Keysight Technologies stock holds after strong Q3 2026 earnings beat

Keysight Technologies (US49338L1035) delivered a strong fiscal third quarter ended July 31, 2026, with revenue and earnings beating expectations and its stock trading near $311 as of August 24, 2026.

Per a financial summary dated August 24, 2026, the company reported that third quarter fiscal 2026 revenue reached $1.85 billion, up from $1.35 billion in the third quarter of 2025, while non-GAAP earnings per share rose to $3.07 from $1.72 a year earlier.

Market data as of August 24, 2026, show Keysight shares quoted at $311.68 during the afternoon session, down from a previous close of $316.13, after a year in which the stock has delivered a strong double digit return for investors.

Q3 2026 results show robust growth

An earnings release dated August 24, 2026, for the fiscal third quarter ended July 31, 2026, reported that Keysight generated revenue of $1.85 billion, compared with $1.35 billion in the third quarter of 2025. The Q3 2026 financial summary stated that this represented a year over year increase of roughly 36.5 percent in total revenue.

According to the same Q3 2026 summary, GAAP net income reached $397 million, or $2.30 per share, compared with $191 million, or $1.10 per share, in the third quarter of 2025. The report also highlighted that non-GAAP net income rose to $531 million, or $3.07 per share, compared with $297 million, or $1.72 per share, in the prior year period, reflecting significant operating leverage as revenue expanded.

The Q3 2026 release further noted that cash flow from operations in the quarter was $437 million, up from $322 million in the third quarter of 2025, while free cash flow reached $403 million compared to $291 million a year earlier. As of July 31, 2026, Keysight held $2.62 billion in cash, cash equivalents, and restricted cash, providing ample financial flexibility for continued investment and shareholder returns.

Segment performance and AI driven demand

In its fiscal third quarter 2026 results, the company reported that the Communications Solutions Group generated revenue of $1.345 billion, representing a 43 percent increase from the prior year period. The same Q3 2026 disclosure indicated that within this segment, commercial communications revenue grew 56 percent year over year, while aerospace, defense, and government revenue grew 14 percent.

The Electronic Industrial Solutions Group delivered revenue of $501 million in the fiscal third quarter of 2026, up 21 percent from the prior year, driven by demand across semiconductor, general electronics, automotive, and energy markets. This mix left total company revenue up 36.5 percent year over year in Q3 2026, underscoring how AI infrastructure, data center investments, and broader electronics testing demand are currently supporting Keysight's top line.

A separate earnings analysis dated August 24, 2026, highlighted that adjusted EPS of $3.07 in the fiscal third quarter represented a 78 percent year over year increase and exceeded a consensus estimate of $2.46. The same analysis noted that revenue climbed 36 percent to a record $1.84 billion, implying that Keysight modestly outperformed the $1.75 billion revenue level that many investors had anticipated for Q3 2026.

Guidance and analyst expectations

Commentary accompanying the fiscal third quarter 2026 results indicated that management expects revenue in the fiscal fourth quarter of 2026 to range between $1.93 billion and $1.95 billion, with adjusted EPS guidance between $3.34 and $3.40. An earnings analysis dated August 24, 2026 pointed out that both the revenue and adjusted EPS guidance ranges sit above prior Wall Street expectations, suggesting that management sees momentum continuing into the final quarter of the fiscal year.

Another market commentary published on August 24, 2026, observed that total revenue growth of 37 percent year over year in fiscal Q3 2026 was accompanied by a 56 percent increase in orders, reflecting strong demand for Keysight's testing solutions as customers expand data center and artificial intelligence infrastructure. The same discussion noted that non-GAAP earnings per share of $3.07 came in well above consensus forecasts, reinforcing the perception that Keysight's execution and pricing power remain solid.

A separate overview of analyst opinions, updated on August 25, 2026, indicated that the stock carries a consensus rating that equates to a moderate buy, with an average price target of $392.83. One recent research update cited in this overview mentioned that a major bank raised its price target on Keysight to $440 from $420 following the Q3 2026 earnings beat and the company’s higher guidance tied to AI related testing demand.

Stock performance and valuation context

Real time market data from a U.S. quote service show that Keysight shares traded at $311.68 during the early afternoon session on August 24, 2026, representing a decline of $4.45, or 1.41 percent, from a previous close of $316.13. The same quote snapshot reported that the stock opened that session at $311.09, suggesting that trading activity has been consolidating around the low $310 level following the earnings release.

Another market alert dated August 25, 2026, noted that Keysight stock opened at $310.69 in the latest trading session, characterizing the shares as trading modestly below their 50 day moving average. The alert also referenced a recent opening level of $315.95 and pointed out that revenue of $1.85 billion and EPS of $3.07 in Q3 2026 exceeded consensus estimates of $1.75 billion in revenue and $2.48 in EPS, respectively, highlighting that fundamental momentum has outpaced the share price over the short term.

Insider transaction reports disclosed that a senior vice president sold 2,000 shares at a price of $314.66 per share, for a total transaction value of $629,320, in a trade dated in late August 2026. The insider filing summary stated that the shares of Keysight were trading at $314.66 on the day of the sale, underscoring that management and insiders remain active in managing their equity holdings as the stock trades well above its levels from the prior year.

Keysight test and measurement portfolio

Keysight Technologies is best known for its portfolio of electronic design and test instrumentation, which addresses markets ranging from wireless communications and networking to automotive, aerospace, and industrial applications. In the context of fiscal 2026, the company has emphasized the role of its high performance oscilloscopes, spectrum analyzers, and network emulation platforms in supporting customers who are building out advanced 5G, 6G, and data center architectures.

Recent product discussions around the fiscal third quarter 2026 results highlight how Keysight's solutions enable customers to validate and optimize complex systems involved in artificial intelligence workloads and high speed optical connectivity. By combining hardware and software in integrated platforms, the company positions itself as a key partner for enterprises that need precise measurements and repeatable testing in demanding environments such as hyperscale data centers and defense communication networks.

Keysight stock and investor takeaways

Keysight Technologies stock trades on the New York Stock Exchange under the ticker KEYS, and recent quote data show the shares changing hands at $311.68 on August 24, 2026, during regular U.S. trading hours. This level sits below the average analyst price target of $392.83 referenced in recent coverage, reflecting that the market has not fully closed the gap between current pricing and the consensus view even after the fiscal third quarter 2026 earnings beat.

Fact box

Company: Keysight Technologies Inc.

ISIN: US49338L1035

Ticker: KEYS

Exchange: New York Stock Exchange

Price (as of August 24, 2026, 1:01 p.m. ET): $311.68 USD

Market cap: $ around 55.0 billion (as of August 24, 2026)

Sector / Industry: Electronic equipment and instruments

Index membership: S&P 500