Keysight Technologies

Keysight posted its best quarter in company history with revenue of $1.72B (up 31% reported, 24% core) and record orders of $2.05B (up 56%), driven by broad strength across AI data center infrastructure, defense modernization, and semiconductor capacity investment. The AI-related business reached $500-$600M in the first half alone, matching all of FY2025, as concurrent demand vectors in infrastructure scaling, speed transitions, optical technologies, and system-level emulation accelerated. Operating leverage was strong at nearly 50% incrementals on a core basis, with ex-tariff operating margins expanding to 30.4%. Management raised FY2026 revenue growth expectations from just above 20% to the high-20s percent range, reflecting confidence in the second-half pipeline from defense systems orders, semiconductor programs, and continued AI infrastructure build-out.