KEYS Set to Report Q1 Results: Will Revenue Growth Boost Earnings?

Keysight Technologies, Inc. KEYS is scheduled to report first-quarter fiscal 2026 results on Feb. 23, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 4.24%, on average.

Based in Santa Rosa, CA, the leading electronic design company is expected to report higher year-over-year revenues, backed by strength in both segments. Management’s focus on expanding its business through collaborations with established players in various sectors is positive.

Factors at Play

In the to-be-reported quarter, Keysight introduced Quantum System Analysis, a leading-edge Electronic Design Automation solution that empowers engineers to simulate and optimize quantum systems by conducting system-level quantum analysis. It eliminates the issues with time-consuming and costly cryogenic experiments by offering a unified environment that integrates electromagnetic, circuit and quantum dynamics. It is a major breakthrough as it ensures early assessment of quantum system designs, reducing the development time.

Keysight also introduced a high-throughput in-line flash programming solution called Keysight A90 Application-Specific Automated Test Suite. The solution is engineered to streamline the management of large firmware payloads in high-volume production environments. This can be a game-changer for electronics manufacturers. Such innovative product launches are expected to have a favorable impact on the upcoming results.

During the quarter, Keysight and MediaTek partnered to advance pre-6G technology, focusing on integrated sensing and communication, aiming to enhance wireless performance, efficiency and innovation in next-generation network solutions.

Keysight completed the acquisition of Spirent Communications. Spirent boasts a robust portfolio that caters to satellite emulation, positioning, and network automation. The acquisition has diversified KEYS' product offerings, boosting its commercial prospects across several sectors, including communications, automotive, aerospace, defense and more. These developments are likely to have a positive impact on the company’s fiscal first-quarter results.

Overall Expectations

The Zacks Consensus Estimate for revenues from the Communications Solutions Group segment is pegged at $1.05 billion, suggesting an increase from $883 million a year ago. Revenues from the Electronic Industrial Solutions Group vertical are expected to be $482.39 million, indicating growth from $415 million.

For the first quarter of fiscal 2026, the Zacks Consensus Estimate for revenues is pegged at $1.54 billion, indicating year-over-year growth from $1.29 billion. The consensus estimate for adjusted earnings per share is pegged at $1.99, suggesting an improvement from $1.82 per share reported a year ago.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Keysight in the fiscal first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Keysight Technologies Inc. Price and EPS Surprise

Keysight Technologies Inc. price-eps-surprise | Keysight Technologies Inc. Quote

Zacks Rank: Keysight has a Zacks Rank #2.

Stocks to Consider

Credo Technology Group Holding Ltd. CRDO has an Earnings ESP of +3.54% and sports a Zacks Rank of 1 currently. The company is scheduled to report quarterly numbers on March 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

StoneCo STNE has an Earnings ESP of +5.52% and carries a Zacks Rank of 3 currently. The company is scheduled to report quarterly numbers on March 2. 

Helios Technologies Inc. HLIO has an Earnings ESP of +1.41% and carries a Zacks Rank of 2 currently. The company is scheduled to report quarterly numbers on March 2.

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This article originally published on Zacks Investment Research (zacks.com).

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