Zeta Global Holdings Corp. (ZETA) shares surged 7.54% in after-hours trading on Tuesday following the company's release of impressive third-quarter results and raised guidance for the remainder of 2025 and 2026. The AI Marketing Cloud company demonstrated strong performance across key financial metrics, exceeding expectations and boosting investor confidence.

Zeta Global reported Q3 revenue of $337 million, representing a 26% year-over-year increase and surpassing the midpoint of guidance by $9 million. Notably, when excluding revenue from political candidates and LiveIntent, the growth rate was even more impressive at 28% year-over-year. The company also showcased robust profitability, with net cash provided by operating activities reaching $58 million, up 68% year-over-year, and free cash flow of $47 million, marking an 83% increase from the previous year.

Investors were particularly encouraged by Zeta Global's updated guidance for Q4 and full-year 2025, as well as its initial outlook for 2026. The company raised its full-year 2025 revenue forecast to $1,273-$1,276 million, up $11 million at the midpoint from prior guidance. Looking ahead to 2026, Zeta projects revenue of $1,540 million, representing a 21% year-over-year increase, with adjusted EBITDA of $354 million. This positive outlook, coupled with the company's strong Q3 performance and consistent growth in its Super Scaled Customer count, appears to be driving the significant after-hours stock price increase.