Keysight Technologies Reports Third Quarter 2026 Results
Second consecutive record quarter with orders over $2 billion; full-year outlook improved SANTA ROSA, Calif., August 18, 2026 - Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the third fiscal quarter ended July 31, 2026.
"Keysight’s record Q3 results and outlook reflect the growing relevance of our strategy and portfolio, which is enabling customers to solve complex engineering challenges across our end markets,” said Satish Dhanasekaran, Keysight’s President and CEO. “We remain confident in our ability to sustain our momentum and deliver long-term value creation.”
• Revenue was $1.85 billion, compared with $1.35 billion in the third quarter of 2025.
• GAAP net income was $397 million, or $2.30 per share, compared with $191 million, or $1.10 per share, in the third quarter of 2025.
• Non-GAAP net income was $531 million, or $3.07 per share, compared with $297 million, or $1.72 per share in the third quarter of 2025.
• Cash flow from operations was $437 million, compared to $322 million last year. Free cash flow was $403 million, compared to $291 million in the third quarter of 2025.
• As of July 31, 2026, cash, cash equivalents, and restricted cash totaled $2.62 billion.
CSG reported revenue of $1,345 million in the third quarter, up 43 percent from the prior year, reflecting 56 percent growth in commercial communications and 14 percent growth in aerospace, defense, and government.
EISG reported revenue of $501 million in the third quarter, up 21 percent from the prior year, reflecting growth across the semiconductor, general electronics and automotive and energy markets.
Keysight’s fourth fiscal quarter of 2026 revenue is expected to be in the range of $1.930 billion to $1.950 billion. The mid-point of the revenue range represents year-over-year growth of approximately 37%. Non-GAAP earnings per share for the fourth fiscal quarter of 2026 are expected to be in the range of $3.34 to $3.40, based on a weighted diluted share count of approximately 172 million shares. Certain items impacting the GAAP tax rate pertain to future events and are not currently estimable with a reasonable degree of accuracy; therefore, no reconciliation of GAAP earnings per share to non-GAAP has been provided. Further information is discussed in the section titled “Use of Non- GAAP Financial Measures” below.
Keysight’s management will present more details about its third quarter FY2026 financial results and its fourth quarter FY2026 outlook on a conference call with investors today at 1:30 p.m. PT. This event will be webcast in listen-only mode. Listeners may log on to the call at www.investor.keysight.com under the “Upcoming Events” section and select “Q3 FY26 Keysight Technologies Inc. Earnings Conference Call” to participate. The call can also be accessed by dialing 1-585-542-9983 or 1-833-461-5787 toll-free (meeting ID 521 932 188). The webcast will remain on the company site for 90 days. 1
This communication contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The words “assume,” “expect,” “intend,” “will,” “should,” “outlook” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could significantly affect the expected results and are based on certain key assumptions of Keysight’s management and on currently available information. Due to such uncertainties and risks, no assurances can be given that such expectations or assumptions will prove to have been correct, and readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Keysight undertakes no responsibility to publicly update or revise any forward-looking statement. The forward-looking statements contained herein include, but are not limited to, predictions, future guidance, projections, beliefs, and expectations about the company’s goals, revenues, financial condition, earnings, and operations that involve risks and uncertainties that could cause Keysight’s results to differ materially from management’s current expectations. Such risks and uncertainties include, but are not limited to, impacts of global economic conditions such as inflation or recession, slowing demand for products or services, volatility in financial markets, reduced access to credit, increased interest rates, impacts of geopolitical tension and conflict outside of the U.S., export control regulations and compliance, net zero emissions commitments, customer purchasing decisions and timing, tariff and trade policy impacts and order cancellations.
In addition to the risks above, other risks that Keysight faces include those detailed in Keysight’s filings with the Securities and Exchange Commission on Keysight’s annual report on Form 10-K for the period ended October 31, 2025 and Keysight’s quarterly report on Form 10-Q for the period ended April 30, 2026 .
Segment data reflect the results of our reportable segments under our management reporting system. Segment data are provided on page 5 of the attached tables.
In addition to financial information prepared in accordance with U.S. GAAP (“GAAP”), this document also contains certain non-GAAP financial measures based on management’s view of performance, including:
Net Income per share is based on weighted average diluted share count. See the attached supplemental schedules for reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure for the three and nine months ended July 31, 2026. Following the reconciliations is a discussion of the items adjusted from our non-GAAP financial measures and the company’s reasons for including or excluding certain categories of income or expenses from our non-GAAP results.
