Keysight Technologies Reports Record Third-Quarter AI-Driven Growth

Keysight Technologies reported record fiscal third-quarter results that exceeded Wall Street expectations for both revenue and earnings. The company achieved revenue of $1.85 billion and adjusted earnings per share of $3.07, supported by a 56% year-on-year increase in orders, which reached $2.09 billion.

Growth was driven primarily by demand for artificial intelligence infrastructure testing solutions. This shift in market demand led to wireline revenue surpassing wireless revenue for the first time in the company's history, a result of heavy investments in AI data centers. The company also reported a free cash flow of $403 million and an operating margin expansion of over 800 basis points.

Looking ahead, the company provided a fiscal fourth-quarter outlook that remains significantly above analyst forecasts. Keysight projects revenue between $1.93 billion and $1.95 billion, with adjusted earnings per share expected to fall between $3.34 and $3.40.