Keysight Technologies (KEYS) Q2 2026 Financial Results Summary
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Keysight Technologies (KEYS) Q2 2026 Financial Results Summary
Release Date: May 19, 2026
Keysight Technologies, Inc. (NYSE: KEYS) announced its financial results for the second fiscal quarter ended April 30, 2026, achieving record performance, with substantial growth across multiple metrics.
Key Financial Highlights
- Revenue:
- $1.72 billion, a 31% increase compared to $1.31 billion in Q2 2025.
- Net Income:
- GAAP net income was $349 million ($2.02 per share), up from $257 million ($1.49 per share) in Q2 2025.
- Non-GAAP net income reached $497 million ($2.87 per share), compared to $295 million ($1.70 per share) year-over-year.
- Cash Flow:
- Cash flow from operations stood at $501 million, slightly up from $484 million last year.
- Free cash flow amounted to $472 million, compared to $457 million in Q2 2025.
- Balance Sheet:
- As of April 30, 2026, cash, cash equivalents, and restricted cash totaled $2.43 billion.
Business Segments Performance
- Communications Solutions Group (CSG):
- Revenue of $1,231 million, marking a 35% growth compared to Q2 2025.
- Notable verticals:
- Commercial communications: Up 40%.
- Aerospace, defense, and government: Up 24%.
- Electronic Industrial Solutions Group (EISG):
- Revenue of $486 million, reflecting a 24% increase from the previous year.
- The segment demonstrated double-digit growth in automotive and energy markets, general electronics, and semiconductors.
IEEPA Tariff Refund Claim
- Recorded a receivable of $100 million as a result of the U.S. Supreme Court's ruling on tariffs, which impacted financials for the quarter:
- Cost of sales adjusted down by $93 million.
- Selling, general, and administrative expenses decreased by $4 million.
- Interest income reflected a $3 million increase.
Fiscal Year Outlook
- For the third fiscal quarter of 2026:
- Expected revenue between $1.730 billion and $1.750 billion, reflecting a year-over-year growth of approximately 29%.
- Anticipated non-GAAP earnings per share to range from $2.43 to $2.49.
Shareholder Actions
- Keysight Technologies did not declare a quarterly dividend during this period.
- The company repurchased shares, investing $310 million in treasury stock, compared to $228 million in the same period last year, indicating a 36% increase in repurchases.
Conclusion
Keysight Technologies has demonstrated strong performance with substantial year-over-year growth across its main financial metrics for Q2 2026. The company is maintaining a robust financial outlook, supported by increasing demand across its segments and strategic investments from previous years.
KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In millions, except per share data)
(Unaudited)
PRELIMINARY
Note: All amounts are in thousands.
| Three months ended | Six months ended | |||
|---|---|---|---|---|
| April 30, 2026 | 2025 | April 30, 2026 | 2025 | |
| Revenue | $ 2,051 | $ 1,316 | $ 3,696 | $ 2,579 |
| Costs and expenses: | ||||
| Cost of products and services | ||||
| Research and development | ||||
| Selling, general and administrative | ||||
| Other operating expense (income), net | ||||
| Total costs and expenses | ||||
| Income from operations | ||||
| Interest income | ||||
| Interest expense | ||||
| Other income (expense), net | ||||
| Income before taxes | ||||
| Provision (benefit) for income taxes | ||||
| Net income | ||||
| Net income per share: | ||||
| Basic | $ 2.04 | $ 1.49 | $ 3.68 | $ 2.47 |
| Diluted | $ 2.02 | $ 1.49 | $ 3.64 | $ 2.45 |
| Weighted average shares used in computing net income per share: | ||||
| Basic | 171 | 172 | 171 | 173 |
| Diluted | 173 | 173 | 173 | 174 |
KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET
(In millions, except par value and share data)
(Unaudited)
PRELIMINARY
Note: All amounts are in thousands.
| ASSETS | April 30, 2026 | October 31, 2025 |
|---|---|---|
| Cash and cash equivalents | $ 2,412 | $ 1,873 |
| Accounts receivable, net | 1,022 | 939 |
| Inventory | 1,038 | 1,050 |
| Other current assets | 570 | 486 |
| Total current assets | 5,042 | 4,348 |
| Property, plant and equipment, net | 741 | 795 |
| Operating lease right-of-use assets | 220 | 236 |
| Goodwill | 3,465 | 3,424 |
| Other intangible assets, net | 1,174 | 1,304 |
| Long-term investments | 169 | 211 |
| Long-term deferred tax assets | 335 | 373 |
| Other assets | 592 | 610 |
| Total assets | $ 11,738 | $ 11,301 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Current portion of long-term debt | $ 699 | $ — |
| Accounts payable | 392 | 355 |
| Employee compensation and benefits | 448 | 399 |
| Deferred revenue | 737 | 652 |
| Income and other taxes payable | 124 | 207 |
| Operating lease liabilities | 52 | 51 |
| Other accrued liabilities | 197 | 186 |
| Total current liabilities | 2,649 | 1,850 |
| Long-term debt | 1,832 | 2,534 |
| Retirement and post-retirement benefits | 76 | 75 |
| Long-term deferred revenue | 251 | 232 |
| Long-term operating lease liabilities | 176 | 193 |
| Other long-term liabilities | 423 | 536 |
| Total liabilities | 5,407 | 5,420 |
| Stockholders' equity: | ||
| Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding | — | — |
Common stock; $0.01 par value; 1 billion shares authorized;
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