Shares of Gannett (GCI), the largest U.S. local news publisher and owner of USA TODAY, are soaring 5.12% in Friday's intraday trading session following the release of its second-quarter 2025 earnings report. The company's stock price surge comes on the heels of a significant earnings beat that has caught investors' attention.

Gannett reported earnings per share (EPS) of $0.42 for Q2, dramatically outperforming analysts' expectations of a $0.06 loss per share. This represents a remarkable 367% year-over-year increase from the $0.09 EPS reported in the same quarter of 2024. The company's bottom-line performance was bolstered by successful cost-cutting measures and improved profitability, despite ongoing revenue challenges.

While Gannett's revenue declined 8.6% year-over-year to $584.9 million, slightly missing analyst estimates of $593.1 million, investors appear to be focusing on the company's improved profitability and successful expense management. The adjusted EBITDA margin expanded to 11%, up from 8.8% in the previous quarter, reflecting the company's ability to enhance operational efficiency in a challenging media landscape. Additionally, Gannett's ongoing debt reduction efforts and investments in digital initiatives, including AI partnerships, seem to be resonating positively with the market, contributing to today's stock price surge.