6.39 on revenue of $9.12 billion to $9.17 billion. This compares to analyst estimates of $6.28 EPS and $9.13 billion in revenue.

Palo Alto Networks also announced a two-for-one stock split, effective December 16, which could improve stock liquidity and accessibility for retail investors.

Despite the positive earnings beat and raised guidance, the stock's decline suggests investors may have been expecting stronger results or guidance from the cybersecurity firm.

This content was originally published on http://Investing.com