Keysight (NYSE: KEYS) serves technology innovators as a mission-critical design enablement partner for the world's most complex engineering challenges. By connecting market-leading design, emulation, and test solutions across the full lifecycle, Keysight helps engineering teams accelerate innovation, reduce risk, and bring new technologies to market faster. Customers across AI infrastructure, communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics rely on Keysight to bridge virtual design and physical reality, enabling confident decisions earlier. Learn more at www.keysight.com . # # #
KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In millions, except par value and share data) (Unaudited) PRELIMINARY ASSETS Current assets: July 31, 2026 October 31, 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 2,605 $ 1,873 equivalents Accounts receivable, 1,067 939 net Inventory 1,047 1,050 Other current assets 567 486 Total current assets 5,286 4,348 Property, plant and 735 795 equipment, net Operating lease 221 236 right-of-use assets Goodwill 3,462 3,424 Other intangible 1,113 1,304 assets, net Long-term investments 188 211 Long-term deferred tax 327 373 assets Other assets 589 610 Total assets $ 11,921 $ 11,301 LIABILITIES AND EQUITY Current liabilities: Current portion of $ 700 $ — long-term debt Accounts payable 424 355 Employee compensation 379 399 and benefits Deferred revenue 707 652 Income and other taxes 163 207 payable Operating lease 53 51 liabilities Other accrued 186 186 liabilities Total current 2,612 1,850 liabilities Long-term debt 1,817 2,534 Retirement and post-retirement 76 75 benefits Long-term deferred 250 232 revenue Long-term operating 176 193 lease liabilities Other long-term 419 536 liabilities Total liabilities 5,350 5,420 Stockholders' equity: Preferred stock; $0.01 par value; 100 million shares — — authorized; none issued and outstanding Common stock; $0.01 par value; 1 billion shares authorized; 203 2 2 million and 202 million shares issued, respectively Treasury stock, at cost; 32.7 million shares and 30.8 million -4,319 -3,799 shares, respectively Additional 3,058 2,851 paid-in-capital Retained earnings 8,102 7,075 Accumulated other -272 -248 comprehensive loss Total stockholders' 6,571 5,881 equity Total liabilities and $ 11,921 $ 11,301 equity
KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In millions) (Unaudited) PRELIMINARY Nine months ended Cash flows from operating July 31, activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 1,027 $ 617 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 116 97 Amortization 202 104 Share-based compensation 181 129 Deferred tax expense (benefit) -28 -58 Excess and obsolete inventory-related 29 30 charges Gain on sale of investments -6 — Unrealized loss (gain) on 38 -39 investments Other non-cash expenses (income), 13 5 net Changes in assets and liabilities, net of effects of businesses acquired:
Accounts receivable -138 173 Inventory -26 -21 Accounts payable 72 29 Employee compensation and -20 -8 benefits Deferred revenue 64 -12 Income taxes payable -63 42 Other assets and liabilities -82 96 Net cash provided by operating 1,379 1,184 activities(a) Cash flows from investing activities: Investments in property, plant and -97 -90 equipment Acquisitions of businesses and intangible assets, net of cash -33 -3 acquired Purchase of investments -27 -4 Proceeds from sale of investments 22 — Net cash used in investing -135 -97 activities Cash flows from financing activities: Proceeds from issuance of common stock 68 63 under employee stock plans Payment of taxes related to net share -41 -38 settlement of equity awards Treasury stock repurchases, including -520 -278 excise tax payments Proceeds from issuance of — 748 long-term debt Payment of acquisition-related -21 — consideration Debt issuance costs -1 -8 Net cash provided by (used in) financing -515 487 activities Effect of exchange rate movements 3 9 Net increase in cash, cash equivalents, 732 1,583 and restricted cash Cash, cash equivalents, and restricted 1,890 1,814 cash at beginning of period Cash, cash equivalents, and restricted $ 2,622 $ 3,397 cash at end of period
(a) For both the three and nine months ended July 31, 2026 and 2025, management used a non-GAAP effective tax rate of 14%.
