Zeta Global Holdings Corp. (ZETA) shares surged 9.82% in after-hours trading on Tuesday following the company's release of impressive third-quarter results and raised guidance for the remainder of 2025 and 2026.

The AI Marketing Cloud company reported Q3 revenue of $337 million, representing a 26% year-over-year increase and exceeding the midpoint of guidance by $9 million. Excluding revenue from political candidates and LiveIntent, the growth rate was even more impressive at 28% year-over-year. Zeta Global also demonstrated strong profitability, with net cash provided by operating activities reaching $58 million, up 68% year-over-year, and free cash flow of $47 million, an 83% increase from the previous year.

Investors were particularly encouraged by Zeta Global's updated guidance for Q4 and full-year 2025, as well as its initial outlook for 2026. The company raised its Q4 revenue guidance to $363-366 million and increased its full-year 2025 revenue forecast to $1,273-1,276 million. Additionally, Zeta provided an optimistic initial guidance for 2026, projecting revenue of $1,540 million, which would represent a 21% year-over-year increase. The company's ability to maintain strong growth while improving profitability metrics appears to be driving investor enthusiasm and the subsequent stock price surge.