NetScout Systems (NASDAQ:NTCT) shares plummeted 5.04% in Thursday's pre-market trading session, despite reporting better-than-expected fourth-quarter results. The cybersecurity company's stock decline comes as investors grapple with the announcement of key executive departures and the company's fiscal year 2026 outlook.

NetScout reported quarterly earnings of $0.52 per share, surpassing analyst estimates of $0.51, although this represents a 5.45% decrease from the same period last year. The company's quarterly sales of $204.99 million also beat the consensus estimate of $196.23 million, showing a modest 0.76% year-over-year increase. While these results were positive, they were overshadowed by significant leadership changes.

The company announced that both Chief Financial Officer Jean Bua and Chief Operating Officer Michael Szabados will be stepping down from their positions effective May 31, transitioning into advisory roles through June 2026. Anthony Piazza and Sanjay Munshi will take over as CFO and COO, respectively. This unexpected executive shuffle, coupled with NetScout's fiscal year 2026 revenue outlook of $825 million to $865 million and adjusted EPS guidance of $2.25-$2.40, appears to have unsettled investors, leading to the sharp stock decline despite the earnings beat.