SkyWater Technology, Inc. (SKYT) shares soared 26.65% in trading on Wednesday, following the release of its third-quarter earnings report that significantly exceeded analyst expectations. The semiconductor company reported a surprising profit, defying market predictions of a loss.

According to the earnings report, SkyWater posted an adjusted net income of $11.5 million for the quarter, drastically outperforming the consensus estimate of a $8.36 million loss. The company's adjusted earnings per share came in at $0.24, compared to the expected loss of $0.17 per share. Additionally, SkyWater reported an impressive adjusted EBITDA of $25.8 million and an adjusted gross profit of $37.1 million.

The company's strong performance was driven by several factors. SkyWater achieved record revenues from quantum computing customers, with four new customer engagements boosting its Advanced Technology Services (ATS) revenues. The first full quarter of Texas operations exceeded revenue and profitability expectations, driven by higher wafer production levels. Furthermore, an acceleration in program timing led to stronger ATS development revenues in aerospace and defense markets. Overall, SkyWater's revenue rose 60.7% year-over-year to $150.74 million, although this fell slightly short of the $135.5 million analysts had expected.

Looking ahead, SkyWater provided a positive outlook, expecting Q4 consolidated revenue between $155 million and $165 million. The company also noted that Advanced Packaging tool installations in Florida are scheduled for completion in early 2026, potentially setting the stage for future growth. With this strong quarterly performance and optimistic forecast, investors appear to be reevaluating SkyWater's potential, driving the significant stock price surge.