Keysight Technologies(US:KEYS)2026-02-23 21:08Financial Performance - Keysight Technologies reported record revenue of $1.60 billion for Q1 2026, a 23% increase from $1.30 billion in Q1 2025[5] - Non-GAAP net income for Q1 2026 was $376 million, or $2.17 per share, compared to $317 million, or $1.82 per share in Q1 2025[5] - The company reported a GAAP net income of $281 million, or $1.63 per share, compared to $169 million, or $0.97 per share in Q1 2025[5] - GAAP net income for Q1 2026 was $281 million, with diluted EPS of $1.63, compared to $169 million and $0.97 in Q1 2025, representing a 66% increase in net income[21] - Non-GAAP net income for Q1 2026 was $376 million, with diluted EPS of $2.17, up from $317 million and $1.82 in Q1 2025, reflecting a 18.6% increase in net income[21] - Total revenue for Q1 2026 was $1,600 million, a 23% increase from $1,298 million in Q1 2025[30] Revenue Breakdown - The Communications Solutions Group (CSG) generated $1,124 million in revenue, reflecting a 27% year-over-year growth, with commercial communications up 33% and aerospace, defense, and government up 18%[3] - Revenue for the Communications Solutions Group increased by 27% to $1,124 million in Q1 2026, compared to $883 million in Q1 2025[24] - Revenue for the Electronic Industrial Solutions Group rose by 15% to $476 million in Q1 2026, up from $415 million in Q1 2025[25] - Revenue from Aerospace, Defense and Government increased by 18% to $366 million in Q1 2026, compared to $311 million in Q1 2025[30] - Revenue from Commercial Communications surged by 33% to $758 million in Q1 2026, up from $572 million in Q1 2025[30] Cash Flow and Assets - Cash flow from operations was $441 million, up from $378 million in the same quarter last year[5] - Free cash flow for Q1 2026 was $407 million, compared to $346 million in Q1 2025, indicating a 17.6% increase[27] - As of January 31, 2026, Keysight's cash, cash equivalents, and restricted cash totaled $2.20 billion[5] - Total assets increased to $11.481 billion as of January 31, 2026, compared to $11.301 billion at the end of October 2025[17] Future Projections - Keysight expects Q2 2026 revenue to be between $1.690 billion and $1.710 billion, representing approximately 30% year-over-year growth[4] - Non-GAAP earnings per share for Q2 2026 are projected to be between $2.27 and $2.33, based on approximately 173 million diluted shares[4] Gross Margin - The gross margin for the Communications Solutions Group remained stable at 68% for both Q1 2026 and Q1 2025[24] - The gross margin for the Electronic Industrial Solutions Group improved slightly to 62% in Q1 2026 from 61% in Q1 2025[25] Group Performance - The Electronic Industrial Solutions Group (EISG) achieved $476 million in revenue, a 15% increase from the previous year, driven by double-digit growth across automotive, energy, general electronics, and semiconductor markets[3]