Keysight Surges 2.87% on AI and Semiconductor Momentum, Ranks 347th in U.S. Daily Volume

Market Snapshot

On November 24, 2025, Keysight Technologies (KEYS) surged 2.87% in after-hours trading to $177.67, nearing its 52-week high of $187.67. The stock’s trading volume reached $0.5 billion, a 32.61% increase from the previous day, ranking it 347th among U.S. stocks in daily volume. This performance followed the company’s Q4 2025 earnings release, which highlighted a 10% year-over-year revenue increase to $1.419 billion and a 16% rise in non-GAAP earnings per share to $1.91, both exceeding analyst expectations. The strong order backlog of $2.7 billion and improved operating margins of 26.3% further underscored the company’s momentum.

Key Drivers of Performance

Keysight’s Q4 2025 results reflect robust demand for AI infrastructure and semiconductor testing solutions, driven by its strategic focus on high-growth technology segments. The Communications Solutions Group (CSG), which accounts for 70% of total revenue, reported $990 million in revenue, a 11% year-over-year increase, primarily fueled by AI data center infrastructure investments. However, operating margins for this segment declined by 120 basis points to 26.7%, indicating potential cost pressures in capital-intensive AI infrastructure projects.

Conversely, the Electronic Industrial Solutions Group (EISG) demonstrated stronger profitability, with $429 million in revenue (up 9% year-over-year) and a significant 430 basis point operating margin expansion to 25.4%. This growth was attributed to double-digit expansion in the semiconductor business, a sector where Keysight’s advanced testing solutions are in high demand. The EISG’s performance highlights the company’s ability to leverage technological innovation and margin-efficient operations in industrial markets.

Strategic acquisitions played a pivotal role in Keysight’s growth trajectory. During fiscal 2025, the company allocated $1.7 billion to acquire Spirent, Optical Solutions Group, and PowerArtist, expanding its software-centric portfolio and addressable market by $1.25 billion. These acquisitions are expected to contribute $375 million in revenue in fiscal 2026, with acquired businesses exhibiting gross margins exceeding 75% and anticipated EPS accretion within 12 months. The CEO emphasized that these moves align with Keysight’s long-term strategy to strengthen its position in next-generation connectivity, compute, and semiconductor technologies.

The company’s share repurchase program and capital allocation strategy further bolstered investor confidence. In fiscal 2025, Keysight repurchased 2.4 million shares for $375 million and announced a new $1.5 billion share repurchase authorization. This aggressive buyback reflects management’s confidence in the company’s financial position and its ability to generate shareholder value. Additionally, the robust $2.7 billion backlog positions Keysight to sustain revenue growth in fiscal 2026, particularly in AI and semiconductor markets.

Forward guidance for fiscal 2026 underscores Keysight’s optimistic outlook. The company projected Q1 2026 revenue between $1.53 billion and $1.55 billion, with non-GAAP earnings per share expected to range from $1.95 to $2.01. CEO Satish Dhanasekaran highlighted opportunities in 6G development (with standardization anticipated between 2028 and 2029) and continued semiconductor testing demand. However, the company acknowledged potential headwinds, including supply chain challenges, market saturation in wireless segments, and macroeconomic pressures that could impact customer spending.

Collectively, these factors—strong demand in AI and semiconductor testing, strategic acquisitions, disciplined capital allocation, and a robust backlog—position Keysight to maintain its growth trajectory. The stock’s 2.87% surge on November 24 reflects market validation of these fundamentals, as investors anticipate continued expansion in high-growth technology sectors despite macroeconomic uncertainties.