Shares of Cirrus Logic (CRUS) surged 5.25% in after-hours trading on Tuesday following the company's release of better-than-expected fourth-quarter financial results and the announcement of a new share repurchase program.

The semiconductor company reported non-GAAP earnings of $1.67 per diluted share for the fiscal fourth quarter, significantly surpassing the FactSet analyst consensus of $1.18. Revenue for the quarter ended March 29 came in at $424.5 million, well above the $380.3 million expected by analysts and up from $371.8 million in the same period last year.

Adding to investor optimism, Cirrus Logic provided fiscal 2026 first-quarter revenue guidance of $330 million to $390 million, which compares favorably to the $340.1 million analysts were expecting. The company also announced that its board had authorized in March the repurchase of an additional $500 million of common shares, signaling confidence in its financial position and commitment to returning value to shareholders.

The strong financial performance, positive outlook, and share buyback announcement appear to be the key drivers behind the stock's after-hours rally. Investors seem to be reacting positively to Cirrus Logic's ability to outperform expectations in a challenging market environment for semiconductor companies.