Keysight Reports Record Q2 Profit Driven by Strong Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Source: NASDAQ.COM
- Significant Profit Increase: Keysight's Q2 net income rose to $349 million, or $2.02 per share, up from $257 million and $1.49 per share a year ago, reflecting strong demand across communications, aerospace, and semiconductor markets.
- Robust Revenue Growth: The company's revenue surged 31.5% year-over-year, increasing from $1.31 billion to $1.72 billion, marking a historic high and indicating an expanding market share across various sectors.
- Optimistic Outlook: Keysight anticipates third-quarter revenue between $1.73 billion and $1.75 billion, with adjusted earnings projected at $2.43 to $2.49 per share, showcasing the company's confidence in sustained growth and performance.
- Strategic Investment Returns: CEO Satish Dhanasekaran emphasized that the disciplined strategic investments made over recent years have enabled Keysight to capitalize on accelerating demand, leading to an outperformance in financial results and an upward revision of expectations for fiscal 2026.
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Analyst Views on KEYS
Wall Street analysts forecast KEYS stock price to fall
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 339.130
Low
205.00
Averages
222.30
High
232.00
Current: 339.130
Low
205.00
Averages
222.30
High
232.00
About KEYS
Keysight Technologies, Inc. specializes in the computing, communications and electronics market. Its portfolio of hardware, software, and services enables its customers’ engineering workflows as they design, manufacture, deploy, and optimize their products and solutions. Its segments include Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG). CSG solutions consist of electronic design and test software, instrumentation, systems, and related services, serving customers across the global commercial communications and aerospace, defense, and government end markets. EISG solutions consist of electronic design, test and simulation software, optical design and photonics simulation tools, instrumentation, systems, and related services, serving customers across a diverse set of end markets focused on automotive and energy, semiconductor solutions, and general electronics. Its product categories include oscilloscopes, and digital multimeters, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Keysight Introduces New RF Circuit Simulation Feature
- Design Process Capture: Keysight Technologies has launched a new capability within its RF Circuit Simulation Professional software that allows engineers to capture their design processes on an executable whiteboard, generating editable Python code that enhances design efficiency by making design decisions, simulations, and optimizations reusable.
- Addressing Talent Shortage: According to McKinsey, the semiconductor industry will require 88,000 engineers by 2029, with RF design facing an even more acute talent gap; this software helps retain and transfer critical design knowledge, mitigating the impact of senior engineer turnover on the industry.
- Workflow Automation: The new feature supports decision loops and parameter settings, enabling design teams to construct workflows visually and automatically execute simulations and design decisions, significantly reducing the manual setup time required for each iteration and improving overall workflow efficiency.
- AI-Driven Design Transformation: Keysight's EDA General Manager Nilesh Kamdar stated that the structured data and Python APIs generated by this software represent the first step towards fully automated and AI/ML-driven RF design, marking a significant advancement in the industry's shift towards intelligent design practices.
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- AI-Driven Design Optimization: By demonstrating AI-driven workflows, Keysight will illustrate how to automate RF design tasks and accelerate optimization processes, thereby reducing development risks and improving design reuse, enabling engineers to transition faster from concept to deployment.
- Complex RF System Validation: Keysight will showcase high-fidelity signal generation technology that supports rapid validation for 5G and 6G applications, ensuring reliability in increasingly complex RF architectures, further solidifying its market leadership.
- Expert Technical Talks: During the symposium, Keysight experts will conduct multiple technical presentations covering calibration and measurement methods for phased array antennas, as well as the impact of quantum computing on the RF electronics supply chain, showcasing the company's deep expertise and industry insights in cutting-edge technologies.
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- Cross-Domain Issue Detection: The new solution allows engineers to detect signal integrity issues across electrical and optical domains before prototyping, ensuring that electrical and optical design trade-offs are assessed early in the design cycle, which reduces costs associated with late-stage modifications.
- Nonlinear Effects Assessment: EOE simulation flows support wavelength division multiplexing, enabling engineers to evaluate optical nonlinearities affecting performance across multiple wavelengths, ensuring reliability in 800G and 1.6T optical links and enhancing overall system performance.
- System-Level Signal Quality: By modeling noise across electrical and optical domains simultaneously, engineers can assess system-level signal quality under realistic conditions, ensuring design accuracy and reliability, which enhances competitive positioning in the market.
