KEYS Surges 15.20% on Strong Earnings, Strategic Buys Drive AI Growth Optimism

The share price rose to its highest level so far this month, with an intraday gain of 13.41% on Nov. 26. Keysight Technologies Inc. (KEYS) has surged 15.20% over three trading days, fueled by robust fourth-quarter earnings, strategic acquisitions, and heightened analyst optimism. The rally reflects confidence in the company’s ability to capitalize on AI-driven infrastructure demand and its expanding software capabilities.

Keysight reported Q4 2025 revenue of $1.42 billion, exceeding estimates, with non-GAAP EPS of $1.91, above forecasts. Strong core business growth, driven by AI data center solutions and semiconductor testing, underpinned the results. Analysts from Citi, UBS, and BofA raised price targets, citing Keysight’s FY2026 guidance and recent acquisitions of Spirent and Synopsys Optical Solutions Group. These moves are expected to add 700 basis points of revenue growth, with software now accounting for 37% of total sales.

The stock’s surge aligns with broader trends in AI and 6G infrastructure. Keysight’s wireline business saw double-digit growth in Q4, with AI-related sales projected to surpass 10% of revenue. The company also launched the i7090 Massively Parallel Board Test System in November 2025, addressing AI workload scalability. While near-term margin pressures from tariffs and integration risks persist, management anticipates recovery within six months. A $1.5 billion share repurchase program and $188 million in Q4 free cash flow further bolster investor confidence, though analysts caution that valuation levels and geopolitical risks remain watchpoints.