Palo Alto Networks reported better-than-expected earnings and revenue for the latest quarter but its gross margin was below estimates. The stock dropped 4% in extended trading on Tuesday.

Here’s how the company did, compared to analysts’ consensus estimates from LSEG:

• Earnings per share: 80 cents adjusted vs. 77 cents expected
• Revenue: $2.29 billion vs. $2.28 billion expected

Sales in the company’s fiscal third-quarter grew 15% from $1.98 billion a year earlier. Net income was $262.1 million, or 37 cents per share.

The company said its fourth-quarter adjusted earnings will come be between 87 cents and 89 per share, ahead of analysts estimates of 86 cents.

Palo Alto Networks said that its non-GAAP gross margin was 76%, which trailed analysts’ estimates of 77.2%.

The company said capital expenditures for its latest quarter were $68.3 million, below Wall Street estimates of $70.8 million.

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