Shares of Tetra Tech (NASDAQ: TTEK) surged 7.61% in after-hours trading following the company's release of its second-quarter fiscal 2025 results, which significantly exceeded analysts' expectations. The environmental and engineering consulting firm also raised its full-year guidance, further fueling investor optimism.

Tetra Tech reported adjusted earnings per share of $0.33 for Q2, surpassing the IBES estimate of $0.31 and marking a 17.86% increase from $0.28 in the same period last year. The company's revenue for the quarter reached $1.322 billion, dramatically outperforming the IBES estimate of $1.042 billion and representing a 5.59% year-over-year growth. Additionally, Tetra Tech's adjusted operating income of $130 million exceeded analyst expectations of $124.1 million.

In light of its strong performance, Tetra Tech raised its fiscal year 2025 guidance. The company now projects full-year adjusted EPS in the range of $1.42 to $1.52, up from its previous forecast of $1.37 to $1.52. Revenue guidance for FY25 was also revised to $4.40 billion to $4.77 billion. Furthermore, Tetra Tech announced a 12% year-over-year increase in its quarterly dividend, demonstrating confidence in its financial position and commitment to shareholder returns. These positive developments likely contributed to the significant after-hours stock price surge as investors reacted to the company's robust financial performance and optimistic outlook.