Keysight Hits Record High as AI Infrastructure Demand Drives Its Biggest Earnings Beat in Years - 24/7 Wall St.[S&P 5006,876.00 +0.41%][Dow Jones49,123.20 +0.56%][Nasdaq 10024,951.20 +0.84%][Russell 20002,643.07 +0.56%][FTSE 10010,682.60 -0.01%][Nikkei 22557,970.30 +2.06%][Stock Market Live February 24, 2026: S&P 500 (SPY) Rebounding from Monday Disaster][Investing]# Keysight Hits Record High as AI Infrastructure Demand Drives Its Biggest Earnings Beat in Years### Quick ReadKeysight Technologies (KEYS) hit ...

Financial Performance - Keysight achieved record results in Q1 2026, with total revenue of $1.6 billion, up 23% year-over-year, driven by strong growth across all business segments [18][19] - Earnings per share reached $2.17, reflecting a 19% increase, supported by a gross margin of 66.7%, which improved by 90 basis points [20][19] - Orders totaled $1.645 billion, representing a 30% increase on a reported basis and a 22% increase on a core basis [19] Business Segment Performance - The Communication Solutions Group generated revenue of $1,124 million, up 27% on a reported basis and 16% on a core basis, with a gross margin of 68.5% [20][21] - The Electronic Industrial Solutions Group reported revenue of $476 million, an increase of 15%, with growth across general electronics, semiconductors, and automotive markets [21][20] - Aerospace, Defense, and Government achieved revenue of $366 million, an 18% increase, driven by heightened global focus on defense modernization [21][13] Market Trends and Drivers - Demand for AI-driven technology transformations and next-generation connectivity is accelerating, with significant growth in wireline business surpassing wireless for the first time [5][7] - The industry is moving towards higher speeds and Ethernet-based AI networking, creating more test opportunities for Keysight [8][10] - Increased defense spending in Europe and the U.S. is expected to sustain growth in the aerospace and defense sector [14][40] Company Strategy and Competitive Position - Keysight's strategic roadmap focuses on capitalizing on AI infrastructure, semiconductor complexity, and defense modernization [5][17] - The company is well-positioned to leverage its differentiated portfolio to address increasing design complexity and accelerate innovation [6][17] - Keysight's competitive advantage lies in its solutions-oriented approach, enabling it to stay ahead of customer needs in rapidly evolving markets [68][69] Management Commentary on Future Outlook - Management expressed confidence in sustaining growth momentum, with expectations for total annual revenue and earnings growth just above 20% for fiscal 2026 [24][23] - The company anticipates continued strong demand across its diversified end markets, particularly in AI and defense sectors [17][24] - Management noted that the integration of recent acquisitions is on track and expected to enhance operational efficiencies [23][22] Other Important Information - Keysight ended the quarter with approximately $2.2 billion in cash and cash equivalents, generating cash flow from operations of $441 million [22] - The company repurchased approximately 420,000 shares at an average price of $207, totaling $87 million [22] Q&A Session Summary Question: Insights on wireline vs wireless business growth - Management highlighted that wireline business has surpassed wireless for the first time, driven by robust demand for R&D and manufacturing solutions [26][27] Question: Operating margin expectations - Management indicated a target of 40% core leverage on mid-single-digit growth, with current operating margin leverage at 41% due to strong growth [28][29] Question: Customer base expansion in AI - Management noted a broadening of the customer base, with significant contributions from silicon companies and hyperscalers, alongside emerging neoclouds [34][36] Question: Aerospace and defense spending trajectory - Management expressed optimism about sustained growth in defense spending, particularly in Europe, and the potential for a new run rate in this business [38][40] Question: Supply chain and memory availability - Management stated that they are well-prepared for scaling operations and are not significantly exposed to high-demand memory shortages [60][62] Question: Competitive landscape in AI - Management emphasized Keysight's solutions-oriented approach as a competitive advantage, allowing it to stay ahead in rapidly evolving AI markets [67][68]

Keysight Technologies (NYSE:KEYS) Q1 2026 Earnings call February 23, 2026 04:30 PM ET Company ParticipantsKailash Narayanan - President of the Communication Solutions GroupLiz Morali - VP of Investor RelationsNeil Dougherty - EVP and CFOSatish Dhanasekaran - President and CEOSteve Yoon - SVP of Global SalesConference Call ParticipantsAaron Rakers - Managing Director and Senior Equity AnalystAndrew Spinola - Director and Senior Equity AnalystAtif Malik - Managing Director and Senior Equity AnalystDavid Ridle ...

