Red Hat (RHT) reported a surge in fiscal third quarter earnings after the close of trading yesterday.

The open-source solutions business software maker said profits rose to $38.2 million, or $0.19 per share, from $26 million, or $0.13 per share, in last year’s third quarter.

Adjusted earnings of $0.28 per share beat analyst expectations. A 23% increase in revenue, to $290 million, was just barely ahead of analyst estimates.

Red Hat competes with larger rivals like Microsoft (MSFT) and Oracle (ORCL) in the enterprise software space.

Investors must have expected more from Red Hat, as shares are trending lower Tuesday.