Please refer to the last page for details on the use of non-GAAP financial measures. 4
KEYSIGHT TECHNOLOGIES, INC. SEGMENT RESULTS INFORMATION (In millions, except where noted) (Unaudited) PRELIMINARY Communications Solutions Percent Group Q3'26 Q3'25 Inc/(Dec) ────────────────────────────────────────────────────────────────────────────── Revenue $ 1,345 $ 940 43% Gross margin, % 71 % 67 % Income from operations $ 458 $ 246 Operating margin, % 34 % 26 % Electronic Industrial Percent Solutions Group Q3'26 Q3'25 Inc/(Dec) Revenue $ 501 $ 412 21% Gross margin, % 64 % 57 % Income from operations $ 155 $ 92 Operating margin, % 31 % 22 %
Segment revenue and income from operations are consistent with the respective non-GAAP financial measures as discussed on last page. 5
KEYSIGHT TECHNOLO… INC. FREE CASH FLOW (In millions) (Unaudit… PRELIMIN… Three Nine months months ended ended July 31, July 31, 2026 2025 2026 2025 Net cash provided by $ 437 $ 322 $ 1,379 $ 1,184 operating activiti… Adjustme… Investme… in property, -34 -31 -97 -90 plant and equipment Free cash $ 403 $ 291 $ 1,282 $ 1,094 flow
Please refer to the last page for details on the use of non-GAAP financial measures. 6
Our financial results are prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). To provide investors with additional insight, management uses both GAAP and non-GAAP financial measures to analyze and assess the overall performance of the business, to make operating decisions and to forecast and plan for future periods. We believe that our investors benefit from seeing our results “through the eyes of management” in addition to seeing our GAAP results. This information enhances investors’ understanding of the continuing performance of our business and facilitates comparison of performance to our historical and future periods. .
Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, including industry peer companies, limiting the usefulness of these measures for comparative purposes.
These non-GAAP measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The discussion below presents information about each of the non-GAAP financial measures and the company’s reasons for including or excluding certain categories of income or expenses from our non-GAAP results. In future periods, we may exclude such items and may incur income and expenses similar to these excluded items. Accordingly, adjustments for these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual.
• Acquisition-related items: We exclude the impact of certain items recorded in connection with business combinations from our non-GAAP financial measures that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts and lack of predictability as to occurrence or timing. These amounts may include non-cash items such as the amortization of acquired intangible assets and amortization of items associated with fair value purchase accounting adjustments. We also exclude other acquisition and integration costs associated with business acquisitions that are not normal recurring operating expenses, including gains/losses on foreign exchange contracts and legal, accounting and due diligence costs. While we have a history of acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and the related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition.
• Share-based compensation expense: We exclude share-based compensation expense from our non-GAAP financial measures as it is primarily a non-cash charge and can vary significantly from period to period based on the company’s share price, as well as the timing, size and nature of equity awards granted. Share-based compensation expenses will recur in future periods. Management believes the exclusion of this expense facilitates the ability of investors to compare the company’s operating results with those of other companies, many of which also exclude share-based compensation expense in determining their non-GAAP financial measures.
• Restructuring and others: We exclude incremental expenses associated with restructuring initiatives, including those of acquired entities, that are usually aimed at material changes in the business or cost structure. Such costs may include employee separation costs, facility-related costs, contract termination fees, and costs to move operations from one location to another. These activities can vary significantly from period to period based on the timing, size and nature of restructuring plans; therefore, we do not consider such costs to be normal, recurring operating expenses.
We also exclude “others,” not normal, recurring, cash operating income/expenses from our non-GAAP financial measures. Such items are evaluated on an individual basis, based on both quantitative and qualitative factors and generally represent items that we do not anticipate occurring as part of our normal business. While not all-inclusive, examples of such items would include significant non-recurring events like realized gains or losses associated with our employee benefit plans, asset impairments, costs and recoveries related to unusual events, gains/losses on sale of assets/divestitures, adjustment attributable to non-controlling interest, etc. We believe that these costs do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of the company’s current operating performance or comparisons to our operating performance in other periods.
• Net gains/losses on investments: We also exclude net gains and losses on investments, which primarily represent profits or losses recognized from changes in the fair value and/or sale of securities. Such fluctuations are driven by market conditions and factors beyond our control and are not indicative of the Company’s core operating results.
• Estimated tax rate: We utilize a consistent methodology for long-term projected non-GAAP tax rate. When projecting this long-term rate, we exclude any tax benefits or expenses that are not directly related to ongoing operations and which are either isolated or cannot be expected to occur again with any regularity or predictability. Additionally, we evaluate our current long-term projections, current tax structure and other factors, such as existing tax positions in various jurisdictions and key tax holidays in major jurisdictions where Keysight operates. This tax rate could change in the future for a variety of reasons, including but not limited to significant changes in geographic earnings mix including acquisition activity, or fundamental tax law changes in major jurisdictions where Keysight operates. The above reasons also limit our ability to reasonably estimate the future GAAP tax rate and provide a reconciliation of the expected non-GAAP earnings per share for the fourth quarter of fiscal 2026 to the GAAP equivalent.
