Keysight (KEYS) Q3 FY2026 Earnings Call: AI Demand Drives 36% Revenue Growth
Source Tradingkey
Key Takeaways
- Keysight Technologies (NYSE: KEYS) reported fiscal Q3 2026 revenue of $1.846 billion, up 36% year over year on a reported basis and 31% on a core basis.
- Orders reached $2.91 billion, rising 56% reported and 52% core. Management said demand was broad-based, with no unusual order pull-ins.
- Operating margin expanded 820 basis points to 33.2%, while net income was $531 million and earnings per share were $3.07.
- Commercial communications delivered its first $1 billion revenue quarter, led by wireline growth tied to AI data center development and manufacturing. Wireline revenue exceeded wireless revenue for the first time.
- Management expects fiscal Q4 revenue of $1.930 billion to $1.950 billion and EPS of $3.34 to $3.40. At the midpoints, these imply year-over-year growth of 37% and approximately 76%, respectively.
- Demand is not the near-term constraint, according to management. Component availability and supply-chain capacity could limit the conversion of backlog into revenue over the next two quarters.
Key Financial Data
| Metric | Fiscal Q3 2026 | Year-over-year change / context |
|---|---|---|
| Orders | $2.91 billion | Up 56% reported; up 52% core |
| Revenue | $1.846 billion | Up 36% reported; up 31% core |
| Gross margin | 69.0% | Management views the upper-60% range as sustainable, subject to mix |
| Operating expenses | $661 million | — |
| Operating margin | 33.2% | Up 820 basis points |
| Net income | $531 million | — |
| EPS | $3.07 | — |
| Operating cash flow | $437 million | Company remains on track for record fiscal 2026 operating cash flow |
| Free cash flow | $403 million | — |
| Cash and cash equivalents | $2.605 billion | Quarter-end balance |
| Share repurchases | $210 million | Approximately 640,000 shares at an average price near $326 |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
Financial Markets 2026: Volatility Catalysts in Gold, Silver, Oil, and Blue-Chip Stocks—A CFD Trader's OutlookGet a comprehensive financial market 2026 outlook exploring key economic drivers, volatility catalysts in gold, oil and stocks, and what the evolving economic outlook means for cfd trading strategies and risk management on global markets.
Get a comprehensive financial market 2026 outlook exploring key economic drivers, volatility catalysts in gold, oil and stocks, and what the evolving economic outlook means for cfd trading strategies and risk management on global markets.
Gold gains momentum to near $4,400 as Fed hike expectations drop despite Us-Iran tensionsGold price (XAU/USD) gains momentum to around $4,395 during the early Asian trading hours on Monday. The precious metal extends the rally as cooling US inflation data has dampened expectations for the US Federal Reserve (Fed) interest rate hike.
Gold price (XAU/USD) gains momentum to around $4,395 during the early Asian trading hours on Monday. The precious metal extends the rally as cooling US inflation data has dampened expectations for the US Federal Reserve (Fed) interest rate hike.
Australian Dollar gains as US Dollar struggles amid fading Fed rate hike betsAUD/USD extends its gains for the third successive day, trading around 0.7110 during the Asian hours on Tuesday. The currency pair continues to appreciate as the US Dollar (USD) remains subdued amid fading expectations for further rate hikes by the Federal Reserve (Fed).
AUD/USD extends its gains for the third successive day, trading around 0.7110 during the Asian hours on Tuesday. The currency pair continues to appreciate as the US Dollar (USD) remains subdued amid fading expectations for further rate hikes by the Federal Reserve (Fed).
WTI consolidates below $84.50, two-week top as bullish bias remains amid Hormuz standoffWest Texas Intermediate (WTI) – the benchmark US Crude Oil price – extends its consolidative price move through the first half of the European session and currently trades near the $84.25-$84.30 area, close to a two-week high set earlier this Tuesday.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – extends its consolidative price move through the first half of the European session and currently trades near the $84.25-$84.30 area, close to a two-week high set earlier this Tuesday.