Keysight Technologies (NYSE:KEYS) Q1 2026 Earnings call February 23, 2026 04:30 PM ET Speaker15Good day, ladies and gentlemen, and welcome to Keysight Technologies fiscal 1st quarter 2026 earnings conference call. My name is Victoria, and I will be your lead operator today. If at any time during the conference you need to reach an operator, please press star zero. This call is being recorded today, Monday, February 23rd, 2026, at 1:30 P.M. Pacific Time. I would now like to hand the call over to Liz Morali, ...

Ralliant FY Conference Summary Company Overview - **Company**: Ralliant (NYSE: RAL) - **Event**: FY Conference held on February 18, 2026 - **Key Speakers**: Tami Newcombe (CEO), Neill Reynolds (CFO) Core Industry Insights - Ralliant operates in the **Test and Measurement (T&M)** and **Sensors and Safety Systems** segments, with a focus on industrial manufacturing and defense markets - The company has recently transitioned to a standalone public entity after spinning off in June 2025 Financial Performance and Guidance - **Growth Rate**: Projected growth for Q1 2026 is between **5%-8%** [2] - **Profitability**: Adjusted EBITDA margins are expected to improve, with a target of **40%-45% incrementals** as revenue grows [9][30] - **Earnings Guidance**: For 2026, Ralliant anticipates a growth rate of **2%-6%** with a focus on improving margins from a new baseline [29] Key Financial Metrics - **Share Buyback**: Executed **$39 million** in share buybacks since the last earnings call [4] - **Free Cash Flow**: Historical performance shows **117%** free cash flow generation, indicating strong operational efficiency [6] - **Cost Savings Program**: Announced a cost savings initiative of **$9 million-$11 million** post-spin, on track for implementation [8] Market Dynamics - **Industrial Manufacturing**: Experienced a **4% growth** in Q4, indicating a recovery in short-cycle industrial activity [11] - **Defense Sector**: Defense and space markets are expected to contribute significantly to revenue, with a backlog of long-term production programs [20][21] - **T&M Segment**: The diversified electronics within T&M is showing signs of improvement, driven by increased CapEx spending from customers [16] Operational Strategies - Ralliant emphasizes **operating rigor** to ensure profits grow faster than revenue, with a commitment to maintaining a strong focus on cost management and efficiency [3][40] - The company is investing in **R&D** and **capacity expansion** to support higher growth ambitions, particularly in segments with high demand [48] Competitive Landscape - Ralliant maintains a strong brand reputation in the T&M space, with customers prioritizing reliability and expertise over price [68] - The competitive environment has seen an influx of low-end players, particularly from China, but Ralliant's established brand and service offerings provide a competitive edge [84] Risks and Considerations - **Margin Sensitivity**: The T&M segment is highly volume-sensitive, which could lead to fluctuations in margins based on product mix and demand [70] - **Cost Structure**: The company acknowledges a lower starting point for costs post-spin, with ongoing efforts to optimize operational expenses [39][62] Conclusion - Ralliant is positioned for growth in 2026, with a focus on improving profitability and leveraging its strong market presence in the T&M and defense sectors. The company is committed to operational efficiency and strategic investments to drive future success.

Core Insights - VIAVI Solutions Inc. will showcase over 30 demonstrations at Mobile World Congress (MWC) Barcelona 2026, focusing on AI data center, security, quantum-safe communications, mission-critical communications, AIOps, 6G, and AI-RAN [1] - The convergence of networks, AI, security, wireless, photonics, and sensing is redefining the design, validation, and protection of networks and critical infrastructure in AI-first environments [1] - Partnerships are increasingly critical as technology domains converge, with VIAVI collaborating with over 20 partner organizations for additional demonstrations [1] Solution Areas - The demonstrations will cover five core solution areas, including digital twin technologies for training AI-RAN algorithms for 6G, validation of AI data center scale-up/scale-out, assured Position, Navigation and Timing (APNT), Non-Terrestrial Network (NTN) testing, and optimization for PQC/QKD [1] - VIAVI's new ePRTC360+ will be displayed, which is the only non-Cesium holdover clock maintaining 100 ns accuracy in GNSS-denied environments [1] Collaboration and Partnerships - Collaborators include notable organizations such as the AI-RAN Alliance, Amphenol, AWS, Calnex, Ericsson, GlobalLogic, Infosys, ITRI, Nokia, NVIDIA, and Rohde & Schwarz [1] - The importance of partnerships is emphasized as they enhance the capabilities and effectiveness of the solutions being demonstrated [1]

