Keysight Technologies reported a blowout Q3 FY26 with record orders ($2.091B, +56%), revenue ($1.846B, +36%), and EPS ($3.07, +79%). Growth was broad-based, led by AI infrastructure scaling in commercial communications (wireline) and strength in defense and EISG. Management raised Q4 and full-year guidance, citing a durable multi-year demand cycle, though supply chain constraints remain the primary limiter on near-term revenue. Orders grew 56% YoY to $2.091 billion, marking the second consecutive quarter above $2 billion; pipeline is at an all-time high.
Keysight Technologies reported a blowout Q3 FY26 with record orders ($2.091B, +56%), revenue ($1.846B, +36%), and EPS ($3.07, +79%). Growth was broad-based, led by AI infrastructure scaling in commercial communications (wireline) and strength in defense and EISG. Management raised Q4 and full-year guidance, citing a durable multi-year demand cycle, though supply chain constraints remain the primary limiter on near-term revenue. Orders grew 56% YoY to $2.091 billion, marking the second consecutive quarter above $2 billion; pipeline is at an all-time high.
Orders grew 56% year-over-year to over $2 billion for the third consecutive quarter, with pipeline at an all-time high and the company adding nearly 3,000 new customers year-to-date. Management expects record Q4 orders, but noted supply chain constraints will limit near-term…
Management highlighted strong AI-driven demand across the business, with wireline orders more than doubling year-over-year, and noted that AI is expanding beyond data center infrastructure into wireless and other end markets. The company is selling a broad portfolio of test and…
Orders grew 56% year-over-year to over $2 billion for the third consecutive quarter, with pipeline at an all-time high and the company adding nearly 3,000 new customers year-to-date. Management expects record Q4 orders, but noted supply chain constraints will limit near-term…
Management raised Q4 FY26 guidance to $1.93-1.95 billion revenue and $3.34-3.40 EPS, implying ~37% and ~76% YoY growth, respectively.
Management highlighted strong AI-driven demand across the business, with wireline orders more than doubling year-over-year, and noted that AI is expanding beyond data center infrastructure into wireless and other end markets. The company is selling a broad portfolio of test and emulation solutions for AI workloads, and sees a multi-year roadmap for AI infrastructure scaling.
Orders grew 56% year-over-year to over $2 billion for the third consecutive quarter, with pipeline at an all-time high and the company adding nearly 3,000 new customers year-to-date. Management expects record Q4 orders, but noted supply chain constraints will limit near-term revenue conversion.
Management cited strong capital investment by customers in AI infrastructure, defense modernization, and semiconductor capacity, and noted that customers are planning ahead, leading to stronger order growth. They are also investing in their own supply chain flexibility to meet demand.
Management expressed strong confidence in the demand environment and their competitive position, citing record results, growing pipeline, and a multi-year growth cycle, while acknowledging supply constraints as the main limiter.
Supply chain constraints are the primary governor of near-term revenue conversion, limiting the company's ability to fully capitalize on record demand.
“the challenges have shifted more towards incoming parts, which are under high demand as demand has ramped.”
“Supply chain will remain the governor of near-term revenue. We will have to redesign some products on the margin to accommodate second sources and enter into some more longer term agreements with our customers.”
“We've more recently said with the addition of manufacturing business and the support of the AI data center build-out, that that shifted to more like 70-30. And I think if you looked at over a shorter horizon over the last couple of quarter…”
“our largest customers are doing well, performing up high double digits for the year. And more importantly, we're really expanding our reach across their entire ecosystem.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 Q4 | $3.34–$3.40 | $3.37 | RAISED |
| Revenue | FY2026 Q4 | $1.93B–$1.95B | $1.94B | RAISED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2026 Q2 | EPS | FY2026 Q3 | $2.43–$2.49 | $3.07 | Met / beat |
| FY2026 Q2 | Revenue | FY2026 Q3 | $1.73B–$1.75B | $0B | Missed |
| FY2026 Q1 | EPS | FY2026 Q2 | $2.27–$2.33 | $2.87 | Met / beat |
| FY2026 Q1 | Revenue | FY2026 Q2 | $1.69B–$1.71B | $1.717B | Met / beat |
Venture-funded defense tech companies like Anduril are adopting Keysight's P&T solutions for testing autonomous platforms; this segment is growing but remains a small portion of Keysight's revenue.
“Demand accelerated for Spirant's P&T solutions that emulate various multi-channel jamming and spoofing scenarios in the lab...”