SiTime Corporation's stock surged 10.64% in after-hours trading on Wednesday, following the simultaneous release of its fourth-quarter financial results and the announcement of a major strategic acquisition.

The precision timing company reported quarterly adjusted earnings of $1.53 per share, significantly beating analyst estimates of $1.21, while revenue of $113.284 million also exceeded expectations of $101.808 million. This represents a 66% year-over-year revenue increase, driven by strong growth in the Communications, Enterprise, and Datacenter business segment.

Concurrently, SiTime announced a definitive agreement to acquire Renesas Electronics' timing business for $1.5 billion in cash and stock. The acquired business is expected to generate approximately $300 million in revenue within 12 months after closing, with about 75% coming from high-growth AI datacenter and communications markets. The transaction is anticipated to close by the end of 2026.