Management recognizes that these items can have a material impact on our cash flows and/or our net income. Our GAAP financial statements, including our Condensed Consolidated Statement of Cash Flows, portray those effects. Although we believe it is useful for investors to see core performance free of special items, investors should understand that the excluded costs are actual expenses that may impact the cash available to us for other uses. To gain a complete picture of all effects on the company’s profit and loss from any and all events, management does (and investors should) rely upon the Condensed Consolidated Statement of Operations prepared in accordance with GAAP. The non-GAAP measures focus instead upon the core business of the company, which is only a subset, albeit a critical one, of the company’s performance.
Core Revenue/Margin excludes the impact of a) foreign currency changes and b) revenue/expenses associated with acquisitions or divestitures completed within the last twelve months. We exclude from the current period the impact of foreign currency changes as currency rates can fluctuate based on factors outside our control and may obscure underlying growth trends. To determine this impact, current period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the actual exchange rates in effect during the respective prior periods. Given the nature, size and number of acquisitions can vary significantly from period to period and as compared to our peers, we also exclude revenue/expenses associated with recently acquired businesses to facilitate comparisons of growth and analysis of underlying business trends.
Free cash flow includes cash provided by operating activities calculated according to GAAP less net investments in property, plant and equipment. Management believes free cash flow provides useful supplemental information regarding the company's ability to generate cash after investments required to support ongoing business operations and facilitates an evaluation of the company's liquidity, financial flexibility, and capital allocation priorities.
Percentages and period-over-period changes are calculated using underlying unrounded values and may not precisely reconcile to the rounded figures presented. 8
Full text with the tables
Exhibit 99.1
Keysight Technologies Reports Third Quarter 2026 Results
Second consecutive record quarter with orders over $2 billion; full-year outlook
improved
SANTA ROSA, Calif., August 18, 2026 - Keysight Technologies, Inc. (NYSE: KEYS)
today reported financial results for the third fiscal quarter ended July 31,
2026.
"Keysight’s record Q3 results and outlook reflect the growing relevance of our
strategy and portfolio, which is enabling customers to solve complex engineering
challenges across our end markets,” said Satish Dhanasekaran, Keysight’s
President and CEO. “We remain confident in our ability to sustain our momentum
and deliver long-term value creation.”
Third Quarter Financial Summary
• Revenue was $1.85 billion, compared with $1.35 billion in the third quarter of
2025.
• GAAP net income was $397 million, or $2.30 per share, compared with $191
million, or $1.10 per share, in the third quarter of 2025.
• Non-GAAP net income was $531 million, or $3.07 per share, compared with $297
million, or $1.72 per share in the third quarter of 2025.
• Cash flow from operations was $437 million, compared to $322 million last
year. Free cash flow was $403 million, compared to $291 million in the third
quarter of 2025.
• As of July 31, 2026, cash, cash equivalents, and restricted cash totaled $2.62
billion.
Reporting Segments
• Communications Solutions Group (CSG)
CSG reported revenue of $1,345 million in the third quarter, up 43 percent from
the prior year, reflecting 56 percent growth in commercial communications and 14
percent growth in aerospace, defense, and government.
• Electronic Industrial Solutions Group (EISG)
EISG reported revenue of $501 million in the third quarter, up 21 percent from
the prior year, reflecting growth across the semiconductor, general electronics
and automotive and energy markets.
Outlook
Keysight’s fourth fiscal quarter of 2026 revenue is expected to be in the range
of $1.930 billion to $1.950 billion. The mid-point of the revenue range
represents year-over-year growth of approximately 37%. Non-GAAP earnings per
share for the fourth fiscal quarter of 2026 are expected to be in the range of
$3.34 to $3.40, based on a weighted diluted share count of approximately 172
million shares. Certain items impacting the GAAP tax rate pertain to future
events and are not currently estimable with a reasonable degree of accuracy;
therefore, no reconciliation of GAAP earnings per share to non-GAAP has been
provided. Further information is discussed in the section titled “Use of Non-
GAAP Financial Measures” below.
