Shares of Paymentus Holdings, Inc. (PAY) are skyrocketing in pre-market trading on Tuesday, surging by an impressive 21.88%. This remarkable uptick comes on the heels of the company's outstanding third-quarter 2025 financial results and a subsequent analyst price target increase, building upon the previous day's strong performance.

Paymentus reported a robust Q3 2025, with revenue reaching $310.7 million, marking a 34.2% year-over-year increase and significantly surpassing the consensus estimate of $282 million. The company's adjusted earnings per share (EPS) of $0.17 also beat analysts' expectations of $0.15. Furthermore, Paymentus achieved a record adjusted EBITDA margin of 36.5%, with adjusted EBITDA growing by an impressive 45.9% compared to the same period last year.

Adding fuel to the rally, Raymond James raised its price target for Paymentus from $38 to $41 following the earnings release. The company's upbeat outlook for the full fiscal year 2025, projecting revenue between $1,173 million and $1,178 million, and adjusted EBITDA in the range of $132 million to $134 million, has further bolstered investor confidence. The strong performance, attributed to successful new implementations and sustained customer demand for Paymentus' payment solutions, coupled with the analyst upgrade, appears to be driving the continued stock price surge in pre-market trading.