Keysight Technologies Inc. is set to report fiscal third-quarter results after Tuesday’s market close, with analysts anticipating a 44.2% year-over-year increase in earnings per share to $2.48, up from $1.72 a year ago. Revenue is forecast to rise 29.6% to $1.75 billion, following the $1.72 billion reported in the prior quarter. The company, based in Santa Rosa, California, has seen its stock trade near a 52-week high of $374.96, closing Friday at $361.15 with a market valuation of $61.7 billion.
The anticipated growth reflects accelerating demand for AI-related testing solutions, with AI currently contributing a mid-teens percentage of total revenue. Over half of this AI revenue stems from research and development use cases, as customers scale infrastructure to support 800-gigabit systems, advance 1.6-terabit R&D, and prepare for 3.2-terabit networks. Interconnect technologies driving this demand include Ethernet, InfiniBand, copper, and co-packaged optics.
Analyst sentiment remains bullish, with 10 of 12 covering analysts rating the stock a buy. The consensus price target stands at $388.33, implying a 7.5% upside potential. Morgan Stanley’s Meta Marshall upgraded Keysight from Equal-Weight to Overweight in July, raising her target from $350 to $400. Sequential earnings growth is expected to moderate from the prior quarter’s $2.87 EPS, though revenue is projected to climb further from the $1.72 billion reported in May.
