Keysight Technologies (NYSE:KEYS) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Keysight Technologies (NYSE:KEYS) posted its quarterly earnings data on Monday. The scientific and technical instruments company reported $2.17 EPS for the quarter, topping analysts’ consensus estimates of $2.00 by $0.17, Briefing.com reports. Keysight Technologies had a net margin of 16.84% and a return on equity of 19.71%. The firm had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.54 billion. During the same quarter last year, the business posted $1.82 EPS. The company’s revenue was up 23.3% on a year-over-year basis. Keysight Technologies updated its FY 2026 guidance to 8.590- EPS and its Q2 2026 guidance to 2.270-2.330 EPS.

Here are the key takeaways from Keysight Technologies’ conference call:

• Keysight reported an outstanding Q1, with $1.6 billion revenue (+23% reported), $1.645 billion orders (+30% reported), and EPS of $2.17, beating the high end of guidance.
• Management says demand has accelerated around AI-driven infrastructure and wireline technologies (wireline orders surpassed wireless), driven by higher‑speed Ethernet, optical interconnects, and system-level validation needs.
• Profitability and cash generation remain strong — gross margin 66.7%, operating margin 27.4%, operating cash flow of $441M and free cash flow $407M — and the company is actively returning capital (share buybacks, $1.5B authorization).
• Guidance and outlook exclude any impact from a recent Supreme Court decision on tariffs (assessment ongoing), and recent acquisitions are currently margin-dilutive with expected synergies concentrated late in 2026.

Keysight Technologies Price Performance

NYSE KEYS opened at $301.51 on Wednesday. Keysight Technologies has a 1 year low of $121.43 and a 1 year high of $305.37. The company has a fifty day simple moving average of $219.09 and a 200 day simple moving average of $191.78. The company has a current ratio of 2.35, a quick ratio of 1.78 and a debt-to-equity ratio of 0.43. The company has a market cap of $51.71 billion, a P/E ratio of 54.33, a P/E/G ratio of 2.55 and a beta of 1.20.

Key Stories Impacting Keysight Technologies

Here are the key news stories impacting Keysight Technologies this week:

• Positive Sentiment: Q1 beat with strong top‑line growth — reported revenue of about $1.6B (roughly +23% y/y) and management highlighted record orders, which investors interpreted as confirmation of durable demand. Keysight Reports First Quarter 2026 Results
• Positive Sentiment: Company raised Q2 and FY2026 guidance materially above Street estimates (Q2 EPS guide ~2.27–2.33 vs. consensus ~1.80), fueling after‑hours gains and boosting confidence in near‑term earnings power. Keysight forecasts quarterly profit above estimates
• Positive Sentiment: AI / data‑center and semiconductor infrastructure cited as the primary growth drivers; management framed the quarter as evidence of multi‑year secular demand for test & measurement equipment. Keysight Hits Record High as AI Infrastructure Demand Drives Strong Results
• Positive Sentiment: Analyst upgrades and price‑target raises followed the print (Bank of America upgraded to Buy, JPMorgan/Wells Fargo raised targets), which amplified buying momentum. JPMorgan raises price target on Keysight
• Neutral Sentiment: New partnership: Keysight will OEM Cybeats’ SBOM platform for software‑supply‑chain security — a strategic product tie‑in but likely incremental near term. Cybeats and Keysight Partner
• Neutral Sentiment: Earnings transcript, slide deck and call notes are available for investors who want detail on backlog, customer mix and margin assumptions — recommended reading to judge durability. Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Insider activity: an SVP sold 2,000 shares (routine filing) — watch but not an obvious red flag given continued large insider holdings. Ingrid Estrada Sells 2,000 Shares
• Negative Sentiment: Valuation / near‑term upside may be constrained — some new price targets are near the current level (e.g., ~$300), which could prompt profit‑taking after a sharp run. Monitor margins and the sustainability of data‑center order flow. Analyst price target changes

Keysight Technologies announced that its Board of Directors has authorized a share buyback program on Monday, November 24th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the scientific and technical instruments company to repurchase up to 4.9% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts have recently issued reports on KEYS shares. Citigroup increased their price target on shares of Keysight Technologies from $215.00 to $220.00 and gave the stock a “buy” rating in a research report on Tuesday, November 25th. Wall Street Zen downgraded shares of Keysight Technologies from a “buy” rating to a “hold” rating in a research report on Saturday, January 31st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Keysight Technologies in a research report on Monday, December 29th. Wells Fargo & Company boosted their price target on Keysight Technologies from $225.00 to $300.00 and gave the company an “overweight” rating in a research note on Tuesday. Finally, Susquehanna reaffirmed a “positive” rating and set a $300.00 price objective on shares of Keysight Technologies in a research report on Tuesday. Nine analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $289.73.

Insider Transactions at Keysight Technologies

In other Keysight Technologies news, SVP Jeffrey K. Li sold 3,934 shares of the business’s stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $200.84, for a total transaction of $790,104.56. Following the completion of the transaction, the senior vice president owned 36,699 shares of the company’s stock, valued at $7,370,627.16. The trade was a 9.68% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Ronald S. Nersesian sold 30,000 shares of the firm’s stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $196.88, for a total value of $5,906,400.00. Following the completion of the sale, the director directly owned 198,389 shares in the company, valued at approximately $39,058,826.32. This represents a 13.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 80,784 shares of company stock worth $16,317,097. Corporate insiders own 0.40% of the company’s stock.

Hedge Funds Weigh In On Keysight Technologies

Large investors have recently bought and sold shares of the stock. Haven Private LLC boosted its holdings in Keysight Technologies by 1.3% in the 4th quarter. Haven Private LLC now owns 4,063 shares of the scientific and technical instruments company’s stock valued at $826,000 after purchasing an additional 52 shares during the period. UMB Bank n.a. increased its stake in Keysight Technologies by 4.3% during the fourth quarter. UMB Bank n.a. now owns 1,324 shares of the scientific and technical instruments company’s stock valued at $269,000 after acquiring an additional 54 shares during the period. Zions Bancorporation National Association UT raised its holdings in Keysight Technologies by 12.9% in the 4th quarter. Zions Bancorporation National Association UT now owns 515 shares of the scientific and technical instruments company’s stock valued at $105,000 after acquiring an additional 59 shares in the last quarter. Sumitomo Life Insurance Co. raised its holdings in Keysight Technologies by 0.7% in the 4th quarter. Sumitomo Life Insurance Co. now owns 9,483 shares of the scientific and technical instruments company’s stock valued at $1,927,000 after acquiring an additional 62 shares in the last quarter. Finally, FIL Ltd lifted its position in shares of Keysight Technologies by 6.1% in the 4th quarter. FIL Ltd now owns 1,320 shares of the scientific and technical instruments company’s stock worth $268,000 after acquiring an additional 76 shares during the period. 84.58% of the stock is currently owned by institutional investors and hedge funds.

About Keysight Technologies

Keysight Technologies is a global provider of electronic design, test, measurement and optimization solutions for communications, electronics and related industries. The company was formed as a corporate spin-off from Agilent Technologies in 2014; its origins trace back to the electronic measurement business that was part of Hewlett‑Packard before Agilent. Keysight develops hardware and software used throughout the product development lifecycle, from design and simulation to prototype validation and manufacturing test.

Keysight’s product portfolio includes electronic test and measurement instruments such as oscilloscopes, network and spectrum analyzers, signal generators, vector network analyzers and modular PXI-based systems, together with software platforms for simulation, automated test and data analysis.