Palo Alto Networks Inc. (NYSE: PANW) reported fiscal third-quarter financial results after the markets closed on Thursday. The company posted $0.42 in earnings per share on $345.8 million in revenue, compared to consensus estimates from Thomson Reuters that called for $0.42 in EPS on $339.48 million in revenue. The same period from last year had $0.23 in EPS on $234.17 million in revenues.

In terms of guidance for the fiscal fourth quarter, the company expects EPS in the range of $0.48 to $0.50 and revenues in the range of $386 million to $390 million. There are consensus estimates that are calling for $0.50 in EPS on $389.27 million in revenue for the coming quarter.

During this quarter, the company agreed to partner with PwC’s Cybersecurity and Privacy practice to design a next-generation security framework to serve as a guide for customer organizations to establish a breach prevention-oriented security architecture. This framework incorporates the latest advances in security technology and addresses the modern threat landscape.

Mark McLaughlin, president and CEO of Palo Alto, commented:

Our record fiscal third quarter 2016 results continue to underscore the market demand for our unique Next-Generation Security Platform as more than 31,000 new and existing customers are working with Palo Alto Networks to solve their most difficult security needs. Security has never been more critical than it is today, and our platform delivers natively integrated and highly automated prevention outcomes, allowing us to continue to significantly outpace the competition as we further establish ourselves as the leader in cybersecurity.

Steffan Tomlinson, chief financial officer, added:

We continue to balance growth and profitability and once again delivered record revenue, billings and cash flow, with cash flow from operations margin of 49 percent and free cash flow margin of 44 percent.

On the books, cash, cash equivalents, and short-term investments totaled $1.09 billion at the end of the quarter, compared to $789 million at the end of the previous fiscal year.

Shares of Palo Alto closed at $148.18, with a consensus analyst price target of $195.79 and a 52-week trading range of $111.09 to $200.55. Following the release of the earnings report, the stock was down 10% at $132.43 in the after-hours trading session.

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