Shares of Taylor Morrison Home Corporation (TMHC) surged 5.43% in pre-market trading on Wednesday, following the release of the company's impressive third-quarter 2025 financial results. The homebuilder significantly outperformed analysts' expectations, demonstrating resilience in a challenging housing market.

Taylor Morrison reported adjusted earnings per share (EPS) of $2.11, handily beating the IBES estimate of $1.95. This represents a strong performance, despite a 10.97% decrease from the same period last year. The company's adjusted net income reached $211 million, surpassing the estimated $194.6 million. Revenue also exceeded expectations, with home closings revenue coming in at $2.00 billion, slightly above the projected $1.993 billion.

While the overall revenue of $2.10 billion marked a marginal 1.2% decrease year-over-year, investors appeared to focus on the company's ability to outperform in key metrics. The better-than-expected results, particularly in earnings and home closings revenue, likely fueled the pre-market rally. Additionally, Taylor Morrison updated its fiscal year 2025 outlook, now expecting home closings to be between 12,800 to 13,000, which may have further boosted investor confidence in the company's near-term prospects.