AI Takeaway
Keysight Technologies delivered a strong Q2 FY2026 with revenue surging 31.5% YoY to $1.717B and operating income nearly doubling (+96.6%) to $407M, reflecting robust demand recovery and significant operating leverage.
Revenue
$1.72B
++31.47% YoY
EPS (Basic)
$2.04
++36.91% YoY
Operating Income
$407M
++96.62% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 31.5% YoY from $1.306B to $1.717B in Q2 FY2026, signaling a strong rebound in customer demand across Keysight's test and measurement end markets after a period of softer orders.
Source: Source: 10-Q Income Statement Data
Operating margin expanded approximately 7.9 percentage points YoY to 23.7%, as revenue growth significantly outpaced cost increases. Cost of revenue rose only 9.6% YoY while revenue grew 31.5%, demonstrating strong operating leverage.
Source: Source: 10-Q Income Statement & Key Ratios Data
R&D expense rose 28.0% YoY to $320M and SG&A increased 26.7% YoY to $456M, reflecting Keysight's continued investment in innovation and go-to-market capabilities to sustain growth momentum.
Source: Source: 10-Q Income Statement Data
2 more insights available
Upgrade to unlockCurrent liabilities surged 64.1% YoY to $2.649B while current assets declined 7.8% to $5.042B, compressing the current ratio to 1.90. Although still above 1.0, this trend warrants monitoring as it could indicate rising short-term obligations or deferred revenue recognition dynamics.
Source: Source: 10-Q Balance Sheet Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.87 versus the $2.37 analyst consensus — a +21.2% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.72B | $1.31B | +31.47% |
Cost of Revenue | $539M | $492M | +9.55% |
Operating Income | $407M | $207M | +96.62% |
Net Income | $349M | $257M | +35.80% |
EPS (Basic) | $2.04 | $1.49 | +36.91% |
EPS (Diluted) | $2.02 | $1.49 | +35.57% |
R&D Expense | $320M | $250M | +28.00% |
SG&A Expense | $456M | $360M | +26.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $11.74B | $10.54B | +11.42% |
Current Assets | $5.04B | $5.47B | -7.76% |
Total Liabilities | $5.41B | $5.06B | +6.90% |
Current Liabilities | $2.65B | $1.61B | +64.13% |
Stockholders' Equity | $6.33B | $5.48B | +15.59% |
Cash & Equivalents | $2.41B | $3.12B | -22.64% |
Long-Term Debt | $2.53B | $2.53B | -0.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $942M | $862M | +9.28% |
Investing Cash FlowYTD | $-80M | $-66M | -21.21% |
Financing Cash FlowYTD | $-328M | $515M | -163.69% |
Share BuybacksYTD | $307M | $225M | +36.44% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 23.7% | 15.8% | +7.85% |
Net Margin | 20.3% | — | — |
ROE | 5.5% | — | — |
ROA | 3.0% | — | — |
Current Ratio | $1.903 | — | — |
Debt to Equity | $0.854 | — | — |
Other companies in Electronic Equipment & Instruments
Keysight Technologies reported Q2 FY2026 revenue of $1.717B, a 31.5% increase compared to $1.306B in Q2 FY2025. This strong growth reflects a significant recovery in demand across Keysight's electronic test and measurement end markets.
The standout result was operating income nearly doubling to $407M (+96.6% YoY), with operating margin expanding from 15.8% to 23.7%. Revenue grew 31.5% to $1.717B and diluted EPS rose 35.6% to $2.02, signaling a powerful cyclical recovery.
Based on the financial data, key risks include a 64.1% surge in current liabilities compressing liquidity, a 22.6% decline in cash to $2.412B driven by share buybacks, and the cyclical nature of Keysight's end markets which could reverse recent revenue gains if customer capital spending slows.
Keysight appears financially healthy with a current ratio of 1.90, debt-to-equity of 0.85, and YTD operating cash flow of $942M. However, the sharp rise in current liabilities (+64.1% YoY) and declining cash balance (-22.6% YoY to $2.412B) are trends worth monitoring.
Keysight's operating margin expanded significantly to 23.7% in Q2 FY2026, up from 15.8% in Q2 FY2025, a gain of nearly 8 percentage points. Net margin also improved to 20.3%, as cost of revenue grew only 9.6% while revenue surged 31.5%, demonstrating strong operating leverage.