The shares of IT security giant Palo Alto Networks (PANW) are sinking 5% after the company delivered stronger-than-expected fiscal second-quarter results but provided earnings per share guidance for the current quarter that came in below analysts' average estimate.

The company's Q2 ended on Jan. 31.

A cutting-edge computer lab full of IT experts monitoring the security of multiple systems.

A Look at PANW's Results and Guidance

The company generated fiscal Q2 EPS of 81 cents, excluding certain items, versus analysts' average estimate of 78 cents. It reported Q2 sales of $2.26 billion, compared with the mean outlook of $2.24 billion. In the same period a year earlier, its revenue came in at $1.7 billion.

But for the current quarter, PANW provided EPS guidance of 76 cents to 77 cents. That was significantly below analysts' average estimate of 80 cents. On the top line, the firm predicted that its fiscal Q3 revenue would come in at $2.26 billion to $2.29 billion. The midpoint of the range was roughly in line with analysts' mean outlook.

PANW's Key Comments

"In Q2, our strong business performance was fueled by customers adopting technology driven by the imperative of AI, including cloud investment and infrastructure modernization," said CEO Nikesh Arora.

"From our vantage point, the outlook for cybersecurity seems to have been robust in Q2 and is likely to stay so over the rest of this year," the CEO added.

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Disclosure: None. This article is originally published at Insider Monkey.