Shares of Advanced Drainage Systems (WMS) surged 9.11% in pre-market trading on Thursday following the company's impressive second-quarter fiscal 2026 earnings report and raised full-year guidance. The water management solutions provider demonstrated robust financial performance, exceeding analyst expectations across key metrics.

The company reported second-quarter adjusted earnings per share of $1.97, significantly beating the consensus estimate of $1.67. Revenue for the quarter reached $850.4 million, surpassing the expected $801.39 million. Advanced Drainage Systems also posted strong growth in adjusted EBITDA, which came in at $287.5 million, well above the analyst forecast of $249.5 million.

Investors were particularly encouraged by the company's decision to raise its fiscal 2026 guidance. Advanced Drainage Systems now expects full-year net sales between $2.900 billion and $2.990 billion, up from its previous forecast. The company also increased its adjusted EBITDA outlook to a range of $900 million to $940 million. This upward revision in guidance signals management's confidence in the company's growth trajectory and operational efficiency. Additionally, the board approved a 13% increase in the quarterly cash dividend, further bolstering shareholder value.