Keysight expects fourth-quarter revenue of up to $1.95 billion as AI data centre expansion drives demand for electronic testing and simulation tools.
Keysight Technologies has projected fourth-quarter revenue and adjusted earnings above market expectations, supported by increasing demand for electronic testing, design and simulation tools used in the expanding AI data centre ecosystem.
The California-based company expects fourth-quarter adjusted earnings of $3.34 to $3.40 per share, with revenue forecast between $1.93 billion and $1.95 billion for the quarter ending October 31. Analysts had estimated earnings of $2.70 per share and revenue of $1.81 billion, according to LSEG data.
Keysight provides electronic design, testing and simulation technologies to customers across the semiconductor, telecommunications, automotive, aerospace and defence industries. The rapid construction of AI data centres has emerged as an important growth driver for the company as operators invest in higher-performance networking and computing infrastructure.
The company’s Communications Solutions Group, which contributes roughly two-thirds of total revenue, recorded a 43% year-on-year increase in third-quarter revenue. Growth included a 56% increase in its commercial communications business and a 14% rise in aerospace, defence and government-related activities.
The segment supplies technologies and components, including transceivers, that are used in data-centre networking infrastructure. Increasing requirements for high-speed connectivity and testing as AI workloads expand have supported demand for Keysight’s products and software.
For the third quarter ended July 31, Keysight reported revenue of $1.85 billion, representing a 36.5% increase from the same period a year earlier. Adjusted earnings rose to $3.07 per share.
The results also exceeded analyst expectations. The market had been looking for quarterly earnings of $2.48 per share and revenue of $1.74 billion.
Following the outlook, Keysight shares rose nearly 5%, reflecting investor optimism over the company’s exposure to continued AI-related data centre investment and demand for advanced electronic testing and measurement technologies.
