Shares of Alight, Inc. (NYSE: ALIT) surged 5.07% in Thursday's trading session following the release of the company's first quarter 2025 financial results. The cloud-based human capital and technology-enabled services provider reported solid performance that met or exceeded analyst expectations in several key areas.

Alight reported revenue of $548 million for the quarter, slightly above the analyst consensus estimate of $541.52 million. While this represents a 2% decrease from the same period last year, the company's adjusted EBITDA improved to $118 million, surpassing the analyst estimate of $115.4 million. Adjusted earnings per share came in at $0.10, in line with expectations.

Investors were particularly encouraged by Alight's strong business momentum and outlook. The company reported that 92% of its projected 2025 revenue is already under contract, providing significant visibility for the year ahead. Additionally, Alight reaffirmed its full-year 2025 financial outlook, demonstrating confidence in its business model and growth prospects. The company also highlighted key wins with notable clients such as US Foods, Markel, and Delek, further solidifying its market position.

CEO Dave Guilmette commented on the results, stating, "Our first quarter performance met expectations and we are off to a strong start to the year. We continue to bolster our leading capabilities through a focus on client-centricity and delivering with excellence, including important advancements across our artificial intelligence and delivery initiatives."

The positive reception of Alight's earnings report and management's optimistic outlook appear to be the primary drivers behind the stock's significant rise, as investors gain confidence in the company's ability to execute its strategy and deliver value in the evolving human capital management landscape.