Keysight Technologies Q1 earnings report to be released, with AI and 6G technology as focal points

Keysight Technologies (KEYS) stock closed at $237.94 on February 12, 2026, up 1.25% for the day, with a total market capitalization of approximately $40.81 billion. Based on recent financial reports and industry developments, the following events are noteworthy.

Performance and Operating Conditions

The company expects to release its Q1 FY2026 results in late February 2026. According to the financial report and earnings call information released on November 24, 2025, management’s guidance for Q1 revenue is between $1.53 billion and $1.55 billion (approximately 10% year-over-year growth excluding acquisitions), with non-GAAP EPS guidance ranging from $1.95 to $2.01. If actual results surpass expectations, it could further strengthen market confidence in AI computing demand driving testing business growth.

Company Projects and M&A Progress

In 2025, Keysight completed acquisitions of companies such as Spirent, with integration expected within 12 to 18 months. The goal is to save $100 million and to have the M&A contribute approximately $375 million in revenue in FY2026. Investors should monitor whether integration efficiency meets expectations and whether regulatory restrictions (such as asset divestitures) impact synergies.

Business and Technology Development

Keysight continues to invest in AI data center simulation, 6G channel modeling, and other areas. Its “AI Data Center Builder” has gained industry recognition. As clients like Meta and Microsoft significantly increase their capital expenditures in 2026 (Meta guiding $115 billion to $135 billion), the company is poised to benefit from growth in high-speed optical modules and semiconductor testing demand. It is important to observe whether order trends reflect actual downstream AI infrastructure needs.

Funding and Capital Allocation

In November 2025, the company announced an additional $1.5 billion share repurchase plan, on top of approximately $375 million in buybacks during FY2025, indicating strong management confidence in cash flow. If future quarterly free cash flow (about $1.3 billion in FY2025) remains stable, share repurchases could be a factor supporting the stock price.

Current Operating Status

Management expects Q1 FY2026 to fully offset the impact of tariffs introduced in August 2025, with annual tariff costs likely to be contained at the lower end of $150 million to $175 million. If operating profit margins (currently around 26%) move toward the long-term target of 31%–32%, it could boost market sentiment.

Industry and Risk Analysis

The test and measurement industry is highly sensitive to customer capital expenditure cycles. Caution is warranted if macroeconomic conditions or tech industry investments slow down, potentially suppressing order growth. Additionally, the company needs to maintain technological differentiation in frontier areas such as 6G and quantum computing to stay ahead of competitors like Rohde & Schwarz.

In summary, Keysight’s short-term focus is on the realization of Q1 earnings, progress in M&A integration, and the translation of AI/6G demand; medium to long-term, it is important to monitor the balance between technological barriers and industry cycle fluctuations.

This content is based on publicly available information and does not constitute investment advice.