Shares of Fresenius Medical Care AG & Co. KGaA (FMS) surged 7.18% in pre-market trading on Tuesday, following the release of its better-than-expected first-quarter 2025 results. The German dialysis company reported adjusted earnings of 41 cents per share, surpassing analysts' estimates of 38 cents and matching the same quarter last year. Revenue also impressed, rising 3.3% to €4.88 billion, beating expectations of €4.78 billion.

The company's strong performance was driven by higher demand in its care enablement segment and effective cost discipline. Despite challenges such as a severe flu season impacting U.S. dialysis treatment growth, Fresenius Medical Care maintained its full-year outlook for revenue and operating profit, which investors viewed positively.

While analysts from Deutsche Bank noted that the U.S. same-market treatment growth was flat due to higher mortality among potential patients, Morgan Stanley analysts expect a positive market reaction to the results. However, they cautioned that foreign-currency exchanges could still put pressure on consensus earnings estimates. The company's ability to deliver solid results amid these challenges appears to have boosted investor confidence, contributing to the significant pre-market rally.