Shares declined 9.9% as investors reacted negatively to a cautious outlook and the absence of new growth catalysts despite solid execution metrics. The market appears concerned that deceleration and margin pressure were downplayed in the commentary.
- Subscription revenue growth was 23% in constant currency, slightly above the high end of guidance.
- Current remaining performance obligations (CRPO) rose 21.5% in constant currency, exceeding guidance by over 2 points.
- Operating margin improved to 29.5%, 3 points above guidance, reflecting strong cost discipline.
- Management highlighted AI and cybersecurity as growth engines but did not provide incremental upside guidance or specifics on accelerating growth trajectories.
- The 9.9% stock selloff suggests investors were disappointed by guidance tone or underlying deceleration risks not fully addressed on the call.
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