What was Keysight's revenue and net income performance for the nine months ended July 31, 2026?

For the nine months ended July 31, 2026, Keysight reported total revenue of $5.16 billion, an increase of 31% compared to the same period last year. Net income for the period was $1.03 billion, a significant increase from $617 million in the prior year.

How did the acquisitions of Spirent Communications plc and Synopsys' Optical Solutions Group impact the financial results?

The acquisitions, particularly Spirent Communications plc, contributed positively to revenue growth. For the nine months ended July 31, 2026, Spirent contributed $204 million in incremental revenue. While these acquisitions increased operational costs and amortization, they expanded Keysight's market position and offerings, with overall revenue growth outpacing the increase in operating expenses.

What is the company's outlook and what are the key growth drivers?

Keysight's outlook remains positive, with a strategy focused on first-to-market solutions. Key growth drivers include customer R&D investments in next-generation technologies like AI infrastructure, 5G/6G, quantum computing, high-speed data center networks, and advancements in automotive and aerospace/defense sectors. The company is closely monitoring macroeconomic conditions, including tariffs and geopolitical tensions, but remains confident in long-term secular growth trends.

How did the company manage its debt and cash flow during the period?

Keysight's cash flow from operations was strong at $1.38 billion for the nine months ended July 31, 2026. The company's total debt decreased from $2.53 billion to $2.51 billion, with the current portion of long-term debt increasing due to the 2027 Senior Notes. Keysight had no borrowings outstanding under its $750 million revolving credit facility as of July 31, 2026, indicating a strong liquidity position.

KEYS 10-Q Quarterly Report Q3 FY2026 — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-Q filed September 2, 2026. Cited figures are marked; the original filing is the authoritative source.

Keysight Technologies, Inc. delivered a strong financial performance for the nine months ended July 31, 2026, with total revenue reaching $5.16 billion^a, a 31% increase year-over-year.

This growth was driven by robust demand across both the Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) segments, fueled by key technology trends such as AI infrastructure, high-speed networking, and defense modernization. Net income more than doubled to $1.03 billion^b for the nine-month period, reflecting improved revenue, favorable mix, and the impact of a significant tax benefit from an audit settlement. The company's strategic acquisitions, notably Spirent Communications plc, have contributed positively to revenue and market position.

Despite increased operational costs associated with these acquisitions and continued R&D investments, Keysight demonstrated strong operating leverage, with operating margin improving significantly to 21.6%^c for the nine months ended July 31, 2026. The company also maintained a healthy cash flow from operations, underscoring its financial stability and ability to fund its growth initiatives and strategic priorities.

02—Key points

Key Highlights

Total revenue for the nine months ended July 31, 2026, increased by 31% year-over-year to $5.16 billion, driven by strong performance in both CSG and EISG segments.
Net income surged to $1.03 billion for the nine months ended July 31, 2026, a substantial increase from $617 million in the prior year, bolstered by revenue growth and a significant tax benefit.
Operating margin improved to 21.6% for the nine months ended July 31, 2026, up from 16.7% in the prior year, reflecting effective cost management and operating leverage.
Cash flows from operating activities were strong at $1.38 billion for the nine months ended July 31, 2026, providing ample resources for investments and operations.
The company successfully integrated strategic acquisitions, contributing to revenue growth and market expansion, while maintaining disciplined capital allocation.
The company repurchased $517 million of its common stock during the nine months ended July 31, 2026, demonstrating a commitment to returning value to shareholders.
The IEEPA tariff refund claims and related customer surcharge refunds had a net positive impact of $57 million on income from operations for the nine months ended July 31, 2026.

03—Questions

Frequently Asked Questions

What was Keysight's revenue and net income performance for the nine months ended July 31, 2026?
For the nine months ended July 31, 2026, Keysight reported total revenue of $5.16 billion, an increase of 31% compared to the same period last year. Net income for the period was $1.03 billion, a significant increase from $617 million in the prior year.
How did the acquisitions of Spirent Communications plc and Synopsys' Optical Solutions Group impact the financial results?
The acquisitions, particularly Spirent Communications plc, contributed positively to revenue growth. For the nine months ended July 31, 2026, Spirent contributed $204 million in incremental revenue. While these acquisitions increased operational costs and amortization, they expanded Keysight's market position and offerings, with overall revenue growth outpacing the increase in operating expenses.
What is the company's outlook and what are the key growth drivers?
Keysight's outlook remains positive, with a strategy focused on first-to-market solutions. Key growth drivers include customer R&D investments in next-generation technologies like AI infrastructure, 5G/6G, quantum computing, high-speed data center networks, and advancements in automotive and aerospace/defense sectors. The company is closely monitoring macroeconomic conditions, including tariffs and geopolitical tensions, but remains confident in long-term secular growth trends.
How did the company manage its debt and cash flow during the period?
Keysight's cash flow from operations was strong at $1.38 billion for the nine months ended July 31, 2026. The company's total debt decreased from $2.53 billion to $2.51 billion, with the current portion of long-term debt increasing due to the 2027 Senior Notes. Keysight had no borrowings outstanding under its $750 million revolving credit facility as of July 31, 2026, indicating a strong liquidity position.

04—Continue

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