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Keysight Technologies’ 56% Order Jump Signals A Breakthrough Quarter; But Is It Enough?

Keysight Technologies reported a record second quarter for fiscal 2026, with strong execution across its business segments driving significant year-over-year growth in orders, revenue, earnings per share, and free cash flow. Orders increased 56% on a reported basis to over $2 billion, with core order growth—excluding acquisitions and currency impacts—at 48%. Revenue rose 31% reported and 24% on a core basis to $1.7 billion. Earnings per share increased 69%, aided by improved gross margins of 72.3%, although adjustments related to the U.S. Supreme Court decision invalidating certain tariffs reduced revenue and costs by $40 million and $97 million respectively. Excluding these onetime impacts, revenue grew 35% with adjusted EPS up 52%. The company’s Communications Solutions Group (CSG) led growth with 35% revenue increase fueled by broad strength across commercial communications and aerospace, defense, and government markets.