Target Hospitality Corp. (TH) stock is soaring 6.09% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results. The company reported revenue of $99.4 million, significantly beating analyst expectations of $84.8 million. Despite posting a net loss, the company's performance exceeded forecasts, with a smaller-than-expected loss per share of $0.01 compared to the anticipated $0.04 loss.

The strong revenue performance was primarily attributed to new contract awards, including the Workforce Hub and Dilley contracts. In a strategic move, Target Hospitality has also entered the AI and data center market with a $43 million Data Center Community Contract, signaling a potential new growth avenue for the company. This diversification into high-tech sectors appears to be well-received by investors.

Adding to the positive sentiment, Target Hospitality provided an optimistic outlook for the full year 2025, projecting revenue between $310 million and $320 million, and adjusted EBITDA between $50 million and $60 million. The company's ability to secure new contracts and expand into emerging markets, coupled with its solid financial guidance, seems to be driving investor confidence and contributing to the stock's significant uptick.