Shares of Fortrea Holdings Inc. (FTRE) surged 7.11% in pre-market trading on Wednesday after the leading global contract research organization (CRO) reported better-than-expected third-quarter revenue and raised its full-year 2025 guidance.

For the third quarter ended September 30, 2025, Fortrea posted revenue of $701.3 million, surpassing analyst expectations of $645.7 million. The company's adjusted EBITDA of $50.7 million also beat the consensus estimate of $47 million. Despite reporting a net loss of $15.9 million, or $0.17 per share, the strong top-line performance and improved outlook have boosted investor confidence.

In a significant move, Fortrea raised its 2025 revenue guidance to a range of $2,700 million to $2,750 million, reflecting growing demand for its services. The company also narrowed its 2025 adjusted EBITDA guidance to $175 million to $195 million. CEO Anshul Thakral expressed confidence in Fortrea's global footprint, differentiated capabilities, and therapeutic expertise, stating, "Fortrea delivered a solid performance that met expectations in the third quarter by partnering with our clients and advancing the development of potentially life-changing treatments for patients."

The company's book-to-bill ratio of 1.13x for the quarter and 1.07x for the trailing 12 months indicates strong future revenue potential. Additionally, Fortrea reported that its cost-saving initiatives remain on track, which could further improve profitability in the coming quarters. The positive results and outlook, combined with the company's strategic positioning in the growing CRO market, appear to be driving the pre-market stock surge as investors anticipate continued growth and improved financial performance.