Abstract

Keysight Technologies will release fiscal first-quarter 2026 results on February 23, 2026 Post Market, with consensus pointing to accelerating top-line and earnings growth versus last year as investors weigh stronger order momentum across core communications and government-related programs.

Market Forecast

Based on the company’s latest projections and market expectations, revenue is estimated at 1.54 billion for the current quarter, up 20.69% year over year, with EBIT at 391.17 million (up 21.56% year over year) and adjusted EPS at 1.995 (up 18.11% year over year). Though margin guidance was not provided in the forecast, investors will watch the interplay between mix, price realization, and services intensity for clues on gross profit margin and net profit margin trajectory. The main business is set to be driven by near-term test and measurement needs in high-speed communications and adjacent software-driven workflows; recent wins and collaborations point to continued strength in complex network validation and device characterization. The most promising segment is Communications Solutions, which generated 660.00 million last quarter; company-level revenue increased 10.26% year over year in that period, underscoring a strengthening demand environment into the current quarter.

Last Quarter Review

Keysight Technologies delivered a solid prior quarter with revenue of 1.42 billion (up 10.26% year over year), a gross profit margin of 61.24%, GAAP net profit attributable to the parent company of 229.00 million, a net profit margin of 16.14%, and adjusted EPS of 1.91 (up 15.76% year over year), supported by operating leverage and healthy mix across solution lines. One financial highlight is that revenue exceeded the prior estimate by 34.70 million, while GAAP net profit rose 19.90% quarter over quarter, reflecting stronger cost control and demand recovery effects. By segment, Communications Solutions led with 660.00 million, Electronic Industrial Solutions contributed 429.00 million, and Aerospace, Defense and Government posted 330.00 million; company-level revenue increased 10.26% year over year, confirming momentum into the fiscal year.

Current Quarter Outlook (with major analytical insights)

Communications Solutions

The Communications Solutions segment remains the key swing factor for near-term growth, and last quarter’s 660.00 million underlines its centrality to overall performance and visibility into ongoing customer programs. Management’s current-quarter revenue estimate of 1.54 billion alongside EPS of 1.995 suggests that software-enabled and high-complexity test stacks continue to see robust utilization rates at customers deploying higher-speed interconnects and advanced networking architectures. The latest forecast points to double-digit year-over-year expansion for the broader business, implying that higher-throughput test engagements are set to scale further in this quarter’s delivery window. Partnership updates indicate active engagement with cutting-edge network initiatives. Keysight recently collaborated with Airbus on the SpaceRAN demonstrator to advance 5G non-terrestrial network capabilities through software-defined satellite technology, which aligns with demand for rigorous validation across satellite-based communications. Separately, a memorandum of understanding involving MediaTek, Airbus, Keysight, and ST Engineering iDirect highlights continued work on 5G/6G non-terrestrial networks in Singapore, extending visibility into complex systems testing for beyond-terrestrial use cases. These collaborations do not immediately translate into revenue attribution but strengthen the pipeline of test solutions and increase downstream demand for validation suites tied to space-to-ground and satellite-augmented communications. Execution risks in the segment revolve around large customers’ capital allocation timing and the cadence of delivery milestones for newer technologies. Mix normalization against high-margin consulting and software is an additional factor in translating top-line strength into gross profit margin expansion. That said, last quarter’s 61.24% gross profit margin and 16.14% net profit margin suggest a solid base from which price/mix dynamics can support earnings, and the forecasted adjusted EPS increase of 18.11% year over year indicates profitable growth in the quarter under review.

Aerospace, Defense and Government

Aerospace, Defense and Government contributed 330.00 million in the prior quarter and serves as a stabilizer for near-term bookings when commercial activity cycles. The segment’s multi-year programs, specialized compliance requirements, and rigorous test workflows can sustain utilization even when commercial projects pause, helping to balance revenue seasonality. In the current quarter, investors will look for comments on program timing and expansions, given the presence of high-intensity technical validation needs across secure communications, positioning, electronic warfare, and satellite-linked networks. The announced collaboration with Airbus on SpaceRAN highlights evolving validation regimes for non-terrestrial network systems, and Keysight’s involvement positions its solutions to address sophisticated performance test matrices for satellite-to-ground communications and integrated terrestrial/non-terrestrial handover. Separately, workstreams associated with aligning test methodologies to emerging standards can add depth to the product pipeline and service engagements, which can buttress near-term EBIT conversion if project milestones are achieved on schedule. The EBIT forecast of 391.17 million and year-over-year growth of 21.56% reflect the broader company’s operating momentum, and if government-linked programs deliver as planned, ADG can aid overall earnings resilience. Key watch items include timing of project completions, hardware shipments for complex platforms, and services intensity inside these engagements. While margin guidance was not explicitly provided for the quarter, higher-value service components typically support gross profit leverage; last quarter’s net profit margin of 16.14% offers a baseline to contextualize potential upside if service contributions remain robust. Commentary on pipeline depth, including non-terrestrial networks-related systems validation, will be crucial for gauging ADG’s impact on full-year conversion.

