Keysight Technologies raised its full-year 2026 earnings outlook after guiding fourth-quarter revenue to $1.93 billion to $1.95 billion, citing strength in AI data center demand across its product portfolio.
The test and measurement company's Q4 guidance represents a midpoint of $1.94 billion, up from its prior range. Keysight, which designs and manufactures electronic measurement instruments for communications, aerospace and semiconductor customers, said the raise is due to accelerating orders from data center operators building out infrastructure for large language models and AI workloads.
The company's Q3 earnings announcement did not detail the specific magnitude of the full-year outlook increase, only that management raised guidance based on revised demand assumptions through the close of fiscal 2026. Keysight reported Q3 revenue of $1.91 billion, slightly above its prior guidance midpoint of $1.90 billion.
Rivals including Teradyne and LTX-Credence have similarly raised guidance in recent quarters as hyperscalers and cloud operators accelerated capital spending on GPU clusters and networking hardware required for generative AI deployment. Keysight's communications solutions group, which tests networking and RF components, has emerged as a particular beneficiary.
Keysight's fiscal year runs through October. The company is scheduled to report final Q4 and full-year results in late November. The revised guidance assumes no material revenue headwinds from supply chain or geopolitical factors over the next two months.
Keysight raised its full-year guidance on Q4 strength alone, indicating the company expects year-over-year growth in the final quarter even as its first three quarters of fiscal 2026 produced results in line with or slightly above prior expectations. The Q4 midpoint of $1.94 billion would represent approximately 2.1 percent sequential growth from Q3.
The near-term watch is whether Keysight sustains this demand level into fiscal 2027. If hyperscaler data center buildouts pause or slow in early 2027, the company's visibility into the following fiscal year will contract sharply.
