Cisco Systems (CSCO:US) shares were seen trading lower in pre-market on Thursday, despite the fact that the networking company reported better-than-expected results for its third fiscal quarter.

The company topped analyst expectations for profit and sales, but shares fell on investor disappointment that the FQ3 beat didn’t result in a bigger outlook raise.

Cisco reported a profit per share of $1.00 on an adjusted basis and revenue of $14.6 billion. Analysts were looking for EPS of $0.97 on revenue of $14.40 billion.

"We once again delivered a strong quarter in a dynamic environment," said Chuck Robbins, chair and CEO of Cisco. 

"In Q3, we delivered record revenue and double-digit growth in both software and subscription revenue. As key technologies like cloud, AI and security continue to scale, Cisco's long-established leadership in networking, and the breadth of our portfolio position us well for the future."

For this quarter, the company sees EPS coming in between $1.05 - $1.07 on revenue growth of 14% - 16%. The midpoint of the revenue growth guidance points to sales of $15.07 billion, while analysts were looking for $14.95 billion. On the button-line, Street expected a profit of $1.04 per share.

For FY23, Cisco raised its EPS guidance to $3.81 at the midpoint, up from the prior $3.75. Revenue growth is now seen between 10% - 10.5%. A quarter ago, Cisco guided for FY revenue growth of 9% to 10.5%.

The FQ3 earnings report comes after a wave of selling by Congress and Senate members. Representatives Tommy Tuberville, Rob Wittman, Tom Carper, Scott Franklin and Josh Gottheimer were all selling Cisco shares in recent months.