Keysight reports record Q3, raises Q4 and fiscal 2026 outlook

Keysight Technologies (NYSE: KEYS ) shares are trading higher premarket on Wednesday. The company reported better-than-expected third quarter results and issued fourth quarter guidance above estimates after market close on Tuesday. 74 billion consensus. 846 billion and EPS increased 79%.

Management said customer investment continues to be strong across AI infrastructure, advanced semiconductors, defense modernization and next-generation communications, supporting its confidence in sustained long-term growth. 2%, exceeding the company’s 31%-32% long-term target. 7% operating margin and 66% operating margin incremental. 605 billion in cash and cash equivalents, with operating cash flow of $437 million and free cash flow of $403 million.

During the quarter, the company repurchased shares worth $210 million, bringing fiscal 2026 year-to-date share repurchases to $517 million. 345 billion, or 36% on a core basis, with orders reaching a new record for the ninth consecutive quarter. 006 billion. Wireline revenue more than doubled year over year and surpassed wireless revenue for the first time, supported by AI infrastructure scaling, speed transitions, silicon photonics and system-level emulation.

Electronic Industrial Solutions Group delivered record revenue of $501 million, increasing 21%, as orders recorded double-digit growth across General Electronics, Semiconductors, and Automotive and Energy. General Electronics benefited from AI-driven innovation and infrastructure spending, particularly from rising testing needs for high-performance components such as multilayer PCBs and capacitors. Semiconductor revenue was supported by capacity expansion for advanced nodes, high-bandwidth memory and silicon photonics, with commercial silicon photonics production accelerating among leading foundries and integrated device manufacturers.

Automotive and Energy orders also increased at solid double-digit rates, driven by investments in software-defined vehicle architectures, in-vehicle networking, cybersecurity testing, high-power charging, energy storage and infrastructure validation. Keysight is involved across the AI infrastructure development cycle, from pre-silicon design and chip and component validation to data-center rack and cluster emulation and high-value manufacturing. 6-terabit optical products using Keysight’s 224-gigabit digital communication analyzers. 81 billion estimate.

24 analyst estimate. 884 billion estimate. Keysight said the integration of its recent acquisition is largely complete, with systems migrations finished one quarter ahead of schedule. The company expects to achieve 80%-90% of the $100 million in cost synergies on a run-rate basis by the end of fiscal 2026.

99 during premarket trading Wednesday. Read Also: Stock Market Today: S&P 500, Nasdaq 100 Futures Rise as Trump Says 'No Talks' Are Happening With Iran—Keysight Technologies, Mercury Systems, SK Hynix in Focus Photo via Shutterstock