JOYY Inc. (NASDAQ: JOYY) shares surged 6.60% in pre-market trading on Thursday following the release of its impressive third-quarter 2025 financial results and a positive analyst outlook. The global technology company reported better-than-expected earnings and revenue, driven by accelerating growth in its advertising business and a recovery in its livestreaming segment.

JOYY's Q3 revenue reached $540.2 million, up 6.4% quarter-over-quarter and surpassing analyst estimates of $533.127 million. The company's non-GAAP diluted earnings per ADS came in at $1.36, significantly beating the consensus estimate of $0.98 and marking a 27.1% increase from the same period last year. Notably, JOYY's advertising revenue, particularly from its BIGO Ads platform, surged 33.1% year-over-year to $104 million, demonstrating the success of the company's diversification strategy.

Adding to the positive sentiment, Jefferies raised its target price for JOYY to $70.2 from $61.1, reflecting growing confidence in the company's growth prospects. Investors were also encouraged by JOYY's positive outlook for 2026, with management expressing confidence in achieving year-over-year group-level revenue growth. The company's commitment to shareholder returns, including $148 million in dividends and $89 million in share repurchases year-to-date, further bolstered investor confidence. With a strong balance sheet showing $3.32 billion in net cash, JOYY is well-positioned to continue its growth initiatives and capital return program.