Keysight Reports Record Orders and Revenue Amid Strong AI Infrastructure Demand
On August 18, Keysight Technologies (NYSE:KEYS) reported strong fiscal third-quarter results that exceeded its guidance. The company saw a 36% year-over-year revenue increase to $1.85 billion, with non-GAAP earnings per share rising by 79%. Orders reached an impressive $2.091 billion for the second consecutive quarter, driven largely by demand in AI infrastructure and defense modernization. The growth was broad-based across segments: wireline orders more than doubled due to AI data center expansion; Commercial Communications revenue crossed $1 billion for the first time; and Electronic Industrial Solutions Group posted a record $501 million. Aerospace and defense revenue also rose by 14%. Operating margin expanded significantly, reaching 33.2%, while free cash flow increased. Despite these positive results, CFO Neil Dougherty warned that supply chain constraints are limiting the company's ability to convert orders into revenue in the near term. Additionally, one-time tariff benefits inflated fiscal 2026 profitability and will not repeat next year.
Tickers: $KEYS