Avanos Medical (NYSE: AVNS) stock surged 8.41% in pre-market trading on Wednesday following the release of its third-quarter 2025 financial results, which exceeded analyst expectations. The medical technology company reported strong sales growth and raised its full-year guidance, boosting investor confidence.

For the third quarter, Avanos Medical posted adjusted earnings per share of $0.22, significantly beating the analyst consensus estimate of $0.12. The company's quarterly sales reached $177.8 million, surpassing the expected $164.5 million and representing a 4.3% increase compared to the same period last year. The strong performance was primarily driven by double-digit growth in the Specialty Nutrition Solutions (SNS) segment, which saw increased demand for enteral feeding and neonate solutions.

In light of the robust results, Avanos Medical raised its full-year 2025 guidance. The company now expects annual revenue to be between $690 million and $700 million, with adjusted earnings per share projected in the range of $0.85 to $0.95. The improved outlook reflects the company's confidence in its growth strategy and market position, despite ongoing challenges such as tariff uncertainties. While the Pain Management segment showed mixed results, with growth in RFA product sales offset by declines in surgical pain and recovery products, the overall performance and positive guidance have clearly resonated with investors, as evidenced by the significant pre-market stock movement.