Keysight Technologies (KEYS) investor relations material

Executive summary

• Achieved record Q3'26 results with revenue of $1.846B, up 36% year-over-year, and orders exceeding $2B, up 56% year-over-year.

• Delivered double-digit growth across all business segments and regions, with margin expansion and record non-GAAP EPS of $3.07, up 79% year-over-year.

• GAAP net income was $397M ($2.30 per diluted share), more than double the prior year.

• Robust free cash flow of $403M and significant share repurchases of approximately $210M in Q3.

• Integration of recent acquisitions completed ahead of schedule, with 80-90% of $100M cost synergies expected by Q4'26.

Financial highlights

• Q3'26 revenue reached $1.846B (+36% y/y, +31% core), with orders at $2.091B (+56% y/y, +52% core).

• Non-GAAP operating margin expanded to 33.2% (+820 bps y/y); gross margin at 69.0% (+510 bps y/y).

• Non-GAAP EPS was $3.07 (+79% y/y); robust free cash flow of $403M for the quarter.

• Cash, cash equivalents, and restricted cash stood at $2.62B as of July 31, 2026.

• Q3'26 segment revenue: Communications Solutions Group (CSG) $1,345M (+43% y/y), Electronic Industrial Solutions Group (EISG) $501M (+21% y/y).

Outlook and guidance

• Q4'26 revenue guidance: $1.930B–$1.950B, implying FY26 revenue of $7.103B (+37% y/y).

• Q4'26 non-GAAP EPS guidance: $3.34–$3.40, implying FY26 non-GAAP EPS of $11.48 (+60% y/y).

• FY26 revenue growth expected in the low 30% range, with non-GAAP EPS growth around 60%.