Core Viewpoint - VIAVI Solutions Inc. has launched the Cesium-less ePRTC360+ holdover solution, which serves as a cost-effective alternative to Cesium clocks, meeting ITU-T G.8272.1 standards for timing accuracy without time limitations [1] Group 1: Product Features - The ePRTC360+ meets the ITU-T G.8272.1 standard, achieving short-term drift of less than 30 ns and long-term drift of less than 100 ns over 14 days, traceable to UTC [1] - The technology maintains 100 ns accuracy during GNSS-denied threats through the resilient altGNSS GEO-L service, which has no time limit [1] - The ePRTC360+ integrates an augmented VIAVI SecureTime GEO anti-jamming antenna and an enhanced GNSS anti-spoofing antenna, providing spoofing detection and mitigation [1] Group 2: Market Impact - The affordability of ePRTC360+ clocks allows for deployment across the sync network, particularly at edge sites that were previously cost-prohibitive with Cesium clocks [1] - The product enhances end-to-end sync network robustness and holdover reliability through meshed network PTP feeds as backup, especially in cases of local or regional jamming and spoofing threats [1] - The ePRTC360+ addresses limitations of Cesium clocks, such as sensitivity to shock, lengthy startup procedures, and hazardous material disposal requirements [1] Group 3: Demonstration and Future Outlook - The ePRTC360+ will be demonstrated for the first time at Mobile World Congress (MWC) Barcelona 2026, scheduled for March 2-5 in Barcelona, Spain [1] - VIAVI Solutions is positioned as a leader in test and measurement and optical technologies, providing solutions for critical infrastructure across various sectors [1]

Core Insights - Keysight will showcase end-to-end solutions for AI system design, interoperability validation, and large-scale performance at DesignCon 2026 [1] Company Highlights - The focus will be on enabling AI system design, which indicates a strategic emphasis on artificial intelligence technologies [1] - Interoperability validation solutions will be presented, highlighting the importance of compatibility in AI systems [1] - Large-scale performance solutions will be featured, suggesting advancements in handling extensive data and processing requirements [1]

We recently published 10 Big Names, Bigger Losses. Ralliant Corporation (NYSE:RAL) was one of the worst performers on Thursday. Ralliant fell to a new all-time low on Thursday, as investors disposed of positions after the company swung to heavy losses last year. At intra-day trading, Ralliant Corporation (NYSE:RAL) declined to its lowest price of $37.27 before paring losses to end the day just down by 31.79 percent at $38.39 apiece. This followed news during the day that it incurred a net loss of $1.2 b ...

Financial Data and Key Metrics Changes - The company booked over $550 million in orders in Q1 2026, an increase of 143% year-over-year [4] - Top line sales growth was 35%, with adjusted EBIT margin expanding by 380 basis points, leading to a 73% increase in adjusted earnings per share to a record $1.64 [5][12] - Operating cash flow more than doubled to $68.9 million on a continuing operations basis [16] Business Segment Data and Key Metrics Changes - Aerospace and Defense segment saw orders over $380 million, compared to $75 million in the prior year, with sales up 76% driven by strong demand [12][6] - Utility Solutions Group orders increased by 10%, but sales were up only 1% due to declines in the renewables business [14] - The Test business had orders up over 17% and sales up nearly 27%, with adjusted EBIT margins improving to 13.8% [16] Market Data and Key Metrics Changes - The company noted strong order flow for services and condition monitoring in the Utility Solutions Group, but faced headwinds in the renewables market [7][8] - The aerospace market is experiencing increasing build rates for commercial aerospace OEMs, contributing to the positive outlook [6] Company Strategy and Development Direction - The company is raising its full-year sales and earnings guidance due to strong Q1 results and record backlog [10] - Focus remains on strategic acquisitions in utility, aircraft components, and Navy segments to drive long-term growth [49] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term demand across markets, particularly in Navy programs, despite short-term lumpiness in orders [25] - The renewables market is expected to stabilize in the second half of 2026 as developers complete current projects [40] Other Important Information - The company is actively rebuilding a pipeline of M&A opportunities and is focused on strategic acquisitions [48] - Full-year adjusted earnings per share guidance has been increased to a range of $7.90-$8.15, representing growth of 31%-35% compared to 2025 [18][19] Q&A Session Summary Question: Update on A&D orders and ship set content - Management indicated long-term demand is strong, but specifics on platforms are not available due to the nature of contracts [25][26] Question: Revenue guidance appears conservative - Management expects Q1 to be the strongest growth quarter, with solid growth tapering down through the year [34] Question: Strength in the test business - The test business saw a return to strong orders, particularly in electromagnetic compatibility and medical shielding [38] Question: Military business outside Navy - Management highlighted broad-based strength in military aircraft, including significant orders for F-15EX fighters and ongoing programs for F-35 [52] Question: Capital allocation and M&A opportunities - The company is focused on strategic acquisitions in utility and Navy segments, with a healthy pipeline of opportunities [49]