WS Investor
19 Aug 2026, 09:13
Keysight Technologies Stock Rises 2.6% After Record Q3 and Strong Q4 Outlook
Keysight Technologies (NYSE: KEYS) shares are up 2.6% in premarket trading Wednesday after the electronic design and test equipment company reported record fiscal third-quarter results and issued a strong outlook for the fourth quarter.
Keysight reported Q3 revenue of $1.85 billion, up 37% from $1.35 billion a year earlier. GAAP net income more than doubled to $397 million, while GAAP diluted EPS increased to $2.30 from $1.10.
On an adjusted basis, earnings were even stronger. Non-GAAP EPS jumped 78% year-over-year to $3.07, compared with $1.72 in the prior-year period.
AI, Communications and Semiconductor Demand Drive Growth
Keysight's Communications Solutions Group was the major growth engine, with revenue surging 43% to $1.345 billion. Commercial communications revenue increased 56%, while aerospace, defense and government revenue grew 14%.
The Electronic Industrial Solutions Group also performed strongly, with revenue rising 21% to $501 million on growth across semiconductor, general electronics, automotive and energy markets.
Keysight is strategically positioned within the semiconductor and AI infrastructure ecosystem. Its electronic design, simulation and testing technologies are used in areas including high-speed data centers, advanced semiconductors and next-generation communications. Increasing complexity in AI computing and high-speed networking creates additional testing and validation requirements, providing a structural demand driver for Keysight's equipment and software.
Orders exceeded $2 billion for the second consecutive quarter, highlighting continued demand beyond the reported revenue growth.
Keysight Raises Outlook as Momentum Continues
Management also provided a strong fiscal fourth-quarter forecast. Revenue is expected between $1.93 billion and $1.95 billion, with the midpoint representing approximately 37% year-over-year growth.
Non-GAAP EPS is projected between $3.34 and $3.40, indicating another substantial increase from the third quarter's $3.07.
Strong revenue and earnings growth, record orders and an improved full-year outlook provide several fundamental reasons for KEYS' 2.6% premarket advance. The results also reinforce Keysight's position as an important picks-and-shovels beneficiary of investment across AI infrastructure, semiconductors, communications and advanced electronics.
Keysight Technologies (NYSE: KEYS) shares are up 2.6% in premarket trading Wednesday after the electronic design and test equipment company reported record fiscal third-quarter results and issued a strong outlook for the fourth quarter.
Keysight reported Q3 revenue of $1.85 billion, up 37% from $1.35 billion a year earlier. GAAP net income more than doubled to $397 million, while GAAP diluted EPS increased to $2.30 from $1.10.
On an adjusted basis, earnings were even stronger. Non-GAAP EPS jumped 78% year-over-year to $3.07, compared with $1.72 in the prior-year period.
AI, Communications and Semiconductor Demand Drive Growth
Keysight's Communications Solutions Group was the major growth engine, with revenue surging 43% to $1.345 billion. Commercial communications revenue increased 56%, while aerospace, defense and government revenue grew 14%.
The Electronic Industrial Solutions Group also performed strongly, with revenue rising 21% to $501 million on growth across semiconductor, general electronics, automotive and energy markets.
Keysight is strategically positioned within the semiconductor and AI infrastructure ecosystem. Its electronic design, simulation and testing technologies are used in areas including high-speed data centers, advanced semiconductors and next-generation communications. Increasing complexity in AI computing and high-speed networking creates additional testing and validation requirements, providing a structural demand driver for Keysight's equipment and software.
Orders exceeded $2 billion for the second consecutive quarter, highlighting continued demand beyond the reported revenue growth.
Keysight Raises Outlook as Momentum Continues
Management also provided a strong fiscal fourth-quarter forecast. Revenue is expected between $1.93 billion and $1.95 billion, with the midpoint representing approximately 37% year-over-year growth.
Non-GAAP EPS is projected between $3.34 and $3.40, indicating another substantial increase from the third quarter's $3.07.
Strong revenue and earnings growth, record orders and an improved full-year outlook provide several fundamental reasons for KEYS' 2.6% premarket advance. The results also reinforce Keysight's position as an important picks-and-shovels beneficiary of investment across AI infrastructure, semiconductors, communications and advanced electronics.
