Keysight Technologies (KEYS) delivered stronger-than-expected fiscal Q4 results, supported by solid demand across all major segments and a rising contribution from AI in its wireline business, Morgan Stanley said Tuesday in a report.

Keysight "surprised us with the strength" of fiscal Q4 orders and margins, the report said. "The breadth of upside across the businesses, and quicker tariff mitigation, positions the company better heading into FY26 than contemplated."

Orders rose 14% to $1.5 billion, driven by strength across its electronic industrial solutions group and aerospace and defense segment, while AI accounted for about half of wireline demand, or 12% of revenue, the report said.

Morgan Stanley raised its fiscal 2026 earnings estimate to $7.96 a share from $7.78 and boosted the revenue outlook to $6.15 billion from $5.65 billion.

The firm raised its price target on Keysight stock to $208 from $180 and maintained its equal weight rating.

Keysight shares rose 7.4% in recent Tuesday trading.

Price: 190.83, Change: +13.16, Percent Change: +7.41