Keysight Technologies Inc. reported third-quarter revenue of $1.85 billion, a 37% increase from the same period a year earlier, and adjusted earnings per share of $3.07, surpassing analyst expectations by 24%.
The Santa Rosa, California-based company’s orders exceeded $2 billion for a second consecutive quarter, while cash flow from operations rose to $437 million and free cash flow reached $403 million, both up from the prior-year period. Shares were up 3% in extended trading after the results were released.
Segment performance showed the Communications Solutions Group generated $1.35 billion in revenue, up 43% year-over-year, driven by a 56% increase in commercial communications and a 14% rise in aerospace, defense and government markets. The Electronic Industrial Solutions Group posted revenue of $501 million, a 21% gain, with growth across semiconductor, general electronics, automotive and energy markets.
For the fourth quarter, Keysight guided revenue to $1.93 billion to $1.95 billion, above the consensus estimate of $1.82 billion, implying roughly 37% year-over-year growth at the midpoint. Adjusted earnings per share are projected to range from $3.34 to $3.40, compared with the consensus forecast of $2.68.