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- AI Revenue Surge: Keysight's AI-related revenue in the first half of fiscal 2026 surpassed the total for fiscal 2025, indicating strong performance amid surging demand for artificial intelligence, with expectations for AI to account for nearly 20% of total sales.
- Expanded Customer Base: Keysight doubled its AI customer base year-over-year, with a core order growth rate of 48% in the first quarter, reflecting a significant increase in customer urgency for AI infrastructure, thereby enhancing the company's market position.
- Supply Chain Stability: Keysight has minimal supply chain issues, particularly with low exposure to high-bandwidth memory, ensuring continuity in production and delivery, which supports future growth potential.
- Optimistic Analyst Ratings: Susquehanna raised Keysight's price target from $415 to $425, anticipating that AI business will drive revenue growth in the coming years, supporting incremental margins of over 40%.
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- Strong Revenue Growth: Keysight Technologies reported Q2 revenue of $1.72 billion, nearly 32% year-over-year growth, surpassing Street estimates of $1.71 billion, indicating robust performance driven by AI demand.
- Earnings Exceed Expectations: The company posted earnings of $2.87 per share, significantly above the consensus estimate of $2.32, reflecting strong growth across both the Communications Solutions and Electronic Industrial Solutions segments.
- Analyst Optimism: Wells Fargo raised its price target from $300 to $390 while maintaining an 'Overweight' rating, highlighting the company's benefits from the rapid expansion of AI infrastructure and strong order growth.
- Surge in Retail Sentiment: Retail sentiment for KEYS shifted from 'bullish' to 'extremely bullish', with message volumes surging 2,600% in 24 hours, showcasing investor confidence in the company's growth trajectory.
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- Toll Brothers Strong Performance: Toll Brothers reported fiscal second-quarter earnings of $2.72 per share, surpassing the $2.57 expected by analysts, with revenue of $2.51 billion also exceeding the forecast of $2.42 billion, leading to a 3% increase in stock price, reflecting market confidence in its performance.
- Target's Optimistic Sales Outlook: Target reported first-quarter earnings of $1.71 per share on revenue of $25.44 billion, both exceeding analyst expectations, resulting in a nearly 2% stock price increase, and the company raised its full-year sales outlook, indicating confidence in future growth.
- Cava Guidance Upgrade: Cava raised its full-year adjusted EBITDA guidance to between $181 million and $191 million, with shares jumping nearly 7%, while first-quarter earnings of 20 cents per share and $438 million in revenue also beat expectations, showcasing strong market performance.
See More
Keysight Introduces New RF Circuit Simulation Feature
- Design Process Capture: Keysight Technologies has launched a new capability within its RF Circuit Simulation Professional software that allows engineers to capture their design processes on an executable whiteboard, generating editable Python code that enhances design efficiency by making design decisions, simulations, and optimizations reusable.
- Addressing Talent Shortage: According to McKinsey, the semiconductor industry will require 88,000 engineers by 2029, with RF design facing an even more acute talent gap; this software helps retain and transfer critical design knowledge, mitigating the impact of senior engineer turnover on the industry.
- Workflow Automation: The new feature supports decision loops and parameter settings, enabling design teams to construct workflows visually and automatically execute simulations and design decisions, significantly reducing the manual setup time required for each iteration and improving overall workflow efficiency.
- AI-Driven Design Transformation: Keysight's EDA General Manager Nilesh Kamdar stated that the structured data and Python APIs generated by this software represent the first step towards fully automated and AI/ML-driven RF design, marking a significant advancement in the industry's shift towards intelligent design practices.
See More
Keysight Showcases Solutions at 2026 Microwave Symposium
- Key Technology Highlights: At the 2026 IEEE MTT-S International Microwave Symposium, Keysight will showcase solutions that help engineers accelerate spectrum utilization by addressing complex RF design and validation challenges, which is expected to enhance client design efficiency in wireless, aerospace, and 6G applications.
- AI-Driven Design Optimization: By demonstrating AI-driven workflows, Keysight will illustrate how to automate RF design tasks and accelerate optimization processes, thereby reducing development risks and improving design reuse, enabling engineers to transition faster from concept to deployment.
- Complex RF System Validation: Keysight will showcase high-fidelity signal generation technology that supports rapid validation for 5G and 6G applications, ensuring reliability in increasingly complex RF architectures, further solidifying its market leadership.
