Embecta Corp (NASDAQ: EMBC) shares surged 5.25% in pre-market trading on Friday following the release of its second-quarter fiscal 2025 financial results, which exceeded analyst expectations. The global diabetes care company reported better-than-anticipated revenue and earnings, while maintaining its full-year adjusted earnings per share guidance despite facing challenges.

For the second quarter, Embecta reported adjusted earnings per share of $0.70, significantly beating the analyst consensus estimate of $0.53. The company's revenue came in at $259 million, surpassing the expected $253.94 million. This performance represents a 32.08% earnings beat and a 1.99% revenue beat compared to analyst projections.

Notably, Embecta is maintaining its full-year adjusted earnings per share guidance, despite lowering its fiscal year 2025 adjusted constant currency revenue guidance range and facing the impact of incremental tariffs. This decision suggests management's confidence in the company's ability to navigate challenges and maintain profitability.

Devdatt (Dev) Kurdikar, President and Chief Executive Officer of Embecta, commented on the results, stating, "This quarter's financial results were once again slightly ahead of our prior expectations, as our teams executed well, which included driving an acceleration in our free-cash flow generation, thereby allowing us to continue to repay debt and create additional balance sheet flexibility."

Investors are responding positively to Embecta's ability to outperform expectations and maintain its earnings outlook in the face of headwinds, driving the stock's pre-market rally.