Keysight Technologies, Inc.KEYS is set to release third-quarter fiscal 2026 results on Aug. 18, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 23.18%. It pulled off a trailing four-quarter earnings surprise of 9.46%, on average, beating estimates on all occasions.
Keysight is expected to report year-over-year revenue growth, driven by steady demand for its electronic design and test solutions. Growth across semiconductor, AI infrastructure and data-center markets, along with new product launches, is likely to have aided its overall quarterly performance.
Factors at Play
During the third quarter of fiscal 2026, Keysight introduced its GHz-class, high sample-rate oscilloscope with 12-bit resolution, expanding its high-performance measurement product lineup. The new oscilloscope is likely to have supported revenue growth through customer orders and sales across semiconductor, electronics, AI infrastructure and high-speed digital applications, while strengthening its position in advanced testing solutions.
During the quarter under review, Keysight expanded its photonic design automation portfolio with system-level simulation following the acquisition of VPIphotonics. The acquisition is likely to have contributed incremental revenues while expanding the company’s software offerings for optical communications, data centers and photonic system design.
Keysight added GlobalFoundries’ (GF) silicon-photonics support to its Advanced Design System (ADS) platform during the July quarter. The availability of the GF photonics process design kit is likely to have spurred revenue growth by expanding adoption of ADS Photonic Designer and related simulation software among customers developing silicon-photonic solutions for AI and high-speed data-center applications.
During the to-be-reported quarter, Keysight also introduced its Executable RF Design Whiteboard, a new capability designed to capture and reuse RF design methodologies within its simulation environment. The feature is likely to have a positive impact on third-quarter software revenues by increasing the value of its RF design tools, encouraging software upgrades and strengthening adoption among semiconductor and wireless design customers.
For the July quarter, the Zacks Consensus Estimate for revenues is pegged at $1.75 billion, indicating an increase from the year-ago quarter’s $1.35 billion. The consensus estimate for adjusted earnings per share is pegged at $2.46, implying growth from $1.72 reported in the prior-year quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Keysight for the third quarter of fiscal 2026. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Micron Technology, Inc.MU has an Earnings ESP of +3.09% and sports a Zacks Rank #1 at present. It is set to release its fourth-quarter fiscal 2026 numbers on Sept. 23.Â
The Earnings ESP for Analog Devices, Inc.ADI is +2.37%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report third-quarter fiscal 2026 numbers on Aug. 19.
The Earnings ESP for NVIDIA CorporationNVDA is +0.52%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter fiscal 2027 numbers on Aug. 26.
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