Cyber security firm Palo Alto Networks forecast current-quarter revenue and profit below analysts' estimates, sending its shares down 7 percent on Wednesday.
However, the company reported a higher-than-expected revenue for the fourth quarter as spending by companies and governments on cyber security stayed strong after a spate of major attacks in the past few years.
Palo Alto also said it would buy back up to $500 million in shares.
The company forecast revenue of $396 million-$402 million and adjusted profit of 51-53 cents per share for the first quarter.
Analysts on average were expecting earnings of 56 cents per share and revenue of $402.2 million, according to Thomson Reuters I/B/E/S.