Pediatrix Medical Group (NYSE: MD) saw its stock soar 5.56% in pre-market trading on Tuesday following the release of its impressive first-quarter 2025 financial results. The company, a leading provider of physician services, reported better-than-expected earnings and raised its full-year outlook, exciting investors.

For Q1 2025, Pediatrix Medical Group reported net income of $21 million, or $0.24 per diluted share, a significant increase from $4 million, or $0.05 per diluted share, in the same period last year. Adjusted earnings per share (EPS) came in at $0.33, surpassing analyst estimates of $0.24 and marking a 65% increase from the previous year's $0.20. The company's revenue of $458.4 million also beat analyst expectations of $451.5 million, despite a 7.42% year-over-year decrease due to practice dispositions.

Adding to the positive sentiment, Pediatrix Medical Group raised its full-year 2025 Adjusted EBITDA outlook to a range of $220 million to $240 million. This upward revision reflects the company's strong first-quarter performance and continued steady cost management. The improved financial results and optimistic outlook have likely contributed to the stock's significant pre-market rally, as investors respond favorably to the company's ability to deliver growth and manage costs effectively in the competitive healthcare sector.