Keysight Technologies Q3 Revenue Surges 37% on AI Data Center Demand, Shares Jump 5%

Keysight Technologies reported fiscal third-quarter revenue of $1.85 billion, beating the consensus estimate of $1.74 billion and rising 37% year over year. Adjusted earnings per share came in at $3.07, topping the $2.48 estimate by $0.59 and representing a 78% increase from the prior-year period. GAAP net income doubled, rising 108% year over year to $397 million.

Free cash flow reached $403 million, well above the $193 million estimate and up 38% from a year ago. Growth was driven largely by surging demand from the AI data center buildout, with commercial communications cited as a key contributor. For the fiscal fourth quarter, Keysight guided revenue of $1.93 billion to $1.95 billion, above the consensus estimate of $1.81 billion, and guided adjusted profit above expectations as well.

Shares rose nearly 5% in after-hours trading following the results.