Shares of Keysight Technologies surged after Tuesday's closing bell after the test-equipment maker posted better-than-expected fiscal second-quarter profit and issued quarterly guidance well above Wall Street expectations.
Keysight stock jumped 9% in after-hours trade after ending the regular trading session on Tuesday up 1% to $344. While shares have trended lower this week, the stock remains up 68% in 2026.
For the quarter ending April 30, Keysight Technologies posted adjusted earnings of $2.87 a share, compared with $1.70 a share a year ago and above Wall Street's call for $2.32 a share. Revenue grew 32% to $1.72 billion, just topping the analyst consensus view of $1.71 billion, according to FactSet.
The company's communications solutions segment reported revenue of $1.23 billion, up from $913 million last year. Meanwhile, Keysight's electronic industrial solutions business saw sales total $486 million compared with $393 million a year ago.
The company's financial performance came on the back of orders doubling to $2.05 billion. Keysight also reported $100 million in refunds from tariffs.
"Keysight delivered the strongest quarter in the company's history," CEO Satish Dhanasekaran said in the earnings release, noting there is "strong year-to-date momentum and a robust pipeline of opportunities."
For the fiscal third-quarter, Keysight expects adjusted profit between $2.43 a share and $2.49 a share with a revenue range of $1.73 billion to $1.75 billion. Analysts called for third-quarter earnings of $2.16 a share with sales totaling $1.65 billion, according to FactSet.
Keysight stock is currently about 7% below its record closing high of $366.68 from May 6 and has galloped 125% higher over the past 12 months, accord to Dow Jones Market Data.
Susquehanna on Monday raised its price target on Keysight Technologies to $415 from $300, maintaining a Positive rating on the shares on expectations of an earnings "beat and raise."
Keysight Technologies is a global leader in electronic design, emulation, and testing. The company provides hardware, software, and services needed to develop, validate, and manufacture different technologies.
Much of Keysight's current momentum is driven by high-speed networking and AI. With AI infrastructure rapidly scaling, hyperscalers and their respective ecosystems are investing in designing and deploying new AI architectures.
The company has engaged with hyperscalers on AI innovations and is experiencing a boost as the industry moves to higher speeds and ethernet-based AI networking, creating more test opportunities for Keysight.
The test-equipment and tech hardware company's partners include Amazon.com, Alphabet, Microsoft, Intel, and others.
