Arteris Inc. (AIP) shares soared 7.06% in after-hours trading on Tuesday, following the release of the company's first-quarter financial results.

The semiconductor IP provider reported Q1 revenue of $22.9 million, a 39% year-over-year increase that significantly beat the consensus estimate of $21.03 million. The company's adjusted loss per share narrowed to $0.03, surpassing the estimated loss of $0.07. Management also raised its full-year 2026 revenue guidance to a range of $91 million to $95 million, up from the previous outlook of $89 million to $93 million.

The strong performance was driven by growing customer engagement in AI-enabled chips and chiplet architectures across data centers, edge devices, and physical AI systems. The company reported record Annual Contract Value plus royalties of $92.8 million, up 39% year-over-year, highlighting robust business momentum.