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Live: Will Keysight Technologies Fall After Tonight’s Q3 Earnings? Shares Are Down 7% Today
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Quick Read
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KEYS reports Q3 FY2026 earnings after the close today, with guidance calling for 29% revenue growth and EPS up 43% YoY.
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H1 AI revenue already surpassed all of 2025 in just six months, sizing at between $500M and $600M as hyperscaler infrastructure spending accelerates.
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Shares up 77% YTD at a 57x P/E, making a clean beat with a raised Q4 bar essential to defending the rally.
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Keysight’s AI Boom Faces a High-Stakes Test with Tonight's Q3 Earnings
Live
Keysight Technologies reports fiscal third-quarter earnings at 4:05 PM ET after the closing bell today, with guidance pointing to roughly 29% year-over-year revenue growth at the midpoint.
The company enters the report with significant momentum after generating more AI-related revenue during the first half of fiscal 2026 than it did throughout all of 2025.
Management has sized Keysight’s AI infrastructure business at about $500-$600 million, with demand benefiting from the massive buildout in data centers, networking and advanced computing. This increasingly positions Keysight as an indirect way to invest in rising hyperscaler capital spending.
However, much of that optimism may already be reflected in the stock. Keysight has soared 65% year to date and nearly 7% in the past month.
Wall Street remains bullish, with 10 Buy ratings and an average price target of $388.33, but that also raises the bar for tonight’s results. A clean beat paired with stronger fourth-quarter guidance would reinforce the multi-year AI infrastructure thesis.
Keysight Technologies (NYSE:KEYS | KEYS Price Prediction) reports Q3 FY2026 results today at 4:05 PM ET after the market closes. With the stock up 102.85% over the past year but down 7.3% today, this earnings report will test whether AI test and measurement demand can drive a record-setting year for Keysight.
Momentum Meets a Higher Bar
Last quarter was, by CEO Satish Dhanasekaran’s own words, “the strongest quarter in the company’s history.” Q2 revenue hit $1.717 billion, growing 31.47% YoY, while non-GAAP EPS of $2.87 beat expectations.
Orders reached $2.51 billion, up 56% YoY, with book-to-bill above 1.0x. CSG operating margin expanded to 33% from 26% a year earlier, and free cash flow hit a record $472 million. Management raised the FY2026 outlook to high 20% revenue growth.
Consensus Estimates
| Metric | Q3 FY2026 Guidance | YoY Change |
|---|---|---|
| Revenue | $1.730B to $1.750B | +29% |
| Non-GAAP EPS | $2.43 to $2.49 | +43% |
Guidance implies a modest sequential dip from Q2’s record, which management attributed to product mix and NPI ramp timing. The Street expects EPS of $2.48, right at the high end of the range.
What I’m Watching Tonight
Tonight, I’ll be watching the company’s book-to-bill ratio first. Orders grew 48% on a core basis last quarter, and any deceleration could call the AI runway thesis into question.
Commercial Communications will be an important segment to watch, having grown 40% YoY on wireline strength tied to 800-gig, 1.6-terabit, and silicon photonics validation work. The CFO flagged 59% incremental margins in Q2. Sustaining anything near that at these growth rates would extend the company’s operating leverage story.
I’ll also watch aerospace and defense, where European demand is accelerating, plus commentary on the Synopsys, Ansys, and Spirent integrations tracking to $375 million in FY26 contribution. Any updates on 6G standardization from next month’s 3GPP meeting in Singapore would matter for the FY2027 setup.
Earnings History
| Quarter | EPS Surprise | Earnings Day Move | 1-Week Move | 30-Day Move |
|---|---|---|---|---|
| Q2 FY2026 | +23.69% | -0.59% | -0.86% | +3.07% |
| Q1 FY2026 | +8.75% | +23.05% | +0.35% | -6.77% |
| Q4 FY2025 | +4.16% | +10.01% | +5.70% | +5.83% |
| Q3 FY2025 | +2.88% | -3.04% | +4.11% | +12.18% |
On average, shares moved +2.33% seven days after earnings over the past year.
Contact [email protected] for any questions or corrections.
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
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