Shares of nLIGHT (LASR) surged 19.07% in Friday's trading session, following the company's impressive third-quarter earnings report released after market close on Thursday. The high-power fiber lasers provider delivered better-than-expected results, driven by record sales in its Aerospace & Defense (A&D) segment.

nLIGHT reported Q3 revenue of $66.74 million, beating analyst estimates of $63.89 million and representing an 18.9% year-over-year growth. The company's adjusted EBITDA of $7.11 million also surpassed consensus expectations of $3.29 million, reflecting improved operational leverage. Notably, the gross margin expanded significantly to 31.1% from 22.4% in the prior year, indicating enhanced operational efficiency.

Looking ahead, nLIGHT provided an optimistic outlook for Q4, projecting revenue between $72 million and $78 million. The company anticipates continued sequential growth in A&D revenue and expects full-year 2025 A&D revenue growth to exceed 40%. This positive forecast, coupled with the strong Q3 performance, likely fueled investor enthusiasm and contributed to the stock's substantial gain. With Wall Street maintaining a generally bullish stance on nLIGHT, the company's focus on the high-growth A&D market appears to be paying off, positioning it well for future growth.