Keysight Q3 Earnings Lift Outlook On AI Demand
Keysight Q3 earnings show record revenue as management cites AI data-center demand and lifts Q4 and FY2026 outlook, reinforcing orders momentum.
KEY TAKEAWAYS
- Keysight posted record Q3 revenue of $1.8 billion and non-GAAP EPS $3.07.
- Orders climbed to $2.1 billion, reinforcing demand momentum.
- Management raised Q4 and full-year 2026 outlook, citing a rapid AI data-center buildout.
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Keysight Technologies (KEYS) reported record third-quarter results and raised its fourth-quarter and full-year 2026 outlook in a press release on Aug. 18, 2026. Management attributed the stronger demand to a rapid AI data-center buildout.
Record Quarter and Financial Results
For the quarter ended July 31, 2026, Keysight reported revenue of $1.8 billion, up from $1.4 billion a year earlier. Orders rose to $2.1 billion from $1.3 billion in the prior-year quarter. Cash, cash equivalents, and restricted cash totaled $2.6 billion at quarter end.
Non-GAAP net income reached $531 million, or $3.07 per share, compared with $297 million, or $1.72 per share, in the same period last year. On a GAAP basis, net income was $397 million, or $2.30 per share, versus $191 million, or $1.10 per share, a year earlier.
Cash flow from operations was $437 million, with free cash flow at $403 million.
Outlook and AI Data Center Demand
Keysight raised its outlook for both the fourth fiscal quarter and full fiscal 2026. Independent reporting linked the forecast increase to accelerating demand from AI data-center expansion, with the company expecting fourth-quarter profit and revenue above prior estimates.
Satish Dhanasekaran, president and CEO, said, “Keysight’s record Q3 results and outlook reflect the growing relevance of our strategy and portfolio.”