Webcast
Keysight’s management will present more details about its third quarter FY2026
financial results and its fourth quarter FY2026 outlook on a conference call
with investors today at 1:30 p.m. PT. This event will be webcast in listen-only
mode. Listeners may log on to the call at www.investor.keysight.com under the
“Upcoming Events” section and select “Q3 FY26 Keysight Technologies Inc.
Earnings Conference Call” to participate. The call can also be accessed by
dialing 1-585-542-9983 or 1-833-461-5787 toll-free (meeting ID 521 932 188). The
webcast will remain on the company site for 90 days.
1
Forward-Looking Statements
This communication contains forward-looking statements as defined in the
Securities Exchange Act of 1934 and is subject to the safe harbors created
therein. The words “assume,” “expect,” “intend,” “will,” “should,” “outlook” and
similar expressions, as they relate to the company, are intended to identify
forward-looking statements. These forward-looking statements involve risks and
uncertainties that could significantly affect the expected results and are based
on certain key assumptions of Keysight’s management and on currently available
information. Due to such uncertainties and risks, no assurances can be given
that such expectations or assumptions will prove to have been correct, and
readers are cautioned not to place undue reliance on such forward-looking
statements, which speak only as of the date hereof. Keysight undertakes no
responsibility to publicly update or revise any forward-looking statement. The
forward-looking statements contained herein include, but are not limited to,
predictions, future guidance, projections, beliefs, and expectations about the
company’s goals, revenues, financial condition, earnings, and operations that
involve risks and uncertainties that could cause Keysight’s results to differ
materially from management’s current expectations. Such risks and uncertainties
include, but are not limited to, impacts of global economic conditions such as
inflation or recession, slowing demand for products or services, volatility in
financial markets, reduced access to credit, increased interest rates, impacts
of geopolitical tension and conflict outside of the U.S., export control
regulations and compliance, net zero emissions commitments, customer purchasing
decisions and timing, tariff and trade policy impacts and order cancellations.
In addition to the risks above, other risks that Keysight faces include those
detailed in Keysight’s filings with the Securities and Exchange Commission on
Keysight’s annual report on Form 10-K for the period ended October 31, 2025 and
Keysight’s quarterly report on Form 10-Q for the period ended April 30, 2026 .
Segment Data
Segment data reflect the results of our reportable segments under our management
reporting system. Segment data are provided on page 5 of the attached tables.
Use of Non-GAAP Financial Measures
In addition to financial information prepared in accordance with U.S. GAAP
(“GAAP”), this document also contains certain non-GAAP financial measures based
on management’s view of performance, including:
• Non-GAAP Net Income/Earnings
• Non-GAAP Net Income per share/Earnings per share
• Free Cash Flow
Net Income per share is based on weighted average diluted share count. See the
attached supplemental schedules for reconciliations of each non-GAAP financial
measure to its most directly comparable GAAP financial measure for the three and
nine months ended July 31, 2026. Following the reconciliations is a discussion
of the items adjusted from our non-GAAP financial measures and the company’s
reasons for including or excluding certain categories of income or expenses from
our non-GAAP results.
About Keysight Technologies
Keysight (NYSE: KEYS) serves technology innovators as a mission-critical design
enablement partner for the world's most complex engineering challenges. By
connecting market-leading design, emulation, and test solutions across the full
lifecycle, Keysight helps engineering teams accelerate innovation, reduce risk,
and bring new technologies to market faster. Customers across AI infrastructure,
communications, industrial automation, aerospace and defense, automotive,
semiconductor, and general electronics rely on Keysight to bridge virtual design
and physical reality, enabling confident decisions earlier. Learn more at
www.keysight.com .
# # #
2
INVESTOR CONTACT :
Liz Morali
+1 707 577 2880
liz.morali@keysight.com
MEDIA CONTACT :
Mark Price
+44 1803 546317
mark.price@keysight.com
Source: IR-KEYS
3
KEYSIG…
TECHNO…
INC.