Stock Price Drivers This Quarter

The most direct driver is the top-line result against the 1.54 billion revenue estimate and whether adjusted EPS at 1.995 benefits from mix improvements and disciplined cost management. A beat on revenue and EPS relative to the year-over-year benchmarks (20.69% growth in revenue and 18.11% growth in EPS) would likely reaffirm momentum across customer programs and sharpen visibility into subsequent quarters. Conversely, a lighter revenue outcome would pivot attention to the order book, with investors parsing backlog trajectory and commentary on near-term conversion rates. Operational focus areas include service and software intensity as levers for margins. Last quarter’s record services activity was notable, and if services again scale materially, gross profit margin could remain supported even with elevated delivery volumes across hardware-heavy projects. There is also sensitivity to delivery timing for complex test suites linked to advanced optical and network validation, where slight shifts in customer schedules can push revenue between reporting periods. Investors will scrutinize management’s color on pricing conditions, project-level economics, and any modularization of offerings that enhance scalability and margin sustainability. A second stock-price driver is the update on major collaborations and product introductions. The Airbus SpaceRAN initiative and 5G/6G non-terrestrial networks memorandum point to expanding solution footprints. In parallel, Keysight introduced a machine learning toolkit within its device modeling suite, aimed at accelerating process design kit development and model optimization. Investors will look for traction indicators—such as engagement counts, bundled software adoption metrics, or new customer cohorts—that validate cross-selling of high-value software and services. The combination of hardware, software, and ML-enabled modeling can deepen customer lock-in and raise lifetime solution value. Finally, commentary on near-term demand conditions will guide expectations. Last quarter, revenue rose 10.26% year over year and GAAP net profit increased 19.90% quarter over quarter, signaling recovery and disciplined execution. If management points to firm multi-quarter visibility, that would support confidence in sustaining the EBIT growth pace of 21.56% year over year implied by the forecast. If caution emerges around project starts or customer budget phasing, the market’s reaction will hinge on how the company frames backlog coverage and services contributions as offsets.

Analyst Opinions

The majority view is bullish. Within the covered window, four institutions maintained or raised constructive stances versus one neutral rating, translating to roughly 80% bullish versus 20% non-bullish. Susquehanna’s Mehdi Hosseini reiterated a Buy rating and lifted the price target to 225.00, citing strong growth prospects and strategic actions that enhance solution breadth. J.P. Morgan’s Samik Chatterjee maintained a Buy with a 200.00 price target, emphasizing execution consistency and healthy near-term earnings trajectory. Goldman Sachs kept a Buy stance while nudging its target to 243.00, reflecting confidence in top-line acceleration and earnings leverage. Barclays maintained an Overweight rating and increased its target to 232.00, acknowledging expanding pipelines and favorable mix trends observed across solutions. The bullish case centers on the convergence of multi-domain test needs with software-enriched workflows that sustain price realization and services attachment. Analysts point to accelerating order intake tied to high-performance networking, advanced device characterization, and complex system validation, which in turn aligns with the company’s current-quarter projections: revenue up 20.69% year over year to 1.54 billion and adjusted EPS up 18.11% year over year to 1.995. The view also recognizes the role of collaborations—such as the Airbus SpaceRAN initiative and the 5G/6G non-terrestrial networks memoranda—in extending demand horizons for solutions that blend hardware, software, and advanced modeling. Where near-term valuation debates exist, bullish analysts argue that execution remains disciplined, services intensity is supportive of margins, and forecasted EBIT growth of 21.56% year over year offers tangible evidence of operating momentum. In this context, the consensus leans toward a constructive risk-reward into the print. The last quarter’s revenue beat relative to internal estimates and the 19.90% quarter-on-quarter increase in GAAP net profit set a foundation for confidence in current-quarter delivery. If revenue lands around 1.54 billion and EPS approximates 1.995, as indicated by projections, bullish analysts expect a supportive narrative for subsequent quarters, given visibility from ongoing programs and collaboration-driven solution roadmaps. The focus will be on how management frames mix dynamics, margin sustainability, and services growth—key elements that underpin the earnings power thesis highlighted by the majority of covering analysts.