Keysight Technologies (NYSE:KEYS) Posts Quarterly Earnings Results, Beats Expectations By $0.55 EPS

Posted by Francis Steltz on May 21st, 2026

Keysight Technologies (NYSE:KEYS – Get Free Report) issued its earnings results on Tuesday. The scientific and technical instruments company reported $2.87 earnings per share for the quarter, topping the consensus estimate of $2.32 by $0.55, FiscalAI reports. Keysight Technologies had a return on equity of 21.96% and a net margin of 17.25%.The business had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.71 billion. During the same quarter last year, the company earned $1.70 EPS. The business’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 Performance

Shares of KEYS stock opened at $342.13 on Thursday. The stock has a fifty day moving average price of $319.17 and a 200 day moving average price of $252.90. The stock has a market cap of $58.68 billion, a PE ratio of 56.27, a P/E/G ratio of 2.49 and a beta of 1.26. Keysight Technologies has a 1 year low of $152.85 and a 1 year high of $370.17. The company has a debt-to-equity ratio of 0.41, a quick ratio of 2.02 and a current ratio of 2.60.

Insider Activity

In other news, CEO Satish Dhanasekaran sold 1,667 shares of the business’s stock in a transaction on Tuesday, March 24th. The stock was sold at an average price of $300.00, for a total value of $500,100.00. Following the completion of the transaction, the chief executive officer directly owned 122,398 shares of the company’s stock, valued at $36,719,400. The trade was a 1.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, SVP Ingrid A. Estrada sold 2,000 shares of the business’s stock in a transaction on Friday, February 20th. The stock was sold at an average price of $237.68, for a total value of $475,360.00. Following the completion of the transaction, the senior vice president directly owned 107,861 shares of the company’s stock, valued at approximately $25,636,402.48. This trade represents a 1.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 40,334 shares of company stock valued at $11,533,230 in the last 90 days. Insiders own 0.40% of the company’s stock.

Hedge Funds Weigh In On Keysight Technologies

A number of institutional investors have recently made changes to their positions in the stock. Quarry LP purchased a new stake in shares of Keysight Technologies in the fourth quarter valued at $25,000. DV Equities LLC purchased a new stake in shares of Keysight Technologies in the fourth quarter valued at $49,000. Atlas Capital Advisors Inc. purchased a new stake in shares of Keysight Technologies in the fourth quarter valued at $57,000. Geneos Wealth Management Inc. grew its position in shares of Keysight Technologies by 66.5% in the first 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 period. Finally, Quantbot Technologies LP purchased a new stake in shares of Keysight Technologies in the second quarter valued at $71,000. 84.58% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

KEYS has been the topic of several research analyst reports. Barclays raised their target price on Keysight Technologies from $320.00 to $387.00 and gave the stock an “overweight” rating in a research report on Wednesday. Susquehanna set a $425.00 target price on Keysight Technologies in a research report on Wednesday. Citigroup raised their target price on Keysight Technologies from $282.00 to $320.00 and gave the stock a “buy” rating in a research report on Monday, March 23rd. Morgan Stanley raised their target price on Keysight Technologies from $305.00 to $350.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Finally, Robert W. Baird raised their price target on Keysight Technologies from $375.00 to $385.00 and gave the stock an “outperform” rating in a research note on Wednesday. One 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. Based on data from MarketBeat.com, Keysight Technologies has a consensus rating of “Moderate Buy” and a consensus target price of $357.58.

Check Out Our Latest Research Report on Keysight Technologies

Keysight Technologies News Roundup

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

Positive Sentiment: Keysight reported second-quarter EPS of $2.87, well above expectations, while revenue came in at $1.72 billion and rose 31.5% year over year, signaling broad business momentum. Keysight Technologies Reports Second Quarter 2026 Results
Positive Sentiment: The company lifted guidance for both the current and next quarter, with revenue and EPS forecasts topping Wall Street estimates, which usually boosts confidence in future growth. Keysight Technologies Reports Second Quarter 2026 Results
Positive Sentiment: Management said the quarter featured record orders, revenue, EPS, and free cash flow, reinforcing the view that demand remains strong across end markets, especially AI data centers and chip-related testing. Keysight Technologies Inc (KEYS) Q2 2026 Earnings Call Highlights: Record Orders and Revenue …
Positive Sentiment: Analysts noted Keysight has doubled its AI customer base and is seeing growth across multiple segments, which supports the long-term growth narrative for the stock. Keysight doubles AI customer base as growth expands across all end-market segments: analysts
Neutral Sentiment: Unusually heavy call option activity suggests traders are positioning for further upside, but it is not a fundamental change by itself.
Neutral Sentiment: Market commentary also pointed to some sales missing estimates, which may temper enthusiasm a bit even after the strong earnings beat. Keysight Q2 Earnings Surpass Estimates on Solid Revenue Growth

Keysight Technologies Company Profile

(Get Free Report)

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.