Keysight Technologies Reports Strong Third-Quarter Fiscal 2026 Results, Raises Quarterly Revenue Outlook
Keysight Technologies, Inc. (NYSE: KEYS) announced its financial results for the third fiscal quarter ended July 31, 2026, reporting record revenue and strong earnings growth across its major business segments.
The company’s latest results reflect continued demand for Keysight’s design, emulation and test solutions as customers across communications, aerospace and defense, semiconductor, automotive, energy and other technology markets invest in increasingly complex engineering and testing requirements.
Keysight President and CEO Satish Dhanasekaran said the company’s record third-quarter performance and outlook demonstrate the growing relevance of its strategy and technology portfolio.
“Keysight’s record Q3 results and outlook reflect the growing relevance of our strategy and portfolio, which is enabling customers to solve complex engineering challenges across our end markets,” said Dhanasekaran. “We remain confident in our ability to sustain our momentum and deliver long-term value creation.”
Strong Revenue and Earnings Growth
Keysight generated $1.85 billion in revenue during the third quarter of fiscal 2026, compared with $1.35 billion in the same period of fiscal 2025. The results represent significant year-over-year growth and highlight continued momentum across the company’s portfolio.
GAAP net income increased to $397 million, or $2.30 per diluted share, compared with $191 million, or $1.10 per share, in the prior-year quarter.
On a non-GAAP basis, net income reached $531 million, or $3.07 per share, compared with $297 million, or $1.72 per share, in the third quarter of fiscal 2025.
The company also delivered solid cash generation during the quarter. Cash flow from operations was $437 million, up from $322 million a year earlier. Free cash flow increased to $403 million, compared with $291 million in the third quarter of 2025.
As of July 31, 2026, Keysight reported $2.62 billion in cash, cash equivalents and restricted cash, providing the company with financial flexibility to support its operations, investments and long-term growth strategy.
Communications Solutions Group Drives Growth
Keysight’s Communications Solutions Group (CSG) continued to be a major contributor to the company’s third-quarter performance.
CSG generated $1.345 billion in revenue, representing a 43% increase compared with the same quarter last year. The segment benefited from strong demand across both commercial communications and aerospace, defense and government markets.
Revenue from commercial communications increased 56% year over year, reflecting continued investment in next-generation communications technologies and infrastructure.
Revenue from aerospace, defense and government increased 14%, supported by demand for advanced testing and measurement solutions required for increasingly sophisticated defense and aerospace technologies.
The segment’s performance demonstrates the importance of Keysight’s solutions in helping customers design, validate and deploy advanced communications and mission-critical systems.
Electronic Industrial Solutions Group Delivers Double-Digit Growth
Keysight’s Electronic Industrial Solutions Group (EISG) also delivered strong growth during the quarter.
EISG reported $501 million in revenue, an increase of 21% from the prior year. The segment benefited from broad-based demand across the semiconductor, general electronics, automotive and energy markets.
The continued expansion across these industries reflects increasing demand for advanced measurement, simulation and validation technologies. As electronic systems become more sophisticated and interconnected, manufacturers and engineering teams require more comprehensive tools to accelerate development and improve product reliability.
Keysight’s portfolio is designed to support customers throughout the engineering lifecycle, helping them identify potential issues earlier, reduce development risks and accelerate the introduction of new technologies.
Positive Fourth-Quarter Outlook
Based on its strong third-quarter performance and current business conditions, Keysight expects revenue for the fourth fiscal quarter of 2026 to be between $1.930 billion and $1.950 billion.
At the midpoint of the range, the company expects approximately 37% year-over-year revenue growth, demonstrating continued confidence in demand across its markets.
Keysight expects fourth-quarter non-GAAP earnings per share to be between $3.34 and $3.40, based on an estimated weighted diluted share count of approximately 172 million shares.
The company noted that certain items affecting its GAAP tax rate relate to future events and cannot currently be estimated with a reasonable degree of accuracy. As a result, Keysight has not provided a reconciliation of its GAAP earnings-per-share outlook to the corresponding non-GAAP measure.
Investor Conference Call
Keysight’s management will discuss the company’s third-quarter fiscal 2026 financial results and fourth-quarter outlook during a conference call with investors.
The event will be webcast in listen-only mode through the company’s investor relations website. The webcast is scheduled for 1:30 p.m. Pacific Time and will remain available on the company’s website for 90 days.
Investors and interested parties can access the webcast through Keysight’s investor relations website under the Upcoming Events section.
Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of the Securities Exchange Act of 1934. These statements include expectations and projections concerning Keysight’s future revenue, earnings, financial performance, business operations, market conditions and strategic objectives.
Words and expressions such as “expect,” “intend,” “will,” “should,” “outlook,” “assume” and similar terms are intended to identify forward-looking statements.
These statements are based on current assumptions, expectations and available information and are subject to a variety of risks and uncertainties. Actual results may differ materially from those anticipated by management.
Potential factors that could affect Keysight’s future performance include global economic conditions, inflation, recessionary pressures, changes in customer demand, financial market volatility, access to credit, interest rates and geopolitical conflicts.
Additional risks include changes in export controls and regulatory requirements, customer purchasing decisions and timing, tariffs and trade policies, order cancellations and other developments affecting global supply chains and technology markets.
Keysight also faces risks associated with its net-zero emissions commitments and broader changes in the regulatory and business environment.
Investors should review the risk factors and other information contained in Keysight’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended October 31, 2025, and its Quarterly Report on Form 10-Q for the period ended April 30, 2026.
Keysight does not undertake an obligation to publicly update or revise forward-looking statements except as required by law.
Non-GAAP Financial Measures
In addition to financial results prepared under U.S. generally accepted accounting principles, or GAAP, Keysight provides certain non-GAAP financial measures to help investors and management evaluate the company’s underlying operating performance.
These measures include non-GAAP net income, non-GAAP earnings per share and free cash flow.
Non-GAAP earnings per share is calculated using the weighted average diluted share count. Keysight provides reconciliations of these non-GAAP measures to the most directly comparable GAAP measures in its supplemental financial schedules.
Management believes these measures provide additional insight into the company’s operating performance and can help investors evaluate results across reporting periods. However, non-GAAP measures should be considered alongside, rather than as a substitute for, financial information prepared in accordance with GAAP.
About Keysight Technologies
Keysight Technologies (NYSE: KEYS) is a technology solutions provider focused on helping innovators address complex engineering and technology challenges.
The company provides design, emulation and test solutions across the technology development lifecycle. Its portfolio helps engineering teams accelerate innovation, reduce development risk and bring new products and technologies to market more efficiently.
Keysight serves customers across a broad range of industries, including artificial intelligence infrastructure, communications, industrial automation, aerospace and defense, automotive, semiconductor and general electronics.
By connecting virtual design environments with physical testing and measurement, Keysight enables customers to make informed engineering decisions earlier in the development process.
The company’s latest quarterly results underscore the continued demand for advanced engineering solutions as technology becomes increasingly complex and industries accelerate investment in next-generation products and infrastructure.
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