CONDEN…
CONSOL…
STATEM…
OF
OPERAT…
(In
millio…
except
per
share
data)
(Unaud…
PRELIM…
Orders
Revenue
Costs
and
expens…
Cost of
produc…
and
servic…
Resear…
and
develo…
Sellin…
general
and
admini…
Other
operat…
expense
(incom…
net
Total
costs
and
expens…
Income
from
operat…
Intere…
income
Intere…
expense
Other
income
(expen…
net 2,091 1,340 5,787 3,919
Income 1,846 1,352 5,163 3,956
before 630 518 1,774 1,488
taxes 312 250 935 749
Provis… 446 354 1,349 1,075
for (3) (4) (11) (15)
income 1,385 1,118 4,047 3,297
taxes 461 234 1,116 659
Net 20 31 54 71
income Three (26) (28) Nine (80) (68)
Net months 22 4 months 3 98
income ended 477 241 ended 1,093 760
per July 31, 80 50 July 31, 66 143
share: 2026 397 2025 191 2026 1,027 2025 617
──────────────────────────────────────────────────────────────────────────────
Basic $ 2.33 $ 1.11 $ 6.00 $ 3.58
Diluted $ 2.30 $ 1.10 $ 5.93 $ 3.56
Weight…
average
shares
used in
comput…
net
income
per
share:
Basic 171 172 171 172
Diluted 173 173 173 173
1
KEYSIGHT TECHNOLOGIES,
INC.
CONDENSED CONSOLIDATED
BALANCE SHEET
(In millions, except
par value and share
data)
(Unaudited)
PRELIMINARY
ASSETS
Current assets: July 31, 2026 October 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 2,605 $ 1,873
equivalents
Accounts receivable, 1,067 939
net
Inventory 1,047 1,050
Other current assets 567 486
Total current assets 5,286 4,348
Property, plant and 735 795
equipment, net
Operating lease 221 236
right-of-use assets
Goodwill 3,462 3,424
Other intangible 1,113 1,304
assets, net
Long-term investments 188 211
Long-term deferred tax 327 373
assets
Other assets 589 610
Total assets $ 11,921 $ 11,301
LIABILITIES AND EQUITY
Current liabilities:
Current portion of $ 700 $ —
long-term debt
Accounts payable 424 355
Employee compensation 379 399
and benefits
Deferred revenue 707 652
Income and other taxes 163 207
payable
Operating lease 53 51
liabilities
Other accrued 186 186
liabilities
Total current 2,612 1,850
liabilities
Long-term debt 1,817 2,534
Retirement and
post-retirement 76 75
benefits
Long-term deferred 250 232
revenue
Long-term operating 176 193
lease liabilities
Other long-term 419 536
liabilities
Total liabilities 5,350 5,420
Stockholders' equity:
Preferred stock; $0.01
par value; 100
million shares — —
authorized; none issued
and outstanding
Common stock; $0.01 par
value; 1 billion
shares authorized; 203 2 2
million and 202
million shares issued,
respectively
Treasury stock, at
cost; 32.7 million
shares and 30.8 million -4,319 -3,799
shares,
respectively
Additional 3,058 2,851
paid-in-capital
Retained earnings 8,102 7,075
Accumulated other -272 -248
comprehensive loss
Total stockholders' 6,571 5,881
equity
Total liabilities and $ 11,921 $ 11,301
equity
2
KEYSIGHT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS
(In millions)
(Unaudited)
PRELIMINARY Nine months ended
Cash flows from operating July 31,
activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 1,027 $ 617
Adjustments to reconcile net
income to
net cash provided by operating
activities:
Depreciation 116 97
Amortization 202 104
Share-based compensation 181 129
Deferred tax expense (benefit) -28 -58
Excess and obsolete
inventory-related 29 30
charges
Gain on sale of investments -6 —
Unrealized loss (gain) on 38 -39
investments
Other non-cash expenses (income), 13 5
net
Changes in assets and
liabilities, net
of effects of businesses
acquired:
Accounts receivable -138 173
Inventory -26 -21
Accounts payable 72 29
Employee compensation and -20 -8
benefits
Deferred revenue 64 -12
Income taxes payable -63 42
Other assets and liabilities -82 96
Net cash provided by operating 1,379 1,184
activities(a)
Cash flows from investing
activities:
Investments in property, plant
and -97 -90
equipment
Acquisitions of businesses and
intangible assets, net of cash -33 -3
acquired
Purchase of investments -27 -4
Proceeds from sale of investments 22 —
Net cash used in investing -135 -97
activities
Cash flows from financing
activities:
Proceeds from issuance of common
stock 68 63
under employee stock plans
Payment of taxes related to net
share -41 -38
settlement of equity awards
Treasury stock repurchases,
including -520 -278
excise tax payments
Proceeds from issuance of — 748
long-term debt
Payment of acquisition-related -21 —
consideration
Debt issuance costs -1 -8
Net cash provided by (used in)
financing -515 487
activities
Effect of exchange rate movements 3 9
Net increase in cash, cash
equivalents, 732 1,583
and restricted cash
Cash, cash equivalents, and
restricted 1,890 1,814
cash at beginning of period
Cash, cash equivalents, and
restricted $ 2,622 $ 3,397
cash at end of period
(a) Cash payments included in operating activities:
Interest payments $ 90 $ 39
Income tax paid, net $ 127 $ 74
3
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…
(a) For both the three and nine months ended July 31, 2026 and 2025, management
used a non-GAAP effective tax rate of 14%.
