Shares of NetScout (NTCT) plunged 5.15% in Friday's pre-market session, despite the network performance and security company reporting better-than-expected results for its fiscal third quarter ended December 31, 2024.

The stock's decline suggests investors may have concerns about NetScout's future growth prospects, even as the company delivered solid financial performance in Q3 and maintained its full-year 2025 guidance.

In its earnings call, NetScout highlighted strong revenue growth of 16% year-over-year in Q3, driven by a 29% surge in its Cyber Security product line and a 9% increase in Service Assurance offerings. The company attributed this to accelerated large orders from service provider customers for 5G-related solutions.

However, NetScout noted that its traditional service assurance business is expected to face challenges, with future growth coming from areas like 5G, cloud, AI, fixed wireless, and private 5G networks. While these represent promising opportunities, the market may be uncertain about the company's ability to successfully capitalize on them.