European Investor
20 May 2026, 09:19
Keysight Technologies Edges Up 1% in Premarket After Strongest Quarter in Company History
Keysight Technologies nudged 1% higher in premarket trading today after the electronic measurement company reported what CEO Satish Dhanasekaran described as the strongest quarter in the company's history, with all-time highs across orders, revenue, earnings per share and free cash flow.
Second quarter revenue came in at $1.72 billion, up 31% from $1.31 billion in the same period last year, surpassing $2 billion in orders for the first time. GAAP net income rose to $349 million, or $2.02 per diluted share, from $257 million, or $1.49 per share a year ago. Non-GAAP EPS jumped to $2.87 from $1.70. Free cash flow reached $472 million, and the company ended the quarter with $2.43 billion in cash.
Both reporting segments performed strongly. The Communications Solutions Group grew revenue 35% to $1.23 billion, driven by 40% growth in commercial communications and 24% growth in aerospace, defense and government. The Electronic Industrial Solutions Group grew 24% to $486 million, with double-digit growth across automotive, semiconductor and general electronics end markets.
The results also included a $100 million receivable recorded in the quarter related to IEEPA tariff refunds following a February 2026 Supreme Court ruling that certain tariffs were not authorized by law, partially offset by a $40 million liability for tariff surcharges previously collected from customers.
For Q3, Keysight guided for revenue of $1.730 billion to $1.750 billion, implying roughly 29% year-over-year growth at the midpoint, with non-GAAP EPS of $2.43 to $2.49. The company raised its full-year outlook.
The muted 1% premarket gain likely reflects a market that had already anticipated strong results given the broader momentum in AI infrastructure spending, rather than any disappointment with numbers that were objectively exceptional.
Keysight Technologies nudged 1% higher in premarket trading today after the electronic measurement company reported what CEO Satish Dhanasekaran described as the strongest quarter in the company's history, with all-time highs across orders, revenue, earnings per share and free cash flow.
Second quarter revenue came in at $1.72 billion, up 31% from $1.31 billion in the same period last year, surpassing $2 billion in orders for the first time. GAAP net income rose to $349 million, or $2.02 per diluted share, from $257 million, or $1.49 per share a year ago. Non-GAAP EPS jumped to $2.87 from $1.70. Free cash flow reached $472 million, and the company ended the quarter with $2.43 billion in cash.
Both reporting segments performed strongly. The Communications Solutions Group grew revenue 35% to $1.23 billion, driven by 40% growth in commercial communications and 24% growth in aerospace, defense and government. The Electronic Industrial Solutions Group grew 24% to $486 million, with double-digit growth across automotive, semiconductor and general electronics end markets.
The results also included a $100 million receivable recorded in the quarter related to IEEPA tariff refunds following a February 2026 Supreme Court ruling that certain tariffs were not authorized by law, partially offset by a $40 million liability for tariff surcharges previously collected from customers.
For Q3, Keysight guided for revenue of $1.730 billion to $1.750 billion, implying roughly 29% year-over-year growth at the midpoint, with non-GAAP EPS of $2.43 to $2.49. The company raised its full-year outlook.
The muted 1% premarket gain likely reflects a market that had already anticipated strong results given the broader momentum in AI infrastructure spending, rather than any disappointment with numbers that were objectively exceptional.
