Shares of Toast, Inc. (NYSE: TOST) are soaring 6.89% in Wednesday's pre-market trading session, following the restaurant technology platform's impressive third-quarter earnings report and raised full-year guidance. The company's strong performance has sparked investor enthusiasm and prompted several analyst upgrades.

Toast reported earnings per share of $0.16, surpassing analyst estimates of $0.15, while revenue for the quarter came in at $1.63 billion, beating the expected $1.58 billion. Key highlights from the Q3 results include a 30% year-over-year growth in annualized recurring revenue (ARR) to over $2.0 billion, the addition of approximately 7,500 net new locations bringing the total to 156,000 globally, and an adjusted EBITDA of $176 million showcasing improved profitability.

Adding to the positive sentiment, Toast raised its full-year 2025 guidance, projecting non-GAAP subscription services and financial technology solutions gross profit between $1,865 million and $1,875 million, representing a 32% increase. The company also expects adjusted EBITDA for the year to be between $610 million and $620 million. In response to the strong results, several analysts have adjusted their price targets, with Morgan Stanley raising its target to $56 from $54 and adding a 'Top Pick' designation while maintaining an Overweight rating. The average analyst rating for Toast remains Overweight, with a mean price target of $47.65, according to FactSet data.