NetScout Systems' stock plummeted 6.40% during intraday trading on Thursday, as investors reacted to the company's latest quarterly financial results.

The network observability provider reported fiscal third-quarter non-GAAP earnings of $1.00 per diluted share, beating analyst estimates of $0.83 and showing improvement from $0.94 a year earlier. However, total revenue for the quarter declined slightly to $250.7 million compared to $252 million in the same period last year, which appears to have disappointed market participants despite the earnings beat.

While NetScout raised its fiscal 2026 guidance for both revenue and earnings, the year-over-year revenue decline overshadowed these positive updates. The company now expects fiscal 2026 adjusted EPS in the range of $2.37 to $2.45, compared to previous guidance of $2.35 to $2.45, and revenue between $835 million and $870 million, raising the lower end from $830 million.