Keysight forecasts quarterly profit above estimates on strong data center-led demand

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Keysight forecasts quarterly profit above estimates on strong data center-led demand

Reuters

Tue, February 24, 2026 at 6:44 AM GMT+9 1 min read

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Feb 23 (Reuters) - Electronic equipment maker Keysight Technologies forecast second-quarter profit ahead of Wall Street ‌estimates on Monday, sending its shares up more ‌than 15% in after-market trading.

Keysight, which offers electronic design, testing and ​simulation software, has benefited from sustained demand from data centers as they expand to support AI workloads.

The Santa Rosa, California-based company expects second-quarter revenue in the ‌range of $1.69 billion ⁠to $1.71 billion, ahead of analysts’ average estimate of $1.51 billion, according to data compiled by ⁠LSEG.

Adjusted earnings per share for the quarter are forecast at $2.27 to $2.33, compared with estimates of $1.91 per share.

However, the ​company said ​its outlook doesn’t include ​any potential impact from ‌the U.S. Supreme Court ruling that struck down President Donald Trump’s IEEPA-based tariffs on February 20, or subsequent actions by the U.S. administration.

Keysight also beat Wall Street revenue and profit estimates for the first ‌quarter ended January 31, helped by ​strong performance in its communications ​solutions unit.

The unit’s ​revenue rose 27% to $1.12 billion in ‌the quarter, driven by continued ​investments in AI-focused ​data center infrastructure, non-terrestrial network applications and defense modernization.

The company reported quarterly revenue of $1.6 billion, above ​estimates of $1.54 ‌billion.

First-quarter adjusted profit per share came in at $2.17, ​beating estimates of $2 per share.

(Reporting by Parth Chandna; ​Editing by Jonathan Ananda)

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