Shares of Toast, Inc. (TOST) surged 5.08% in pre-market trading on Wednesday, building on the momentum from its impressive third-quarter earnings report released after hours on Tuesday. The restaurant technology platform provider delivered better-than-expected results and raised its full-year guidance, sparking investor enthusiasm and prompting analyst upgrades.

Toast reported earnings per share of $0.16, surpassing analyst estimates of $0.15, while revenue for the quarter came in at $1.63 billion, beating the expected $1.58 billion. The company's strong performance was underpinned by robust growth in key metrics, including a 30% year-over-year increase in annualized recurring revenue (ARR) to over $2.0 billion and the addition of approximately 7,500 net new locations, bringing its global footprint to 156,000 locations.

Adding to the positive sentiment, Toast raised its full-year 2025 guidance, projecting non-GAAP subscription services and financial technology solutions gross profit between $1,865 million and $1,875 million, a 32% increase from previous estimates. The company also expects adjusted EBITDA for the year to be between $610 million and $620 million. In response to the strong results, Morgan Stanley raised its price target on Toast to $56 from $54 and added a 'Top Pick' designation while maintaining an Overweight rating. The average analyst rating for Toast remains Overweight, with a mean price target of $47.65, according to FactSet data.