Keysight Technologies Reports 23% Revenue Growth to $1.6 Billion in Latest Quarter

Keysight Technologies, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $1.6 billion for the three months ended January 31, 2026, a 23% increase from $1.3 billion in the same period last year. The company's net income also rose sharply to $281 million, compared to $169 million in the prior year, reflecting a 67% increase. This growth was attributed to higher revenue across both the Communications Solutions Group (CSG) and the Electronic Industrial Solutions Group (EISG), as well as a favorable tax benefit from a recent audit settlement.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. Total orders for the quarter increased by 30% year-over-year, driven by strong demand across all regions. The CSG segment, which includes commercial communications and aerospace, defense, and government markets, generated $1.1 billion in revenue, a 27% increase from the previous year. Meanwhile, the EISG segment reported $476 million in revenue, up 15% year-over-year. The increase in revenue was further supported by the acquisition of Spirent Communications plc, which contributed an additional $88 million in revenue during the quarter.

Keysight's strategic developments included several acquisitions aimed at enhancing its product offerings and market position. In addition to the Spirent acquisition, the company also acquired Synopsys’ Optical Solutions Group for $581 million and Ansys’ PowerArtist for $26 million. These acquisitions are expected to expand Keysight's capabilities in design engineering software and computer-aided engineering, aligning with the company's focus on next-generation technologies such as AI and 5G. The company’s employee headcount increased to approximately 16,600, up from 15,400 a year earlier, reflecting the integration of new talent from these acquisitions.

Operationally, Keysight reported a gross margin of 62.2%, slightly down from 63.1% in the previous year, primarily due to the impact of tariffs and increased costs associated with acquisitions. The company’s research and development expenses rose by 22% to $303 million, reflecting ongoing investments in key growth opportunities. Additionally, selling, general, and administrative expenses increased by 24% to $447 million, driven by higher costs related to acquired businesses and personnel. The company’s cash and cash equivalents stood at $2.2 billion as of January 31, 2026, up from $1.9 billion at the end of the previous fiscal year.

Looking ahead, Keysight remains optimistic about its growth trajectory, driven by continued investments in R&D and the expansion of its product portfolio. The company anticipates ongoing demand for its solutions in emerging technologies, including AI, industrial IoT, and next-generation communication systems. Keysight is closely monitoring macroeconomic factors, including tariffs and geopolitical tensions, but maintains confidence in its ability to navigate these challenges and capitalize on long-term growth opportunities in its markets.