KEYS Q2 revenues jump 31% on AI data center and chip demand, but sales miss estimates despite earnings beat.
Keysight Technologies, Inc. (KEYS) Q2 2026 Earnings Call Transcript
Although the revenue and EPS for Keysight (KEYS) give a sense of how its business performed in the quarter ended April 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Keysight (KEYS) came out with quarterly earnings of $2.87 per share, beating the Zacks Consensus Estimate of $2.33 per share. This compares to earnings of $1.7 per share a year ago.
Keysight Technologies NYSE: KEYS reported what executives described as the best quarter in the company's history, with fiscal second-quarter orders surpassing $2 billion and revenue rising sharply across its communications and electronic industrial businesses.
Keysight Technologies is entering a multi-year monetization phase, driven by record Q1 results and strong AI and 6G demand. Record $2.75B backlog and 30% YoY order growth provide exceptional visibility into Q2 and Q3, supporting robust FY26 and FY27 guidance. KEYS is rated buy with a $420 price target, justified by AI infrastructure leadership, Spirent synergies, and margin expansion despite a high valuation.
Beyond analysts' top-and-bottom-line estimates for Keysight (KEYS), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended April 2026.
KEYS heads into fiscal Q2 earnings with strong revenue growth expectations, driven by product launches, collaborations and segment strength.
Keysight Technologies has delivered an 80%+ YTD return and nearly 200% since March 2025 lows, far outperforming benchmarks. KEYS is expected to report Q2 earnings of $2.32/share and $1.17B in revenue, implying 30%+ YoY growth; Q1 saw 23% revenue growth and 30% order growth. A Hold rating is assigned ahead of Q2 earnings, with technical signals suggesting likely near-term consolidation before the next sustained rally.
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Keysight (KEYS) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Keysight Technologies is rated a BUY, positioned as a critical enabler of AI infrastructure rather than a traditional test and measurement company. KEYS benefits from exposure to multiple secular growth cycles—AI, data center networking, semiconductors, defense, and advanced connectivity—driving strong revenue and order momentum. Despite a premium valuation (forward P/E 40.4x, EV/EBITDA 32.3x), I see justification in KEYS's structural growth, robust margins, and expanding AI-related demand.