Keysight Technologies, Inc. (NYSE:KEYS) stock traded higher in premarket action Wednesday after the electronic test and measurement company reported second-quarter results that topped Wall Street expectations and raised its full-year outlook.

Earnings Snapshot

The company reported second-quarter earnings of $2.87 per share, beating the analyst consensus estimate of $2.32.

Revenue rose 31% year over year to $1.72 billion, slightly ahead of analyst estimates of $1.71 billion.

Orders climbed 56% year over year to more than $2 billion, supported by strong growth in the company's Business Communications solutions segment.

Keysight generated record free cash flow of $472 million during the quarter. The company ended the period with more than $2.4 billion in cash and cash equivalents.

Management said momentum in its AI-related business has already surpassed full-year 2025 levels, driven by growing demand for data center scaling, optical interconnects and AI system validation tools.

Segment And Business Performance

Keysight continued to benefit from strong demand in wireline communications, supported by increasing adoption of 800G and 1.6T architectures, along with early-stage development work tied to 3.2T technologies.

The wireless business also posted solid demand, aided by growth in non-terrestrial networks, 6G research initiatives and satellite connectivity programs.

In aerospace, defense and government markets, growth was driven by radar systems, spectrum management solutions and modernization programs, including U.S. Air Force contracts for advanced flight line testing systems.

The Electronic Industrial Solutions Group delivered a record quarter for both orders and revenue, supported by demand across semiconductor, automotive, energy and broader electronics markets.

Semiconductor-related demand remained strong, fueled by AI workloads, advanced-node chip development, silicon photonics and wafer-level testing applications.

Automotive and energy orders increased for a third consecutive quarter, driven by software-defined vehicles, EV charging infrastructure, in-vehicle connectivity, cybersecurity and over-the-air validation systems.

Outlook

Keysight expects third-quarter earnings in a range of $2.43 to $2.49 per share, above the analyst estimate of $2.14 per share. The company forecast third-quarter revenue between $1.73 billion and $1.75 billion, compared with analyst expectations of $1.64 billion.

For fiscal 2026, Keysight raised its outlook and now expects revenue growth in the high-20% range, citing strong demand visibility and a robust customer pipeline.

KEYS Price Action: Keysight shares were up 2.29% at $352.00 during premarket trading on Wednesday, according to Benzinga Pro data.

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