What were the main drivers of revenue growth in the current period?

Revenue growth was primarily driven by strong demand in high-speed networks to support AI capabilities, continued customer R&D spend in next-generation technologies like 5G/6G, quantum computing, and data center expansion. The acquisitions of Spirent Communications plc and Synopsys' Optical Solutions Group also significantly contributed to the revenue increase.

How did the IEEPA tariff refund claims impact the financial results?

The favorable U.S. Supreme Court decision on IEEPA tariffs resulted in a receivable of $100 million for tariffs previously paid and accrued interest, with corresponding offsets to cost of sales, SG&A, and interest income. Additionally, a $40 million liability was recorded for customer surcharge refunds. This resulted in a net positive impact on income from operations for the period.

What is the company's strategy regarding shareholder returns?

Keysight Technologies demonstrates its commitment to shareholder returns through its newly approved $1.5 billion stock repurchase program. This program allows the company to repurchase its outstanding shares of common stock, indicating confidence in its financial position and future prospects.

Are there any significant legal proceedings that could impact the company?

Keysight is involved in ongoing litigation, notably with Centripetal Networks, concerning patent infringement allegations. While Keysight is aggressively defending these claims and has seen favorable outcomes in some jurisdictions, the outcome of litigation is inherently uncertain and could result in significant costs or adverse judgments.

KEYS 10-Q Quarterly Report Q2 FY2026 — Revenue, Net Income, EPS

Summary

Keysight Technologies, Inc. reported strong financial performance for the six months ended April 30, 2026, driven by significant revenue growth across both its Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG). Total revenue increased by 27% year-over-year to $3.317 billion, fueled by strong demand in AI-driven technologies, high-speed networks, and aerospace and defense solutions. Net income saw a substantial increase of 48% to $630 million, benefiting from higher revenue, favorable product mix, and a significant tax benefit related to a favorable audit settlement. The company's financial health remains robust, with operating cash flow of $942 million for the period. Keysight also continued its strategic growth through acquisitions, notably the acquisition of Spirent Communications plc and Synopsys' Optical Solutions Group, which contributed to revenue growth and expanded its market reach. The company also announced a new $1.5 billion stock repurchase program, underscoring its commitment to returning value to shareholders.

Financial Highlights

52 data points

Beta

Revenue

$1.72B

0.7% Gross Margin

Net Income

$349.00M

0.2% Net Margin

EPS (Diluted)

$2.02

Total Assets

$11.74B

Cash & Equivalents

$2.41B

Free Cash Flow

$472.00M

Financial Statements

Beta

Revenue	$1.72B
Cost of Revenue	$539.00M
Gross Profit	$1.18B
R&D Expenses	$320.00M
SG&A Expenses	$456.00M
Operating Expenses	$1.31B
Operating Income	$407.00M
Net Income	$349.00M
EPS (Basic)	$2.04
EPS (Diluted)	$2.02
Shares Outstanding (Basic)	171.00M
Shares Outstanding (Diluted)	173.00M

Key Highlights

1Total revenue increased by 27% to $3.317 billion for the six months ended April 30, 2026, compared to the prior year.
2Net income grew by 48% to $630 million for the six months ended April 30, 2026.
3Gross margin improved to 65.5% for the six months ended April 30, 2026, up from 62.7% in the prior year, driven by higher revenue, favorable mix, and IEEPA tariff refunds.
4Cash flow from operating activities was strong at $942 million for the six months ended April 30, 2026.
5The company completed the acquisitions of Spirent Communications plc and Synopsys' Optical Solutions Group, contributing to revenue growth and strategic expansion.
6A new stock repurchase program of up to $1.5 billion was approved, demonstrating a commitment to shareholder returns.
7A significant tax benefit of $87 million from discrete items, including a favorable audit settlement, positively impacted net income for the six months ended April 30, 2026.

Keysight Technologies, Inc. Quarterly Report for Q2 Ended Apr 30, 2026

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions