Description

Keysight Technologies Is Riding the AI Infrastructure Shockwave—Can It Become the Quiet “Picks-and-Shovels” Winner of AI Racks and Clusters?

Keysight Technologies has reported a robust fiscal first-quarter performance for 2026, with both revenue and earnings per share surpassing expectations. The company recorded total revenue of $1.600 billion, representing a 23% increase on a reported basis and a 14% increase on a core basis, which excludes recent acquisitions and currency impacts. Orders notably grew by 30% on a reported basis and 22% on a core basis. Keysight’s gross margin reached 66.7%, an increase attributed to a favorable product mix and recent acquisitions contributing higher-margin revenue. Keysight’s Communications Solutions Group (CSG) achieved a revenue of $1.124 billion, marking a 27% year-over-year increase, driven by a 33% rise in commercial communications and an 18% increase in aerospace, defense, and government revenues. The Electronic Industrial Solutions Group (EISG) also performed strongly with a 15% revenue upsurge across its markets: general electronics, semiconductors, and automotive.