Acuity (AYI) shares surged 7.83% in pre-market trading on Thursday following the release of its fiscal 2025 third-quarter results, which significantly exceeded analyst expectations. The lighting and building management solutions provider demonstrated robust performance across key financial metrics, particularly in its fast-growing Intelligent Spaces segment.

The company reported adjusted earnings per share of $5.12, handily beating the analyst consensus estimate of $4.43. Revenue for the quarter came in at $1.18 billion, up 21.7% year-over-year and surpassing the expected $1.15 billion. Notably, Acuity's Intelligent Spaces segment saw explosive growth, with sales skyrocketing 248.9% to $264.1 million, primarily driven by the acquisition of QSC.

While Acuity's traditional lighting business, Acuity Brands Lighting (ABL), showed modest growth of 2.7%, the company took steps to enhance profitability in this segment. Acuity implemented productivity actions in ABL, resulting in $29.7 million of special charges related to brand eliminations, associate severance, and facility reorganization. Despite these charges, which impacted net income, the company's adjusted operating profit rose by an impressive 32.7% to $221.7 million, with margins expanding across both segments. The strong quarterly performance, particularly in the high-growth Intelligent Spaces division, appears to have fueled investor optimism, driving the significant pre-market stock price increase.