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Palo Alto Networks shares drop 4% after company reports fiscal third-quarter earnings

1. Palo Alto Networks' shares fell 4% after Q3 earnings report. 2. Adjusted EPS was $0.80, exceeding expectations of $0.77. 3. Revenue reached $2.29 billion, slightly above the $2.28 billion estimate. 4. Fourth-quarter adjusted EPS guidance is between $0.87 and $0.89. 5. Non-GAAP gross margin at 76% was below the expected 77.2%.

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FAQ

Why Bearish?

Despite positive EPS and revenue figures, below-expectation gross margin and capital expenditures raise concerns, reminiscent of previous downturns after earnings misses.

How important is it?

Earnings reports significantly influence stock prices; disappointing gross margins can concern investors.

Why Short Term?

Immediate market reactions to earnings can affect short-term stock performance, as seen historically.

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