Neonc Technologies shares jump on strong quarterly results

Neonc Technologies Inc. shares surged more than 15% in early trading on Thursday after the company reported quarterly results that surpassed market expectations.

The AI-driven software provider posted revenue of $245 million for the quarter ended March 31, up 22% year-over-year and above the $220 million consensus estimate compiled by Refinitiv. Net income rose to $48 million, or $0.72 per share, compared with $32 million, or $0.48 per share, in the same period last year. Adjusted earnings per share of $0.75 also exceeded the $0.65 forecast.

Management attributed the outperformance to strong demand for its enterprise AI solutions, particularly in healthcare and financial services sectors. The company also raised its full-year revenue guidance, forecasting growth of 18% to 20%, up from its prior outlook of 12% to 15%.

Analysts at JPMorgan and Goldman Sachs upgraded their price targets on Neonc Technologies following the results, citing robust pipeline visibility and improving margins. JPMorgan’s target increased to $125 from $110, while Goldman Sachs set a new target of $130, up from $115.

Neonc Technologies’ stock, which had underperformed the broader tech sector in recent months, has now recouped most of its year-to-date losses. The shares closed at $108.50 on Wednesday and were indicated higher at $125.30 in premarket trading on Thursday.