Keysight Technologies, Inc. specializes in providing advanced electronic design and testing solutions to a diverse array of global industries, spanning commercial communications, ...
Keysight Technologies, Inc. is an S&P 500 company headquartered in Santa Rosa, California, with a rich history tracing back to 1939 when Bill Hewlett and Dave Packard founded Hewlett-Packard. Spun off from Agilent Technologies in November 2014, Keysight has established itself as the world's premier innovation partner in electronic design ...Keysight Technologies, Inc. is an S&P 500 company headquartered in Santa Rosa, California, with a rich history tracing back to 1939 when Bill Hewlett and Dave Packard founded Hewlett-Packard. Spun off from Agilent Technologies in November 2014, Keysight has established itself as the world's premier innovation partner in electronic design and test. The company operates globally, with a presence across the Americas, Europe, and the Asia Pacific, employing approximately 16,800 people who serve nearly 32,000 customers. Keysight's business is divided into two main segments: the Communications Solutions Group (CSG) and the Electronic Industrial Solutions Group (EISG). CSG focuses on electronic design automation (EDA) software, RF and microwave testing systems, network testing for data centers and software-defined networking, and precision measurement instruments like oscilloscopes, signal generators, and optical analyzers. EISG provides design and verification tools for industrial applications, including digital multimeters, thermal imagers, power supplies, printed-circuit-board testers, and integrated circuit parametric testers. Additionally, Keysight offers comprehensive support services such as technical assistance, training, and consulting, and distributes its products through a direct sales force, distributors, and resellers. The company holds over 2,000 patents and is known for its innovative solutions that help customers optimize manufacturing test, yield, and operations. Financially, Keysight demonstrates strong performance with a gross profit margin of 63.7%, operating margin of 18.2%, and net margin of 17.2%, though its price-to-earnings ratio of approximately 56 indicates a premium valuation. The company reinvests heavily in research and development (R&D), with R&D expenses accounting for 18.6% of revenue, underscoring its commitment to innovation. Keysight's leadership, under CEO Satish Dhanasekaran since 2022, drives a culture of exploration and excellence, enabling engineers to bring world-changing technologies to life, from 5G and 6G communications to autonomous vehicles and advanced semiconductor manufacturing.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$5.4B
+8.0%
+7.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$846.0M
+37.8%
+13.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+62.1%
-1.3%
-4.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+17.6%
+5.4%
+5.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+15.7%
+27.6%
+5.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$1.3B
+42.7%
-14.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+23.8%
+32.1%
-20.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
50.6%
+27.1%
-4.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.35x
-21.2%
+6.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, ladies and gentlemen, and welcome to Keysight Technologies Fiscal Third Quarter 2026 Earnings Conference Call. My name is Hilary, and I will be your lead operator today. This call is being recorded today, Tuesday, August 18, 2026, at 1:30 p.m. Pacific Time. I would now like to hand the call over to Liz Morali, Vice President of Investor Relations. Please go ahead, Ms. Morali.
Liz Morali: Good afternoon, and thank you for joining us for Keysight's Third Quarter Earnings Conference Call for Fiscal Year 2026. Joining me on today's call are Satish Dhanasekaran, President and CEO; Neil Dougherty, Executive Vice President and CFO; Kailash Narayanan, President of the Communications Solutions Group; Jason Kary, President of the Electronic Industrial Solutions Group; and Steve Yoon, Senior Vice President of Global Sales. Following the prepared remarks from Satish and Neil, we will conduct a question-and-answer session. The press release and information to supplement today's discussion can be found on our Investor Relations website, investor.keysight.com. During today's discussion, we will make forward-looking statements about the financial performance of the company. Actual results may differ materially from those mentioned in these forward-looking statements as a result of risks and uncertainties. Information about these risks and uncertainties can be found in our most recent Forms 10-K and 10-Q filings with the SEC. We do not intend to update any forward-looking statements. In addition, we will refer to non-GAAP financial measures and reference core growth, which excludes the impact of acquisitions or divestitures completed within the last 12 months and currency movements. The most directly comparable GAAP financial metrics and reconciliations can be found on our Investor Relations website, and all comparisons are on a year-over-year basis, unless otherwise noted. I'll now turn the call over to Satish.
Satish Dhanasekaran: Thank you, Liz. Good afternoon, and thank you, everyone, for joining us on today's earnings call. Keysight delivered another outstanding quarter with record results and broad-based growth across our markets. The outperformance was driven by strong execution by the team and demand extending across Keysight's full suite of differentiated products and solutions. Orders grew 56%, revenue grew 36% and earnings per share grew 79% alongside robust free cash flow generation. Given this momentum, we're raising our outlook for Q4 and for the full fiscal year. Customers are investing to solve increasingly complex engineering challenges across our end markets, such as AI infrastructure, advanced semiconductors, defense modernization and next-generation communications. Our outperformance reflects the differentiation of Keysight's solutions strategy and the increasing value we bring to customers across their innovation life cycle. We remain focused on executing our strategy for long-term value creation, starting with …