Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Keysight's fiscal Q3 FY2026 was defined by accelerating demand in AI-driven high-speed networks and defense, with total orders rising 56% year over year and the Spirent acquisition adding $61 million of incremental revenue. Management attributed the revenue growth primarily to customer R&D spending on terabit Ethernet, AI data-center infrastructure, and aerospace and defense programs. Operating margin expanded sharply on higher volume and favorable mix, even as R&D and SG&A costs rose from acquired businesses and higher people-related expenses. The main tension is a volatile tariff and trade-policy environment, including unresolved IEEPA refund claims and new forced-labor tariff exposure, as well as extended lead times and elevated backlog that could unwind if demand softens.
Revenue
$1.85B
+36.54% YoY
EPS (Diluted)
$2.30
+109.09% YoY
Operating Income
$461M
+97.01% YoY
Source: SEC XBRL
Keysight Technologies (KEYS) reported Q3 FY2026 revenue of $1.85B, up 36.5% year over year. Operating margin was 25.0%, up 7.7 points from 17.3% a year earlier. KEYS's fiscal Q3 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 3.07 | 2.52 | Beat +21.6% |
| Jun 2026 | 2.87 | 2.37 | Beat +21.2% |
| Mar 2026 | 2.17 | 2.04 | Beat +6.6% |
| Dec 2025 | 1.91 | 1.87 | Beat +2.2% |
Adjusted (non-GAAP) EPS of $3.07 versus the $2.52 analyst consensus — a +21.6% beat for Sep 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.30.
2 reported segments · SEC XBRL
Segment revenue totals $1.85B, which is the $1.85B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure KEYS itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Total orders for Q3 FY2026 were $2,091 million, up 56% year over year, and nine-month orders rose 48%. Acquisitions added 5 percentage points to quarterly order growth and 6 percentage points to nine-month growth, with orders increasing across all regions.
Source: 10-Q Item 2 MD&A
The company recorded a $100 million receivable for previously paid tariffs and accrued interest, with offsets of $93 million to cost of sales, $4 million to SG&A, and $3 million to interest income. It also recorded a $40 million customer surcharge refund liability that reduced revenue; $37 million of refunds had been received, leaving $64 million outstanding.
Source: 10-Q Item 2 MD&A
Spirent added incremental revenue of $61 million in Q3 FY2026 and $204 million in the first nine months. The acquisition complements CSG with wireless network test and assurance and positioning technology.
Source: 10-Q Item 2 MD&A
Within CSG, commercial communications revenue rose 56% year over year in the quarter, driven by customer R&D and manufacturing investment in 400G/800G/1.6 terabit Ethernet and AI data-center infrastructure.
Source: 10-Q Item 2 MD&A
On November 24, 2025, the board approved a new $1.5 billion stock repurchase program, with $983 million remaining as of July 31, 2026.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 3 high, 2 medium, 0 low
Keysight faces broad-based U.S. tariff increases, new Section 301 forced-labor tariffs, and uncertainty over IEEPA refund claims. These could raise costs, disrupt supply chains, reduce demand, and delay or reduce recovery of tariffs previously paid.
Source: 10-Q Item 1A Risk Factors
A substantial increase in order volumes, combined with manufacturing capacity constraints and supply-chain challenges, has extended lead times. Customers may over-order and then cancel, creating risk of sudden backlog reductions, excess inventory, and impairments.
Source: 10-Q Item 1A Risk Factors
The company sells and operates worldwide, with exposure to Russia sanctions, U.S.-China tensions, Taiwan instability, and regional conflicts. These conditions could limit technology transfers, disrupt facilities, and hurt sales and liquidity.
Source: 10-Q Item 1A Risk Factors
Visibility into markets is limited, and recent growth in AI-driven segments may not be sustainable. A decline in customer markets or a downturn in technology spending could reduce orders, increase pricing pressure, and harm margins.
Source: 10-Q Item 1A Risk Factors
Keysight outsources manufacturing, IT, and administrative functions, including centralized accounting in India and Malaysia. Failure by contract manufacturers or outsourced providers could delay products, impair operations, and damage reputation.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.85 $B | 1.35 $B | +36.54% |
Cost of Revenue $M | 630.00 $M | 518.00 $M | +21.62% |
Operating Income $M | 461.00 $M | 234.00 $M | +97.01% |
Net Income $M | 397.00 $M | 191.00 $M | +107.85% |
EPS (Basic) $ | 2.33 $ | 1.11 $ | +109.91% |
EPS (Diluted) $ | 2.30 $ | 1.10 $ | +109.09% |
R&D Expense $M | 312.00 $M | 250.00 $M | +24.80% |
SG&A Expense $M | 446.00 $M | 354.00 $M | +25.99% |
Answers draw on this SEC filing and the data on this page
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.
Keysight Technologies delivered strong Q1 FY2026 results with revenue surging 23.3% YoY to $1.60B and net income jumping 66.3% to $281M, driven by broad-based demand recovery across its test and measurement segments.
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