Keysight Technologies (NYSE:KEYS) Issues Earnings Results, Beats Estimates By $0.55 EPS

Keysight Technologies (NYSE:KEYS) issued its quarterly earnings results on Tuesday. The scientific and technical instruments company reported $2.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.32 by $0.55, FiscalAI reports. Keysight Technologies had a net margin of 16.84% and a return on equity of 19.26%. The company had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.71 billion. During the same quarter in the previous year, the firm earned $1.70 earnings per share. The firm’s quarterly revenue was up 31.5% on a year-over-year basis. Keysight Technologies updated its Q3 2026 guidance to 2.430-2.490 EPS.

Here are the key takeaways from Keysight Technologies’ conference call:

• Keysight posted record Q2 results, with orders up 56% year over year, revenue up 31%, EPS up 69%, and record free cash flow of $472 million. Management said this was the best quarter in company history and the strongest first half ever.
• The company raised its fiscal 2026 outlook, now expecting revenue growth in the high-20% range and Q3 revenue of $1.73 billion to $1.75 billion. Management also said the second half should be materially stronger than the first half.
• AI infrastructure demand remains a major growth engine, especially in wireline, where orders hit record levels again. Keysight said its AI-related business in the first half already exceeded all of 2025 and highlighted strong demand for validation, interoperability, optical, and system-emulation tools.
• Both business groups delivered strong performance, with Communication Solutions revenue up 35% and Electronic Industrial Solutions Group revenue up 24%, both on a reported basis. Growth was broad-based across commercial communications, defense, semiconductors, and automotive/energy.
• Management said the acquisition integrations are on track, with fiscal 2026 acquisition revenue still expected at $375 million and more than $100 million in cost synergies. The company also raised capex expectations to $200 million to support product ramps and higher demand.

Keysight Technologies Stock Up 1.0%

Shares of NYSE:KEYS opened at $343.99 on Wednesday. The company has a market capitalization of $59.00 billion, a PE ratio of 61.98, a P/E/G ratio of 2.47 and a beta of 1.26. The company has a current ratio of 2.60, a quick ratio of 2.02 and a debt-to-equity ratio of 0.41. Keysight Technologies has a twelve month low of $152.85 and a twelve month high of $370.17. The firm has a 50 day simple moving average of $317.96 and a 200-day simple moving average of $251.73.

Keysight Technologies News Roundup

Here are the key news stories impacting Keysight Technologies this week:

• Positive Sentiment: Keysight reported record second-quarter results, with EPS of $2.87 versus the $2.32 consensus and revenue of $1.72 billion slightly ahead of expectations. The company said the quarter marked all-time highs in orders, revenue, EPS, and free cash flow. Business Wire earnings release
• Positive Sentiment: Management raised full-year and Q3 outlooks, with Q3 EPS guidance of $2.43-$2.49 and revenue guidance of $1.7 billion-$1.8 billion, both above Wall Street estimates. The company also lifted FY2026 revenue guidance to $6.8 billion-$6.9 billion, signaling confidence in continued momentum. MarketWatch outlook article
• Positive Sentiment: Several reports highlighted strong investor reaction to the “beat-and-raise” quarter, with commentary pointing to surging orders and a powerful AI infrastructure tailwind. Barron’s article
• Positive Sentiment: Analysts also turned more constructive, including Susquehanna lifting its price target to $415 and maintaining a positive view, reinforcing the bullish post-earnings narrative. American Banking News note
• Neutral Sentiment: Keysight’s earnings call transcript and related coverage suggest the company is benefiting from AI-wave demand, but these articles mainly expand on the same earnings story rather than adding new material information. Seeking Alpha transcript

Wall Street Analysts Forecast Growth

KEYS has been the subject of a number of recent research reports. Susquehanna lifted their price target on shares of Keysight Technologies from $300.00 to $415.00 and gave the stock a “positive” rating in a research note on Monday. Bank of America upgraded shares of Keysight Technologies from a “neutral” rating to a “buy” rating and set a $340.00 price target for the company in a research note on Tuesday, February 24th. Wall Street Zen upgraded shares of Keysight Technologies from a “hold” rating to a “buy” rating in a research note on Saturday, February 28th. Citigroup lifted their price target on shares of Keysight Technologies from $282.00 to $320.00 and gave the stock a “buy” rating in a research note on Monday, March 23rd. Finally, Morgan Stanley lifted their price target on shares of Keysight Technologies from $268.00 to $305.00 and gave the stock an “equal weight” rating in a research note on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, Keysight Technologies currently has an average rating of “Moderate Buy” and an average price target of $332.42.

Insider Buying and Selling at Keysight Technologies

In other news, Director Ronald S. Nersesian sold 30,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $285.96, for a total transaction of $8,578,800.00. Following the completion of the sale, the director owned 163,377 shares in the company, valued at approximately $46,719,286.92. The trade was a 15.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Jo Ann Juskie sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $304.42, for a total transaction of $304,420.00. Following the sale, the senior vice president owned 12,552 shares of the company’s stock, valued at $3,821,079.84. This represents a 7.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 40,334 shares of company stock worth $11,533,230. 0.40% of the stock is owned by insiders.

Institutional Trading of Keysight Technologies

Several institutional investors and hedge funds have recently bought and sold shares of KEYS. Quarry LP purchased a new stake in Keysight Technologies in the 4th quarter valued at $25,000. DV Equities LLC purchased a new stake in Keysight Technologies in the 4th quarter valued at $49,000. Atlas Capital Advisors Inc. purchased a new stake in Keysight Technologies in the 4th quarter valued at $57,000. Geneos Wealth Management Inc. raised its position in Keysight Technologies by 66.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 393 shares of the scientific and technical instruments company’s stock valued at $59,000 after purchasing an additional 157 shares during the last quarter. Finally, Quantbot Technologies LP purchased a new stake in Keysight Technologies in the 2nd quarter valued at $71,000. Hedge funds and other institutional investors own 84.58% of the company’s stock.

Keysight Technologies Company Profile

Keysight Technologies is a global provider of electronic design, test, measurement and optimization solutions for communications, electronics and related industries. The company was formed as a corporate spin-off from Agilent Technologies in 2014; its origins trace back to the electronic measurement business that was part of Hewlett?Packard before Agilent. Keysight develops hardware and software used throughout the product development lifecycle, from design and simulation to prototype validation and manufacturing test.

Keysight’s product portfolio includes electronic test and measurement instruments such as oscilloscopes, network and spectrum analyzers, signal generators, vector network analyzers and modular PXI-based systems, together with software platforms for simulation, automated test and data analysis.