Shares of Palo Alto Networks (PANW) plummeted 7.22% in pre-market trading on Wednesday following the cybersecurity company's fiscal third-quarter earnings report. Despite beating profit expectations, investors were disappointed by in-line revenue growth and rising expenses, leading to a significant sell-off.

Palo Alto Networks reported revenue of $2.3 billion for the quarter, representing a 15% year-over-year growth and matching analysts' estimates. While the company beat adjusted earnings expectations with 80 cents per share versus the anticipated 77 cents, a 12% increase in operating expenses raised concerns among investors about the company's profitability.

Adding to the negative sentiment, Palo Alto Networks' outlook for remaining performance obligations (RPO) fell slightly short of Wall Street expectations. The company projected RPO of $15.2 billion to $15.3 billion for the next quarter, just below the consensus estimate of $15.3 billion. This metric is closely watched as an indicator of future revenue growth.

The earnings report prompted several analysts to adjust their price targets for Palo Alto Networks. While some maintained their positive outlook on the company's long-term prospects, others expressed caution about its near-term growth trajectory. Barclays, for instance, cut its price target to $210 from $213, while maintaining an Overweight rating on the stock.

As cybersecurity remains a critical concern for businesses worldwide, Palo Alto Networks continues to invest in its "platformization" strategy and artificial intelligence capabilities. However, the market's reaction suggests that investors are increasingly focused on profitability and efficiency, particularly in the current economic environment.