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Keysight Technologies (KEYS)
NYSE:KEYS
Earnings Data
Report Date
May 19, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
2.28Last Year’s EPS
1.7Same Quarter Last Year
Strong Buy
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented strong, broad-based operational and financial outperformance: record revenue, orders, margin expansion, robust cash flow, and upbeat near-term guidance driven by secular tailwinds in AI, wireline, optical, and defense. Risks cited were primarily execution and timing related to recent acquisitions (near-term margin dilution and ERP migration), some regulatory (tariff) uncertainty not yet modeled, and limited visibility beyond a couple of quarters. On balance, the positives (revenue, orders, margins, cash flow, market tailwinds and confident guidance) substantially outweigh the manageable lowlights.Company Guidance
Record Q1 Revenue and EPS
Total company revenue of $1.600 billion, up 23% year-over-year on a reported basis (core revenue +14%). Net income of $376 million and diluted EPS of $2.17, both up 19% year-over-year. Revenue and EPS exceeded the high end of guidance for the quarter.
Strong Order Momentum
Orders of $1.645 billion, up 30% year-over-year on a reported basis and up 22% on a core basis, indicating meaningful demand acceleration and a robust funnel.
Expanded Margins and Operating Leverage
Gross margin improved to 66.7%, up 90 basis points year-over-year; operating margin of 27.4%, up 20 basis points. Core business operating margin was 28.9%, up 170 basis points, delivering 41% core operating leverage in the quarter.
Segment Strength — Communications Solutions
Communications Solutions Group revenue of $1.124 billion, up 27% reported and up 16% core, with a gross margin of 68.5% and operating margin of 27.5%. Wireline orders outpaced wireless and wireline delivered its ninth consecutive quarter of growth.
Segment Strength — Electronic Industrial Solutions
EISG revenue of $476 million, up 15% year-over-year with record quarterly revenue and double-digit growth across general electronics, semiconductors, and automotive & energy markets.
AI, Optical and Wireline Tailwinds
Company highlighted multiple secular tailwinds — AI infrastructure, higher-speed Ethernet (800G, 1.6T, 3.2T), optical interconnect adoption, and system-level validation — with AI-related exposure previously sized ~10% of revenue and stronger-than-company-average orders in that sub-bucket.
Software/Recurring Revenue Mix and ARR
Software and services comprised ~40% of revenue; software specifically >25% (around 26-27%). Annual recurring revenue (ARR) was ~29% of total revenue, supporting stickiness and long-term visibility.
Strong Cash Generation and Capital Returns
Operating cash flow of $441 million and free cash flow of $407 million in Q1. Cash and equivalents ~ $2.2 billion. Repurchased ~420,000 shares for ~$87 million during the quarter and Board authorized a $1.5 billion buyback program.
Confident Near-Term Outlook and Upsized Full-Year View
Q2 revenue guide of $1.690B–$1.710B (midpoint ~30% year-over-year growth) and EPS guide $2.27–$2.33 (~35% YoY at midpoint). Company now expects total fiscal '26 revenue and earnings growth just above 20% (all-in). Acquisition-related revenue target of $375 million for fiscal '26 unchanged and synergy target remains >$100 million in run-rate cost synergies.
Defense and Aerospace Momentum
Record Q1 orders in aerospace, defense and government driven by program expansions, production automation and new system deployments; grew revenue in the segment (A&D revenue $366M, +18% YoY) with wins in threat emulators, space/satellite testing and PNT offerings.
KEYS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KEYS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 23, 2026 | $245.00 | $301.48 | +23.05% |
Nov 24, 2025 | $177.67 | $195.46 | +10.01% |
Aug 19, 2025 | $163.48 | $158.51 | -3.04% |
May 20, 2025 | $162.80 | $162.47 | -0.20% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Keysight Technologies (KEYS) report earnings?
Keysight Technologies (KEYS) is schdueled to report earning on May 19, 2026, After Close (Confirmed).
What is Keysight Technologies (KEYS) earnings time?
Keysight Technologies (KEYS) earnings time is at May 19, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KEYS EPS forecast?
KEYS EPS forecast for the fiscal quarter 2026 (Q2) is 2.28.
