Keysight Technologies to Report Q3 Results: Revenue Growth Expected to Boost Earnings

Keysight Technologies is set to report Q3 results on Aug. 19. The company is expected to report higher year-over-year revenues, driven by strength in the AI data center market, aerospace, defense, and government end markets, and healthy momentum in software and services. Collaborations with established sector players are also expected to boost business. The Zacks Consensus Estimate for revenues is $1.31 billion, indicating year-over-year growth, and adjusted earnings per share is pegged at $1.68.

Keysight Technologies, Inc. (KEYS) is scheduled to release its third-quarter fiscal 2025 results on Aug. 19, after the closing bell. The company, based in Santa Rosa, CA, is expected to report higher year-over-year revenues, driven by strength in the AI data center market, aerospace, defense, and government end markets, as well as healthy momentum in software and services. Collaborations with established sector players are also anticipated to boost business.

The Zacks Consensus Estimate for revenues is $1.31 billion, indicating year-over-year growth from $1.22 billion. The consensus estimate for adjusted earnings per share is pegged at $1.68, suggesting an improvement from $1.57 reported a year ago. Analysts project that Keysight will announce quarterly earnings of $1.68 per share, representing a 7% increase year over year [3].

During the quarter, Keysight announced several key collaborations and advancements. AMD utilized Keysight's solution to test electrical compliance for pre-production AMD server CPUs, leveraging the company's 64 GBaud High Performance BERT and 59 GHz UXR-Series Oscilloscope. Additionally, Keysight collaborated with Synopsis to address pain points in radio frequency chip design, streamlining the migration process. These advancements are expected to generate incremental demand for Keysight’s solutions.

Keysight also announced that Japanese technology giant Fujitsu has opted to deploy the Keysight Quantum Control System in its 256-qubit superconducting quantum computer. The company delivered the world’s largest commercial quantum control system to the National Institute of Advanced Industrial Science and Technology in Japan, highlighting its growing prowess in Quantum Computing.

The company's Zacks Rank is currently #3, indicating a "Hold" rating. While the Earnings ESP for KEYS is 0.00%, with both the Most Accurate Estimate and the Zacks Consensus Estimate pegged at $1.68, the chances of an earnings beat are not conclusively predicted [1][2].

Analysts are closely monitoring Keysight's performance, with revenue estimates for the Communications Solutions Group segment at $909.4 million, indicating 7.4% year-over-year growth, and for the Electronic Industrial Solutions Group vertical at $401.3 million [1][2][3].

References:
[1] https://www.nasdaq.com/articles/keys-set-report-q3-results-will-revenue-growth-boost-earnings
[2] https://finviz.com/news/140928/keys-set-to-report-q3-results-will-revenue-growth-boost-earnings
[3] https://www.nasdaq.com/articles/keysight-keys-q3-earnings-horizon-analysts-insights-key-performance-measures