Arteris Inc. (AIP) is having a good Tuesday evening. The chip technology company reported first-quarter earnings that beat analyst expectations, and investors are rewarding it with a nice after-hours pop.
Here's the headline number: Arteris posted Q1 revenue of $22.94 million, comfortably above the $21.03 million analysts were looking for. The company reported an adjusted loss of three cents per share, which is better than the seven-cent loss Wall Street had expected. Revenue grew 39% compared to the same quarter last year.
But the good news didn't stop there. Annual contract value and royalties also climbed 39% year-over-year, hitting $92.80 million. And remaining performance obligations — a measure of future revenue under contract — came in at $118.30 million, up 33% from a year ago.
CEO K. Charles Janac credited customer innovation in hot areas like AI chips and chiplet architectures. "As these increasingly complex systems require a combination of high performance, energy efficiency, functional safety and cybersecurity, we believe we are well positioned to enable efficient and secure data movement across a broad range of end-markets," he said in a statement.
Looking ahead, Arteris expects second-quarter revenue between $23 million and $24 million, above the $22 million consensus estimate. The company also raised its full-year 2026 revenue guidance from $89-$93 million to $91-$95 million, compared to analyst expectations of $91.01 million.
In other news, CFO Nicholas Hawkins plans to retire on August 31, 2026. He'll stick around as an advisor to ensure a smooth handoff.
Shares of Arteris were up 7.89% in after-hours trading, changing hands at $34.99 at the time of writing.
