TAL Education Group's stock surged 17.74% in pre-market trading on Thursday, following the company's impressive fiscal third-quarter 2025 financial results that exceeded analysts' expectations. The education technology firm's rally was fueled by robust revenue growth and a surprising swing to profitability.

For the quarter ended November 30, 2024, TAL reported revenue of $606.4 million, up 62.4% year-over-year, beating the analyst consensus estimate of $542.2 million. The company also posted adjusted earnings per American Depositary Share (ADS) of $0.06, outperforming the $0.04 estimate. In addition, TAL reported net income attributable to shareholders of $23.1 million, a significant turnaround from the $23.9 million net loss in the same quarter last year.

The strong financial performance was driven by the growing popularity of TAL's AI learning devices and online education services, as well as contributions from strategic partnerships. According to the company's President & Chief Financial Officer, Alex Peng, "Our AI learning devices remained one of our faster-growing business lines and received encouraging user feedback and market recognition." TAL's deferred revenue balance also increased substantially, reflecting robust demand for its offerings.