Keysight Technologies Q3 Revenue Rises 11%, Raises FY22 Outlook

Keysight Technologies (KEYS) shares are down despite reporting strong Q3 results and raising its FY23 outlook. The company's revenue was $1.35 bln, up 10% YoY, and non-GAAP net income was $297 mln, or $1.72 per share, up from $1.57 per share in Q3 2022. KEYS expects Q4 revenue to be between $1.37 bln and $1.39 bln and non-GAAP EPS between $1.79 and $1.85. The company raised its FY23 guidance, expecting revenue growth of approximately 7% and non-GAAP EPS growth of about 13%.

Keysight Technologies (KEYS) shares fell by 3.8% to trade at $157.20 on Wednesday, despite reporting better-than-expected third-quarter (Q3) financial results and raising its fiscal year 2023 (FY23) outlook. The company reported quarterly earnings of $1.72 per share, surpassing the analyst consensus estimate of $1.67 per share. Revenue for the quarter was $1.352 billion, beating the consensus estimate of $1.318 billion [1].

The company expects fourth-quarter (Q4) revenue to be in the range of $1.370 billion to $1.390 billion, with non-GAAP earnings per share (EPS) projected to be between $1.79 and $1.85. Keysight has also raised its full-year growth outlook, expecting revenue growth of approximately 7% and non-GAAP EPS growth of about 13% for FY23 [2].

Satish Dhanasekaran, Keysight’s President and CEO, attributed the strong results to the company's strategy and solid customer engagements. He also noted that the demand environment has remained resilient despite an uncertain macroeconomic backdrop. The company expects to mitigate the impact of new tariff rates, with annual exposure estimated to increase by about $75 million [2].

Analysts have adjusted their price targets following the earnings announcement. B of A Securities analyst David Ridley-Lane maintained a Neutral rating and raised the price target from $175 to $179. Barclays analyst Tim Long maintained the stock with an Overweight rating and lowered the price target from $200 to $195 [1].

Despite the strong results and raised outlook, KEYS shares fell due to market sentiment and analyst price target adjustments. Investors should closely monitor the company's progress and the impact of tariffs on its financial performance.

References:
[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/47241877/these-analysts-revise-their-forecasts-on-keysight-technologies-after-q3-earnings
[2] https://finance.yahoo.com/news/keysight-technologies-raises-fiscal-2025-102240747.html