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Keysight boosts outlook as AI testing lifts revenue and earnings
Revenue rose 36.5% to $1.846 billion in the fiscal third quarter, and the company forecast fourth-quarter revenue above consensus.
Keysight Technologies delivered fiscal third-quarter results that management framed as evidence that AI testing is becoming a central driver of growth. Yahoo Finance reported revenue increased 36.5% to $1.846 billion, while non-GAAP earnings climbed 79% to $3.07 per share and topped consensus estimates.
Looking ahead, the company forecast fourth-quarter non-GAAP earnings of $3.34 to $3.40 per share and revenue of $1.93 billion to $1.95 billion, both above consensus estimates, according to Yahoo Finance. Shares rose nearly 5% after hours on August 18 following the report.
Orders increased 56% to $2.091 billion, the second consecutive quarter above $2 billion, extending visibility beyond revenue already recognized. Yahoo Finance also noted that communications solutions revenue reached $1.345 billion, up 43% on a reported basis and 36% on a core basis, alongside a 56% jump in commercial communications.
Profitability and cash generation improved as well. Yahoo Finance reported non-GAAP operating margin in the Communications Solutions Group expanded to 34% from 26%, the Electronic Industrial Solutions Group margin rose to 31% from 22%, and free cash flow increased to $403 million from $291 million.