Summary
Keysight Technologies, Inc. reported strong financial results for the three months ended January 31, 2026, showcasing significant year-over-year growth. Total revenue increased by 23% to $1.6 billion, driven by robust demand across both the Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) segments. This top-line growth translated into a substantial increase in net income, which more than doubled to $281 million from $169 million in the prior year period. The company's strategic acquisitions, including Spirent Communications plc and Synopsys' Optical Solutions Group, are beginning to contribute positively to revenue and are being integrated effectively, as evidenced by the addition of goodwill and intangible assets. Despite increased costs associated with acquisitions, tariffs, and higher operating expenses, Keysight demonstrated improved operational leverage. The company's financial condition remains solid, with a healthy increase in cash and cash equivalents. The strong performance underscores Keysight's strategic positioning in key growth markets such as AI, high-speed networks, and defense modernization, suggesting continued momentum. Investors should note the company's ongoing investment in R&D to maintain its competitive edge and its positive outlook on long-term secular growth trends.
Financial Highlights
51 data points| Revenue | $1.60B |
| Cost of Revenue | $605.00M |
| Gross Profit | $995.00M |
| R&D Expenses | $303.00M |
| SG&A Expenses | $447.00M |
| Operating Expenses | $1.35B |
| Operating Income | $248.00M |
| Net Income | $281.00M |
| EPS (Basic) | $1.64 |
| EPS (Diluted) | $1.63 |
| Shares Outstanding (Basic) | 172.00M |
| Shares Outstanding (Diluted) | 173.00M |
Key Highlights
- 1Revenue surged 23% year-over-year to $1.6 billion, driven by strong performance in both CSG and EISG segments.
- 2Net income more than doubled to $281 million ($1.63/share diluted) from $169 million ($0.97/share diluted) in the prior year quarter.
- 3The company successfully integrated recent acquisitions, contributing to revenue growth and the addition of goodwill.
- 4Operating cash flow increased by $63 million year-over-year, reaching $441 million, indicating strong operational efficiency.
- 5Keysight's balance sheet remains robust with a significant increase in cash and cash equivalents to $2.18 billion.
- 6The company's outlook remains positive, citing continued customer R&D investments in next-generation technologies like AI, 6G, and advanced automotive/defense solutions.