Shares of nLIGHT Inc. (LASR) are soaring 20.34% in Friday's trading session, following the company's impressive third-quarter earnings report and a series of analyst upgrades. The high-power fiber lasers provider delivered better-than-expected results, driven by record sales in its Aerospace & Defense (A&D) segment.

nLIGHT reported Q3 revenue of $66.74 million, beating analyst estimates of $63.89 million and representing an 18.9% year-over-year growth. The company's adjusted EBITDA of $7.11 million also surpassed consensus expectations of $3.29 million, reflecting improved operational leverage. Notably, the gross margin expanded significantly to 31.1% from 22.4% in the prior year, indicating enhanced operational efficiency.

The strong performance has prompted several analysts to raise their price targets for nLIGHT. Stifel and Benchmark both increased their target prices to $40 from $26 and $25 respectively, with Benchmark also upgrading the stock from Speculative Buy to Buy. Needham raised its target price to $39 from $32. This wave of positive analyst sentiment, combined with nLIGHT's optimistic Q4 outlook projecting revenue between $72 million and $78 million, has fueled investor enthusiasm. The company's focus on the high-growth A&D market, which is expected to see full-year 2025 revenue growth exceeding 40%, appears to be paying off, positioning nLIGHT well for future growth.