Keysight Reports $349M Q2 Profit, $1.72B Revenue; AI Backlog Hits $500M
Keysight reported Q2 net income of $349 million, adjusted EPS of $2.87 beating expectations, and revenue of $1.72 billion. Q3 guidance calls for $1.73–1.75 billion revenue and $2.43–2.49 EPS, and the call noted record orders driven by a $500–600 million AI backlog and integration delays.
1. Q2 Financial Results
Keysight posted net income of $349 million, or $2.02 per share, and adjusted earnings of $2.87 per share on revenue of $1.72 billion, surpassing analysts’ consensus of $2.33 per share.
2. Q3 Guidance
For the quarter ending in July, management forecasts revenue of $1.73–1.75 billion and EPS between $2.43 and $2.49, based on scheduled shipments and robust in-quarter order conversions.
3. Earnings Call Highlights
CEO highlighted record orders across AI, aerospace, defense, and semiconductor segments, noting an AI backlog of $500–600 million in the first half as customers accelerated pipeline velocity.
4. Integration and Market Risks
Executives warned that recent acquisitions have not yet raised revenue expectations, reflecting integration challenges, and flagged that heavy reliance on AI exposes the company to shifting market dynamics.