Earnings Call
May 19, 2026
Q2 FY2026
EPS Estimate
2.33
EPS Actual
2.58
Post-Earnings Close
$342.08
Earnings Reaction
-0.6%
Keysight Technologies posted what management described as the best quarter in company history, with Q2 FY2026 results that materially exceeded expectations across every headline metric. Orders surged 56% year over year to $2.05 billion, crossing the $2 billion threshold for the first time, while revenue rose 31% to $1.72 billion and EPS of $2.87 represented 69% growth. Free cash flow hit a record $472 million. These figures carry an important asterisk: a one-time tariff refund following the U.S. Supreme Court's IEBA decision reduced reported revenue by $40 million and reduced costs and expenses by $97 million in the quarter. Stripping out those items, revenue was $1.76 billion (up 35%), gross margin was 67.6% (up 300 basis points), and EPS was $2.58 (up 52%), still a standout result by any measure, and the basis on which management's forward commentary should be evaluated.
Report generated on May 19, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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