Keysight Technologies Q1 Revenue Jumps 23% to $1.6B as Profit Surges 66%
Keysight Technologies (NYSE: KEYS), a provider of electronic design and test solutions, reported revenue of $1.6 billion for the quarter ending January 31, 2026, up 23% from $1.3 billion in the prior-year period. Net income reached $281 million.
Keysight Technologies (NYSE: KEYS), a provider of electronic design and test solutions, reported revenue of $1.6 billion for the three months ending January 31, 2026, a 23% increase from $1.3 billion in the same quarter last year. The Delaware-incorporated company posted net income of $281 million, up 66% from $169 million in the prior-year quarter. Read more earnings reports.
Operating income for the first quarter of fiscal 2026 climbed to $439 million from $354 million a year earlier, reflecting improved margins as revenue growth outpaced cost increases. The company recorded an income tax benefit of $83 million in the current quarter, compared to a $30 million tax expense in the prior-year period.
Segment Performance
The Communications Solutions Group generated $1.12 billion in revenue during the quarter, up from $883 million in the year-ago period. The Electronic Industrial Solutions Group contributed $476 million, compared to $415 million in the prior-year quarter.
Cost of goods sold rose to $605 million from $478 million year-over-year. Research and development expenses increased to $279 million from $230 million, while selling, general and administrative expenses climbed to $352 million from $278 million.
Cash and Balance Sheet
Cash and cash equivalents stood at $2.18 billion as of January 31, 2026, up from $1.87 billion at October 31, 2025. The company generated $441 million in cash from operations during the quarter, compared to $378 million in the prior-year period.
Total assets increased to $11.48 billion from $11.30 billion at the end of the prior quarter. Long-term debt remained unchanged at $2.53 billion. Stockholders' equity rose to $6.21 billion from $5.88 billion at October 31, 2025.
Per Share Results
Diluted earnings per share came in at $1.63 for the quarter, up from $0.97 in the year-ago period. The company had 173 million weighted average diluted shares outstanding, down slightly from 174 million a year earlier. The company currently has 171.5 million shares outstanding.
Financial Summary
| Metric | Q1 FY2026 | Q1 FY2025 | Change |
|---|---|---|---|
| Revenue | $1.60 billion | $1.30 billion | +23% |
| Operating Income | $439 million | $354 million | +24% |
| Net Income | $281 million | $169 million | +66% |
| Diluted EPS | $1.63 | $0.97 | +68% |
| Cash from Operations | $441 million | $378 million | +17% |
Keysight used $44 million in investing activities and $99 million in financing activities during the quarter. Inventory remained relatively flat at $1.05 billion, while accounts receivable declined slightly to $914 million from $939 million at the prior quarter end.