Shares of nLIGHT (LASR), a provider of high-power fiber lasers, surged 14.10% in pre-market trading on Friday, following the company's impressive third-quarter earnings report released after market close on Thursday. The strong financial results and optimistic outlook for the Aerospace & Defense (A&D) segment have sparked investor enthusiasm.

nLIGHT reported Q3 revenue of $66.74 million, surpassing 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 beat 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.

Looking ahead, nLIGHT provided an optimistic outlook for Q4, projecting revenue between $72 million and $78 million. The company anticipates continued sequential growth in A&D revenue and expects full-year 2025 A&D revenue growth to exceed 40%. This positive forecast, coupled with the strong Q3 performance, appears to be driving the stock's substantial pre-market gain. With nLIGHT's focus on the high-growth A&D market paying off, the company seems well-positioned for future growth, which has likely contributed to the positive investor sentiment reflected in the pre-market stock movement.