Please refer to the last page for details on the use of non-GAAP financial
measures.
4
KEYSIGHT TECHNOLOGIES, INC.
SEGMENT RESULTS INFORMATION
(In millions, except where
noted)
(Unaudited)
PRELIMINARY
Communications Solutions Percent
Group Q3'26 Q3'25 Inc/(Dec)
──────────────────────────────────────────────────────────────────────────────
Revenue $ 1,345 $ 940 43%
Gross margin, % 71 % 67 %
Income from operations $ 458 $ 246
Operating margin, % 34 % 26 %
Electronic Industrial Percent
Solutions Group
Q3'26 Q3'25 Inc/(Dec)
Revenue $ 501 $ 412 21%
Gross margin, % 64 % 57 %
Income from operations $ 155 $ 92
Operating margin, % 31 % 22 %
Segment revenue and income from operations are consistent with the respective
non-GAAP financial measures as discussed on last page.
5
KEYSIGHT
TECHNOLO…
INC.
FREE CASH
FLOW
(In
millions)
(Unaudit…
PRELIMIN…
Three Nine
months months
ended ended
July 31, July 31,
2026 2025 2026 2025
Net cash
provided
by $ 437 $ 322 $ 1,379 $ 1,184
operating
activiti…
Adjustme…
Investme…
in
property, -34 -31 -97 -90
plant and
equipment
Free cash $ 403 $ 291 $ 1,282 $ 1,094
flow
Please refer to the last page for details on the use of non-GAAP financial
measures.
6
KEYSIGHT TECHNOLOGIES, INC.
REVENUE BY END MARKETS
(In millions)
(Unaudited) Percent
PRELIMINARY Q3'26 Q3'25 Inc/(Dec)
──────────────────────────────────────────────────────────────────────────────
Aerospace, Defense and $ 339 $ 296 14%
Government
Commercial Communications 1,006 644 56%
Electronic Industrial 501 412 21%
Total Revenue $ 1,846 $ 1,352 36%
7
KEYSIGHT TECHNOLOGIES, INC.
Non-GAAP Financial Measures
Our financial results are prepared in accordance with generally accepted
accounting principles in the U.S. (“GAAP”). To provide investors with additional
insight, management uses both GAAP and non-GAAP financial measures to analyze
and assess the overall performance of the business, to make operating decisions
and to forecast and plan for future periods. We believe that our investors
benefit from seeing our results “through the eyes of management” in addition to
seeing our GAAP results. This information enhances investors’ understanding of
the continuing performance of our business and facilitates comparison of
performance to our historical and future periods. .
Our non-GAAP financial measures may not be comparable to similarly titled
measures used by other companies, including industry peer companies, limiting
the usefulness of these measures for comparative purposes.
These non-GAAP measures should be considered supplemental to and not a
substitute for financial information prepared in accordance with GAAP. The
discussion below presents information about each of the non-GAAP financial
measures and the company’s reasons for including or excluding certain categories
of income or expenses from our non-GAAP results. In future periods, we may
exclude such items and may incur income and expenses similar to these excluded
items. Accordingly, adjustments for these items and other similar items in our
non-GAAP presentation should not be interpreted as implying that these items are
non-recurring, infrequent or unusual.
The following items are excluded from our non-GAAP financial measures:
• Acquisition-related items: We exclude the impact of certain items recorded in
connection with business combinations from our non-GAAP financial measures that
are either non-cash or not normal, recurring operating expenses due to their
nature, variability of amounts and lack of predictability as to occurrence or
timing. These amounts may include non-cash items such as the amortization of
acquired intangible assets and amortization of items associated with fair value
purchase accounting adjustments. We also exclude other acquisition and
integration costs associated with business acquisitions that are not normal
recurring operating expenses, including gains/losses on foreign exchange
contracts and legal, accounting and due diligence costs. While we have a history
of acquisition activity, we do not acquire businesses on a predictable cycle,
and the amount of an acquisition’s purchase price allocated to intangible assets
and the related amortization term are unique to each acquisition and can vary
significantly from acquisition to acquisition.
