Keysight Q3 2026: A 24% EPS Beat Fueled by AI Test Demand
As seen on the 24/7 Wall St. homepage on August 18, 2026.
Sellers who marked Keysight down 7% into the earnings report bet against the wrong quarter: commercial communications revenue jumped 56% as AI data center test demand accelerated. Management raised the full-year outlook, with Q4 revenue guided to $1.93B to $1.95B.
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Keysight Technologies posted adjusted earnings per share of $3.07 for its fiscal third quarter of 2026, beating expectations by nearly 24% after shares had already sold off 7% into the earnings report.
Commercial communications revenue surged 56% year over year as demand for AI data center testing accelerated.
Total revenue reached $1.846 billion, beating expectations and growing 36.5% year over year.
Management raised its full-year outlook and guided Q4 revenue to a range of $1.93 billion to $1.95 billion.
Export controls, tariff and trade policy uncertainty, geopolitical tensions, and volatility in customer purchasing timing all appear in the company's own risk disclosures. The question is whether AI data center buildout keeps test demand at this pace.
Mentioned: KEYS