Keysight Technologies Reports Strong First Quarter 2026 Results
February 23, 2026 – Keysight Technologies, Inc. (NYSE: KEYS) has announced robust financial results for the first fiscal quarter ending January 31, 2026. The company has demonstrated significant growth, exceeding expectations and reflecting a positive trajectory for the remainder of the fiscal year.
1. Solid Performance and Revenue Growth
Keysight's President and CEO, Satish Dhanasekaran, remarked on the strong start to the fiscal year, stating, “Keysight had a strong start to the fiscal year with outstanding results that exceeded our expectations. The investments we have made over the last 3 years are enabling us to capitalize on continued momentum in our markets and deliver value.”
First Quarter Financial Summary
The financial highlights for the first quarter are as follows:
- Total Revenue: $1.60 billion, a notable increase from $1.30 billion in the same period last year.
- GAAP Net Income: $281 million, or $1.63 per share, compared to $169 million, or $0.97 per share in Q1 2025.
- Non-GAAP Net Income: $376 million, or $2.17 per share, up from $317 million, or $1.82 per share in the year-ago quarter.
- Cash Flow from Operations: $441 million, an increase from $378 million in Q1 2025.
- Free Cash Flow: $407 million, compared to $346 million in the previous year.
- Cash Position: As of January 31, 2026, the company reported cash, cash equivalents, and restricted cash totaling $2.20 billion.
These figures underscore Keysight's ability to enhance profitability while maintaining a healthy cash flow, positioning the company favorably for future investments and growth.
2. Segment Analysis
Communications Solutions Group (CSG)
The Communications Solutions Group (CSG) was a significant driver of Keysight’s revenue growth, reporting:
- Revenue: $1,124 million, marking a 27% increase year-over-year.
- Highlights: This growth was propelled by a remarkable 33% increase in commercial communications and an 18% rise in aerospace, defense, and government sectors.
Electronic Industrial Solutions Group (EISG)
The Electronic Industrial Solutions Group (EISG) also experienced notable growth, with:
- Revenue: $476 million, reflecting a 15% increase from the prior year.
- Growth Drivers: The EISG sector benefited from double-digit growth across various end markets, including automotive, energy, general electronics, and semiconductors.
3. Future Outlook
Looking ahead, Keysight anticipates continued growth in its second fiscal quarter of 2026. The company projects revenue to be in the range of $1.690 billion to $1.710 billion, representing an estimated year-over-year growth of approximately 30%. Furthermore, non-GAAP earnings per share for Q2 are expected to fall between $2.27 and $2.33, based on a weighted diluted share count of approximately 173 million shares.
It is important to note that this outlook does not account for potential impacts stemming from the February 20, 2026, Supreme Court ruling on IEEPA tariffs or subsequent actions by the U.S. administration. As such, certain items affecting the GAAP tax rate are not currently estimable with a reasonable degree of accuracy, and no reconciliation of GAAP earnings per share to non-GAAP has been provided.
4. Conclusion
Keysight Technologies' first quarter results reflect a company that is not only maintaining its competitive edge but also strategically positioning itself for future growth. With strong revenues, impressive net income, and a solid cash position, Keysight appears poised to navigate the complexities of its market effectively. As the company continues to leverage its investments and capitalize on market momentum, stakeholders can look forward to promising developments in the upcoming quarters.