• Share-based compensation expense: We exclude share-based compensation expense
from our non-GAAP financial measures as it is primarily a non-cash charge and
can vary significantly from period to period based on the company’s share price,
as well as the timing, size and nature of equity awards granted. Share-based
compensation expenses will recur in future periods. Management believes the
exclusion of this expense facilitates the ability of investors to compare the
company’s operating results with those of other companies, many of which also
exclude share-based compensation expense in determining their non-GAAP financial
measures.
• Restructuring and others: We exclude incremental expenses associated with
restructuring initiatives, including those of acquired entities, that are
usually aimed at material changes in the business or cost structure. Such costs
may include employee separation costs, facility-related costs, contract
termination fees, and costs to move operations from one location to another.
These activities can vary significantly from period to period based on the
timing, size and nature of restructuring plans; therefore, we do not consider
such costs to be normal, recurring operating expenses.
We also exclude “others,” not normal, recurring, cash operating income/expenses
from our non-GAAP financial measures. Such items are evaluated on an individual
basis, based on both quantitative and qualitative factors and generally
represent items that we do not anticipate occurring as part of our normal
business. While not all-inclusive, examples of such items would include
significant non-recurring events like realized gains or losses associated with
our employee benefit plans, asset impairments, costs and recoveries related to
unusual events, gains/losses on sale of assets/divestitures, adjustment
attributable to non-controlling interest, etc. We believe that these costs do
not reflect expected future operating expenses and do not contribute to a
meaningful evaluation of the company’s current operating performance or
comparisons to our operating performance in other periods.
• Net gains/losses on investments: We also exclude net gains and losses on
investments, which primarily represent profits or losses recognized from changes
in the fair value and/or sale of securities. Such fluctuations are driven by
market conditions and factors beyond our control and are not indicative of the
Company’s core operating results.
• Estimated tax rate: We utilize a consistent methodology for long-term
projected non-GAAP tax rate. When projecting this long-term rate, we exclude any
tax benefits or expenses that are not directly related to ongoing operations and
which are either isolated or cannot be expected to occur again with any
regularity or predictability. Additionally, we evaluate our current long-term
projections, current tax structure and other factors, such as existing tax
positions in various jurisdictions and key tax holidays in major jurisdictions
where Keysight operates. This tax rate could change in the future for a variety
of reasons, including but not limited to significant changes in geographic
earnings mix including acquisition activity, or fundamental tax law changes in
major jurisdictions where Keysight operates. The above reasons also limit our
ability to reasonably estimate the future GAAP tax rate and provide a
reconciliation of the expected non-GAAP earnings per share for the fourth
quarter of fiscal 2026 to the GAAP equivalent.
Management recognizes that these items can have a material impact on our cash
flows and/or our net income. Our GAAP financial statements, including our
Condensed Consolidated Statement of Cash Flows, portray those effects. Although
we believe it is useful for investors to see core performance free of special
items, investors should understand that the excluded costs are actual expenses
that may impact the cash available to us for other uses. To gain a complete
picture of all effects on the company’s profit and loss from any and all events,
management does (and investors should) rely upon the Condensed Consolidated
Statement of Operations prepared in accordance with GAAP. The non-GAAP measures
focus instead upon the core business of the company, which is only a subset,
albeit a critical one, of the company’s performance.
Core Revenue/Margin excludes the impact of a) foreign currency changes and b)
revenue/expenses associated with acquisitions or divestitures completed within
the last twelve months. We exclude from the current period the impact of foreign
currency changes as currency rates can fluctuate based on factors outside our
control and may obscure underlying growth trends. To determine this impact,
current period results for entities reporting in currencies other than United
States dollars are converted into United States dollars at the actual exchange
rates in effect during the respective prior periods. Given the nature, size and
number of acquisitions can vary significantly from period to period and as
compared to our peers, we also exclude revenue/expenses associated with recently
acquired businesses to facilitate comparisons of growth and analysis of
underlying business trends.
Free cash flow includes cash provided by operating activities calculated
according to GAAP less net investments in property, plant and equipment.
Management believes free cash flow provides useful supplemental information
regarding the company's ability to generate cash after investments required to
support ongoing business operations and facilitates an evaluation of the
company's liquidity, financial flexibility, and capital allocation priorities.
Percentages and period-over-period changes are calculated using underlying
unrounded values and may not precisely reconcile to the rounded figures
presented.
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