8-K: Keysight Reports Record Q1 Revenue, Double-Digit Growth

Keysight Technologies exceeded expectations in its first fiscal quarter of 2026, achieving record revenue of $1.60 billion with double-digit growth across all business segments.

Summary

• Revenue for the first fiscal quarter ended January 31, 2026, was $1.60 billion, an increase from $1.30 billion in the first quarter of 2025.
• GAAP net income reached $281 million, or $1.63 per share, compared to $169 million, or $0.97 per share, in the prior year's first quarter.
• Non-GAAP net income was $376 million, or $2.17 per share, up from $317 million, or $1.82 per share, in the first quarter of 2025.
• Cash flow from operations increased to $441 million from $378 million in the first quarter of 2025.
• Free cash flow was $407 million, compared to $346 million in the first quarter of 2025.
• As of January 31, 2026, cash, cash equivalents, and restricted cash totaled $2.20 billion.
• The Communications Solutions Group (CSG) reported revenue of $1,124 million, a 27% increase year-over-year, driven by 33% growth in commercial communications and 18% growth in aerospace, defense, and government.
• The Electronic Industrial Solutions Group (EISG) reported revenue of $476 million, up 15% from the prior year, with double-digit growth across all end markets including automotive and energy, general electronics, and semiconductor.

Sentiment

Score: 9

Explanation: StockSavvy.ai views this as a highly positive report, reflecting strong execution, market momentum, and robust financial performance that exceeded expectations, with a confident outlook for the next quarter.

Positives

• Achieved record revenue of $1.60 billion for the first fiscal quarter.
• Reported outstanding results that exceeded expectations.
• Delivered double-digit growth across all business segments.
• Communications Solutions Group (CSG) revenue grew 27% year-over-year to $1,124 million.
• Commercial communications within CSG saw robust growth of 33%.
• Aerospace, defense, and government within CSG grew 18%.
• Electronic Industrial Solutions Group (EISG) revenue increased 15% year-over-year to $476 million.
• EISG experienced double-digit growth across all its end markets: automotive and energy, general electronics, and semiconductor.
• GAAP net income significantly increased to $281 million ($1.63 per share) from $169 million ($0.97 per share) year-over-year.
• Non-GAAP net income rose to $376 million ($2.17 per share) from $317 million ($1.82 per share) year-over-year.
• Cash flow from operations improved to $441 million from $378 million.
• Free cash flow increased to $407 million from $346 million.
• Provided strong second fiscal quarter 2026 revenue guidance in the range of $1.690 billion to $1.710 billion, with the mid-point representing approximately 30% year-over-year growth.

Risks

• Impacts of global economic conditions such as inflation or recession.
• Slowing demand for products or services.
• Volatility in financial markets, reduced access to credit, and increased interest rates.
• Impacts of geopolitical tension and conflict outside of the U.S.
• Export control regulations and compliance.
• Net zero emissions commitments.
• Customer purchasing decisions and timing.
• Tariff and trade policy impacts and order cancellations.
• Other risks detailed in Keysight's annual report on Form 10-K for the period ended October 31, 2025.

Future Outlook

Keysight's second fiscal quarter of 2026 revenue is expected to be in the range of $1.690 billion to $1.710 billion, with the mid-point representing approximately 30% year-over-year growth. Non-GAAP earnings per share for the second fiscal quarter of 2026 are expected to be in the range of $2.27 to $2.33, based on a weighted diluted share count of approximately 173 million shares. This outlook does not include any potential impacts related to the February 20, 2026 Supreme Court ruling on IEEPA tariffs or subsequent actions by the U.S. administration.

Management Comments

• "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."

Industry Context

StockSavvy.ai notes that Keysight's strong double-digit growth across its Communications Solutions Group and Electronic Industrial Solutions Group, particularly in commercial communications and semiconductor markets, indicates robust demand for advanced test and measurement solutions. This performance suggests the company is effectively leveraging ongoing industry trends such as 5G deployment, increasing complexity in electronic design, and the automotive industry's shift towards electrification and autonomous driving, outperforming general market slowdowns seen in some tech sectors.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to assess against global benchmarks. However, Keysight's reported double-digit revenue growth across all segments, including 33% in commercial communications and 18% in aerospace, defense, and government, suggests a strong performance relative to the broader technology and industrial sectors, which have faced varying degrees of headwinds.

Stakeholder Impact

• Shareholders: Positive impact due to strong financial performance, record revenue, increased profitability, and positive future outlook, potentially leading to increased share value.
• Employees: Continued stability and growth, potentially leading to opportunities within the company.
• Customers: Continued innovation and delivery of market-leading design, emulation, and test solutions.
• Suppliers: Potential for continued or increased demand for components and services due to company growth.

Next Steps

• Keysight's management will present more details about its first quarter FY2026 financial results and its second quarter FY2026 outlook on a conference call with investors on February 23, 2026, at 1:30 p.m. PT.
• The webcast of the conference call will remain on the company site for 90 days.

Key Dates

Recommendation

The company delivered outstanding Q1 2026 results, exceeding expectations with record revenue and double-digit growth across all segments. The strong financial performance, coupled with robust guidance for Q2 2026, indicates significant operational momentum and effective capitalization on market opportunities. The consistent growth in key segments like commercial communications and electronic industrial solutions, along with healthy cash flow generation, positions Keysight favorably for continued expansion. This report suggests a strong underlying business with excellent execution, making it an attractive investment.

Keywords

Keysight Technologies, KEYS, financial results, Q1 2026, revenue, earnings, test solutions, measurement, communications, aerospace, defense, electronics, semiconductor, cash flow, non-GAAP