KEYS US S&P 500Russell 1000 Earnings call
Keysight Technologies (KEYS) · Q2 2026 results and valuation
Share price: $305.64 · 2026-11-11
Keysight Technologies provides hardware, software, and services for the design, testing, and manufacturing of electronic systems. The company serves customers in the communications, aerospace, defense, automotive, and semiconductor industries in over 100 countries. Source: 10-K annual report (2025-12-17)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 18 Aug 2026 and 19 May 2026
Net income up 13.8% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.
1 · Numbers
+13.8%
Net income vs Q1 2026
Outlook given
Net income 397.0M vs 349.0M
Revenue +7.5%
Against the same quarter last year (Q2 2025) it is +107.9%, so it is not just seasonal.
Why Against the same quarter last year (+107.9%), net income rose primarily due to record growth in orders and revenue across all markets, driven by strong demand in commercial communications, aerospace, defense, and government, as well as one-time tariff impacts.
2 · How management spoke
Very upbeat
More upbeat than 96% of company calls
Answers to analysts: upbeat, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Keysight Technologies expects fourth quarter 2026 revenue between $1.930 billion and $1.950 billion, representing 37% year-over-year growth at the midpoint.
Valuation
Is Keysight Technologies undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-10-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −0.3% growth a year (3-year revenue growth), the model's fair value is $84.73 a share — the stock trades 261% above it. Today's price assumes 17.3% growth a year.
Current price
$305.64
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.3% for 10 yrs
Fair value / share
$84.73
Buy below
$63.55
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
Operating margin reached 33.2%, an increase of 820 basis points year-over-year, exceeding the company's long-term target range of 31% to 32%.
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Guidance
KEYS expects fourth quarter 2026 revenue between $1.930 billion and $1.950 billion, representing 37% year-over-year growth at the midpoint.
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Figure
Orders grew 56%, revenue grew 36%, and earnings per share grew 79% alongside robust free cash flow generation.
Source quote
“Orders grew 56%, revenue grew 36% and earnings per share grew 79% alongside robust free cash flow generation.”
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Figure
Revenue grew by 21% in a record quarter with double-digit order growth across the general electronics, semiconductors, and automotive and energy markets.
Source quote
“We delivered another record quarter for both orders and revenue with revenue growth of 21% and a meaningful double-digit order growth across all 3 markets: general electronics, semiconductors and automotive and energy.”
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Guidance
The company is raising its outlook for Q4 and the full fiscal year due to current momentum.
4 more
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Guidance
KEYS reported record results for fiscal Q3 that exceeded the high end of its guidance range for both revenue and EPS.
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Key theme
Commercial Communications momentum continued into the second half of the year because of rapid scaling of the AI infrastructure ecosystem.
Source quote
“In Commercial Communications, we saw the momentum from the first half of the year continue into the second half, driven by rapid scaling of the AI infrastructure ecosystem.”
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Key theme
Supply chain issues are expected to limit near-term revenue growth for the company.
Source quote
“Supply chain will remain the governor of near-term revenue.”
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Guidance
The company expects broad-based demand to continue into Q4.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 94% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Communications Solutions orders grew for the ninth consecutive quarter, establishing a new record and revenue grew 43%, driven by compounding momentum in commercial communications and strength in aerospace, defense and...”
“Our momentum continued in fiscal Q3 as we delivered record results that exceeded the high end of our guidance range for both revenue and EPS.”
“We remain focused on enabling our customers and helping them further accelerate technology innovation in turn, driving continued organic growth, profitability and ultimately, value creation for our shareholders.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-30 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.85B | 1.72B | +7.5% | 1.35B | +36.5% |
| Gross profit | 1.22B | 1.18B | +3.2% | 834.0M | +45.8% |
| Operating income | 461.0M | 407.0M | +13.3% | 234.0M | +97.0% |
| Net income | 397.0M | 349.0M | +13.8% | 191.0M | +107.9% |
| EPS | 2.30 | 2.02 | +13.9% | 1.10 | +109.1% |
| P/E today 37.4 | 43.8 | 57.4 | −13.6 | 52.0 | −8.2 |
Topics
Most discussed now
- New It's a function of this ecosystem over the last few years has largely been a homogeneous integrated vertical stack with...
- Its cash flow generation was robust, and Keysight Technologies is on track to achieve record operating cash...
- Keysight Technologies' portfolio of highly differentiated solutions is resonating with customers, allowing us to expand margins…
- They are a very important customer base for it.
- Applications where the industry is scaling, Keysight Technologies is also uncovering new opportunities such as with regard to emulating the…
Faded since Q1 2026
- Dropped While Keysight Technologies does buy some chips and other things from outside parties, a significant portion of its highly specialized…
- Fading Keysight Technologies is seeing accelerating market momentum underpinned by its differentiated portfolio of solutions and increased…
- Fading There was no pull-forwards that Keysight Technologies can discern from the data.
- Fading The semiconductor space has been very strong with advanced nodes, especially with regard to AI compute and the scaling...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
Keysight Technologies, Inc. increased its Board size from 10 to 11 members and appointed Scott Reese as a Class I director effective August 26, 2026.
- Results of operations · SEC 8-K
Keysight Technologies reported revenue of $1.85 billion for the third quarter of 2026, compared to $1.35 billion in the third quarter of 2025.
- Results of operations · SEC 8-K
Keysight Technologies, Inc. issued a press release on May 19, 2026, announcing financial results for the second fiscal quarter ended April 30, 2026.
- New financial obligation · SEC 8-K
Keysight Technologies, Inc. entered into an Amended and Restated Credit Agreement providing a $750 million five-year unsecured revolving credit facility with an option to increase commitments by up to $350 million.
- Shareholder vote results · SEC 8-K · routine
- Director or officer change · SEC 8-K
John Page, Senior Vice President of Global Services, announced his intent to retire from Keysight Technologies, Inc. before the fiscal year ends on October 31, 2026.
- Results of operations · SEC 8-K
Keysight Technologies, Inc. issued a press release on February 23, 2026, announcing financial results for the first fiscal quarter ended January 31, 2026.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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fiscal 2026
record operating cash flow
Source quote
“In addition, our cash flow generation was robust, and we are on track to achieve record operating cash flow in fiscal 2026.”
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Q4
cost synergy realization acceleration
Source quote
“Given the faster-than-expected integration, our cost synergy realization will accelerate in Q4.”
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exiting the fiscal year
80% to 90% of the $100 million in cost synergies realized on a run rate basis
Source quote
“We now expect to have 80% to 90% of the $100 million in cost synergies realized on a run rate basis exiting the fiscal year.”
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fourth quarter of 2026
revenue in the range of $1.930 billion to $1.950 billion
Source quote
“For the fourth quarter of 2026, we expect revenue in the range of $1.930 billion to $1.950 billion, representing 37% year-over-year growth at the midpoint.”
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fourth quarter of 2026
earnings per share in the range of $3.34 to $3.40
Source quote
“We expect Q4 earnings per share to be in the range of $3.34 to $3.40, representing approximately 76% year-over-year growth at the midpoint.”