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Will Healthy Y/Y Revenue Growth Boost Keysight's Q2 Earnings?
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Key Takeaways
Keysight is expected to post Q2 revenue growth, supported by strength across both business segments.
Keysight expanded its Virtual Manufacturing portfolio with new assembly simulation tools.
KEYS is benefiting from collaborations aimed at expanding advanced network technologies.
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to report second-quarter fiscal 2026 results on May 19, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 4.58%, on average.
Based in Santa Rosa, CA, the leading electronic design company is expected to report higher year-over-year revenues, backed by strength in both segments. Management’s focus on expanding its business through collaborations with established players in various sectors is a tailwind.
Factors at Play
During the quarter, Keysight introduced hands-on semiconductor teaching labs for universities. These labs provide practical training, helping students gain real-world skills in chip design, testing, and measurement to better prepare for careers in the semiconductor industry. It also launched SBOM Manager to help organizations comply with evolving global cybersecurity regulations. The solution improves software transparency, manages vulnerabilities, and strengthens security by providing better visibility into software components and supply chain risks.
The company expanded its Virtual Manufacturing portfolio by adding assembly simulation, enabling engineers to test and optimize manufacturing processes digitally, reduce errors, and improve efficiency before physical production begins. These developments are likely to have a positive impact on the company’s upcoming results.
In the quarter under review, Keysight formed a collaboration with Qualcomm to accelerate the development of Advanced 5G and 6G network capabilities. It is also collaborating with AttoTude to develop advanced signal analysis solutions for THz interconnects. The partnership aims to improve high-speed data transmission, enabling next-generation chip and communication technologies. Strategic collaboration with industry leaders to expand portfolio offerings and accelerate innovation is a positive factor.
For the second quarter of fiscal 2026, the Zacks Consensus Estimate for revenues is pegged at $1.72 billion, indicating year-over-year growth from $1.32 billion. The consensus estimate for adjusted earnings per share is pegged at $2.33, suggesting an improvement from the $1.7 per share reported a year ago.
The Zacks Consensus Estimate for revenues in the Commercial Solutions Group is pegged at $1.25 billion, indicating growth from $913 million a year ago. Revenues from Electronics Industrial Solutions are projected at $467.52 million, indicating growth from $393 million in the year-ago quarter.
Earnings Whispers
Our proven model predicts a likely earnings beat for Keysight in the fiscal second quarter. 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 exactly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.86%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Advance Auto Parts (AAP - Free Report) is set to release its first-quarter 2026 numbers on May 21. It has an Earnings ESP of +11.18% and carries a Zacks Rank #2 at present.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +0.24%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report first-quarter fiscal 2027 numbers on May 20.
The Earnings ESP for Lowe's Companies (LOW - Free Report) is +0.57%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report first-quarter 2026 numbers on May 20.
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Will Healthy Y/Y Revenue Growth Boost Keysight's Q2 Earnings?
Key Takeaways
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to report second-quarter fiscal 2026 results on May 19, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 4.58%, on average.
Based in Santa Rosa, CA, the leading electronic design company is expected to report higher year-over-year revenues, backed by strength in both segments. Management’s focus on expanding its business through collaborations with established players in various sectors is a tailwind.
Factors at Play
During the quarter, Keysight introduced hands-on semiconductor teaching labs for universities. These labs provide practical training, helping students gain real-world skills in chip design, testing, and measurement to better prepare for careers in the semiconductor industry. It also launched SBOM Manager to help organizations comply with evolving global cybersecurity regulations. The solution improves software transparency, manages vulnerabilities, and strengthens security by providing better visibility into software components and supply chain risks.
The company expanded its Virtual Manufacturing portfolio by adding assembly simulation, enabling engineers to test and optimize manufacturing processes digitally, reduce errors, and improve efficiency before physical production begins. These developments are likely to have a positive impact on the company’s upcoming results.
In the quarter under review, Keysight formed a collaboration with Qualcomm to accelerate the development of Advanced 5G and 6G network capabilities. It is also collaborating with AttoTude to develop advanced signal analysis solutions for THz interconnects. The partnership aims to improve high-speed data transmission, enabling next-generation chip and communication technologies. Strategic collaboration with industry leaders to expand portfolio offerings and accelerate innovation is a positive factor.
For the second quarter of fiscal 2026, the Zacks Consensus Estimate for revenues is pegged at $1.72 billion, indicating year-over-year growth from $1.32 billion. The consensus estimate for adjusted earnings per share is pegged at $2.33, suggesting an improvement from the $1.7 per share reported a year ago.
The Zacks Consensus Estimate for revenues in the Commercial Solutions Group is pegged at $1.25 billion, indicating growth from $913 million a year ago. Revenues from Electronics Industrial Solutions are projected at $467.52 million, indicating growth from $393 million in the year-ago quarter.
Earnings Whispers
Our proven model predicts a likely earnings beat for Keysight in the fiscal second quarter. 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 exactly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.86%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Keysight Technologies Inc. Price and EPS Surprise
Keysight Technologies Inc. price-eps-surprise | Keysight Technologies Inc. Quote
Zacks Rank: Keysight has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Advance Auto Parts (AAP - Free Report) is set to release its first-quarter 2026 numbers on May 21. It has an Earnings ESP of +11.18% and carries a Zacks Rank #2 at present.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +0.24%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report first-quarter fiscal 2027 numbers on May 20.
The Earnings ESP for Lowe's Companies (LOW - Free Report) is +0.57%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report first-quarter 2026 numbers on May 20.