Transcat (NASDAQ: TRNS) saw its shares surge 5.08% in after-hours trading following the release of its fiscal fourth quarter and full-year 2025 financial results. The company's performance exceeded analyst expectations, driven by strong growth in its service segment and calibration business.

The Rochester, New York-based company reported adjusted earnings per share of $0.64 for Q4, significantly beating the analyst consensus estimate of $0.37. While this represents a slight decrease from $0.66 per share in the same period last year, it demonstrates Transcat's resilience in a challenging economic environment. Quarterly revenue also surpassed expectations, coming in at $77.13 million, above the estimated $76.39 million and marking an 8.77% increase from the previous year.

Investors were particularly impressed by Transcat's service segment performance, which saw an 11% increase in Q4 revenue, reaching $52 million. The company also reported a 13% rise in service gross profit, attributed to double-digit revenue growth and improvements in productivity and automation. Additionally, Transcat's calibration business showed strength, contributing to a 9% increase in adjusted EBITDA, which rose to $12.7 million for the quarter. These positive results, coupled with a solid balance sheet and expanded operating free cash flow, appear to have fueled investor optimism, leading to the after-hours stock price surge.