AI-extracted from the 10-Q filed 2026-09-02 — Q3 FY2026 (quarter ended July 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Keysight achieved Q3 revenue of $1.846B (+36% YoY) driven by strong demand for AI-infrastructure and 5G/6G solutions, with net income more than doubling to $397M on margin expansion and IEEPA tariff recoveries.
Biggest Revenue Drivers
Communications Solutions Group (CSG)$1,345M+43% YoY
Driven by commercial communications demand for terabit Ethernet solutions and AI data center expansion; aerospace/defense revenue grew 14%.
Electronic Industrial Solutions Group (EISG)$501M+21% YoY
Fueled by AI-driven semiconductor manufacturing capacity, software-defined vehicles, and autonomous driving applications.
Biggest Revenue Drivers
Total revenue: $1,846M+36% YoY
Communications Solutions Group (CSG)$1,345M+43% YoY
Driven by commercial communications demand for terabit Ethernet solutions and AI data center expansion; aerospace/defense revenue grew 14%.
Electronic Industrial Solutions Group (EISG)$501M+21% YoY
Fueled by AI-driven semiconductor manufacturing capacity, software-defined vehicles, and autonomous driving applications.
Largest Expense Items
Research and development$312M+25% YoY
Incremental costs from acquired businesses (Spirent, Synopsys OSG, PowerArtist), higher variable people costs, and continued investments in AI and next-generation technologies.
Selling, general and administrative$446M+26% YoY
Incremental acquired business costs, higher people-related expenses, increased amortization of acquisition intangibles, and selling/marketing infrastructure costs.
Cost of sales (total)$630M+22% YoY
Higher revenue volume and favorable product mix, partially offset by people costs and amortization of acquisition-related intangibles; net benefit from IEEPA tariff recoveries.
Margins: Gross margin expanded 4 percentage points YoY to 65.8%, driven by higher revenue volume, favorable product mix, incremental acquisition margins, and net IEEPA tariff refund benefits, partially offset by higher people costs and acquisition-related amortization. Operating margin jumped 8 percentage points to 24.9%, reflecting gross margin gains and operating leverage.
Watch Items from the Filing
Concentration in Communications Solutions Group at 73% of revenue; loss of major CSG customer or demand shift in 5G/6G could significantly impact topline.
Extended lead times and order backlog remain elevated; risk of order cancellations if customers' end-market demand declines or they obtain shorter-lead alternatives.
IEEPA tariff refund claims of $100M recorded in 9M FY2026, with $64M still outstanding as of July 31, 2026; uncertainty regarding timing and completeness of government refunds could affect cash flow.
Recent acquisitions (Spirent $1,415M, Synopsys OSG $580M, PowerArtist $26M) in October 2025 contributed 6-7 percentage points to revenue growth; integration risk and goodwill impairment exposure remain.
Ongoing Centripetal patent litigation across U.S., Germany, Europe; Federal Circuit affirmed USPTO invalidation of four challenged patents; remaining appeals ongoing but favorably trending for Keysight.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
6 transactions in KEYS reported by 6 members of Congress under the STOCK Act, most recent trade Apr 11, 2025. Reported transactions, not recommendations.
About Keysight Technologies, Inc. (KEYS): stock profile, AI score and financials
Keysight Technologies, Inc. (KEYS) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores KEYS at 72.2/100 on a composite quality score built from its SEC filings, placing it at rank #159 of 2,925 stocks — the top 10% of the AI-ranked universe. KEYS scores in the top quartile across balance sheet strength (87.6), profitability (83.0), revenue scale (81.6). Shareholder dilution risk is elevated at 31.7/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q3 2026), Keysight Technologies, Inc. reports quarterly revenue of $1.8B, net income of $397.0M, an operating margin of 25.0%. Top institutional holders of KEYS by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, PRICE T ROWE ASSOCIATES, based on the most recent SEC filings. KEYS trades on the NYSE exchange and files with the SEC under CIK 1601046. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate KEYS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Keysight Technologies, Inc. directly from SEC EDGAR.