Keysight Q3 FY26 revenue climbs 36.5% to $1.85 billion
Keysight closed FY2026 Q3 with revenue of $1.85 billion, up 36.5% from a year ago, a 65.9% gross margin and GAAP EPS of $2.30, and guided Q4 revenue to $1.93–$1.95 billion. Read this as a margin-and-orders story rather than a beat-versus-consensus story: the Q4 midpoint sits about 2.3% below the next-quarter analyst estimate of $1.98 billion, even as orders hit a second straight record above $2 billion.
1 · Expected vs. Actual
Free preview belowGAAP net income was $397 million, or $2.30 per diluted share, up from $191 million and $1.10 a year ago. Non-GAAP net income was $531 million, or $3.07 per share, versus $1.72 last year, so the gap between the two measures is $0.77. That gap is made of excluded items that are mostly real costs: $72 million of acquisition-related amortization, $47 million of share-based compensation and $28 million of acquisition and integration costs.
Revenue was $1.85 billion, up 36.5% from $1.35 billion a year ago, and gross margin expanded to 65.9% from 61.7%. That margin is still below last quarter's 68.6%, so the mix shifted even as the top line grew. Both segments contributed: Communications Solutions Group revenue of $1.35 billion rose 43.0%, and Electronic Industrial Solutions Group revenue of $501 million rose 21.0%.
Management guided fourth-quarter revenue to $1.93–$1.95 billion, a $1.94 billion midpoint that implies roughly 37% year-over-year growth, with non-GAAP EPS of $3.34–$3.40. The midpoint lands about 2.3% below the next-quarter revenue estimate of $1.98 billion. No GAAP EPS reconciliation was provided because the company says the tax items involved are not currently estimable.
Log in to read 5 analyses a week for free
Create a free account to read 5 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.