- Expert Technical Talks: During the symposium, Keysight experts will conduct multiple technical presentations covering calibration and measurement methods for phased array antennas, as well as the impact of quantum computing on the RF electronics supply chain, showcasing the company's deep expertise and industry insights in cutting-edge technologies.
See More
Keysight Launches EOE Simulation Solution for Enhanced Design Efficiency
- Design Efficiency Boost: Keysight Technologies introduces an Electrical-Optical-Electrical (EOE) simulation solution in ADS 2026, enabling engineers to simulate electrical-to-optical-to-electrical signal chains within a single design environment, thereby enhancing design efficiency to meet the growing demand for high-speed optical links.
- Cross-Domain Issue Detection: The new solution allows engineers to detect signal integrity issues across electrical and optical domains before prototyping, ensuring that electrical and optical design trade-offs are assessed early in the design cycle, which reduces costs associated with late-stage modifications.
- Nonlinear Effects Assessment: EOE simulation flows support wavelength division multiplexing, enabling engineers to evaluate optical nonlinearities affecting performance across multiple wavelengths, ensuring reliability in 800G and 1.6T optical links and enhancing overall system performance.
- System-Level Signal Quality: By modeling noise across electrical and optical domains simultaneously, engineers can assess system-level signal quality under realistic conditions, ensuring design accuracy and reliability, which enhances competitive positioning in the market.
See More
Keysight Technologies Sees Significant AI Revenue Growth
- AI Revenue Surge: Keysight's AI-related revenue in the first half of fiscal 2026 surpassed the total for fiscal 2025, indicating strong performance amid surging demand for artificial intelligence, with expectations for AI to account for nearly 20% of total sales.
- Expanded Customer Base: Keysight doubled its AI customer base year-over-year, with a core order growth rate of 48% in the first quarter, reflecting a significant increase in customer urgency for AI infrastructure, thereby enhancing the company's market position.
- Supply Chain Stability: Keysight has minimal supply chain issues, particularly with low exposure to high-bandwidth memory, ensuring continuity in production and delivery, which supports future growth potential.
- Optimistic Analyst Ratings: Susquehanna raised Keysight's price target from $415 to $425, anticipating that AI business will drive revenue growth in the coming years, supporting incremental margins of over 40%.
See More
Keysight Q2 Revenue Surges 32% Beating Expectations
- Strong Revenue Growth: Keysight Technologies reported Q2 revenue of $1.72 billion, nearly 32% year-over-year growth, surpassing Street estimates of $1.71 billion, indicating robust performance driven by AI demand.
- Earnings Exceed Expectations: The company posted earnings of $2.87 per share, significantly above the consensus estimate of $2.32, reflecting strong growth across both the Communications Solutions and Electronic Industrial Solutions segments.
- Analyst Optimism: Wells Fargo raised its price target from $300 to $390 while maintaining an 'Overweight' rating, highlighting the company's benefits from the rapid expansion of AI infrastructure and strong order growth.
- Surge in Retail Sentiment: Retail sentiment for KEYS shifted from 'bullish' to 'extremely bullish', with message volumes surging 2,600% in 24 hours, showcasing investor confidence in the company's growth trajectory.
See More
Multiple Companies Beat Earnings Estimates, Stock Movements
- Lowe's Earnings Report: Despite slightly beating earnings and revenue estimates in its first-quarter report, Lowe's shares fell nearly 2%, indicating that challenges in the macro housing market are impacting investor sentiment.
- Toll Brothers Strong Performance: Toll Brothers reported fiscal second-quarter earnings of $2.72 per share, surpassing the $2.57 expected by analysts, with revenue of $2.51 billion also exceeding the forecast of $2.42 billion, leading to a 3% increase in stock price, reflecting market confidence in its performance.
- Target's Optimistic Sales Outlook: Target reported first-quarter earnings of $1.71 per share on revenue of $25.44 billion, both exceeding analyst expectations, resulting in a nearly 2% stock price increase, and the company raised its full-year sales outlook, indicating confidence in future growth.
- Cava Guidance Upgrade: Cava raised its full-year adjusted EBITDA guidance to between $181 million and $191 million, with shares jumping nearly 7%, while first-quarter earnings of 20 cents per share and $438 million in revenue also beat expectations, showcasing strong market performance.
See More
