Cadence Design Systems' stock surged 5.01% in after-hours trading on Tuesday, following the release of its fourth-quarter financial results.

The computational software company reported quarterly adjusted earnings of $1.99 per share, beating the analyst consensus estimate of $1.91. Revenue for the quarter reached $1.44 billion, also exceeding expectations of $1.42 billion. The company highlighted strong customer demand for its expanding AI-driven product portfolio as a key driver of growth.

For the full fiscal year 2026, Cadence provided optimistic guidance, expecting revenue between $5.9 billion and $6.0 billion and adjusted earnings per share in the range of $8.05 to $8.15, which aligns with or exceeds analyst forecasts. The company ended the quarter with a record backlog of $7.8 billion, indicating robust future demand.