Keysight Technologies Inc (NYSE:KEYS) stock rallies 18.93% (As on February 24, 11:11:48 AM UTC-4, Source: Google Finance) after the company reported first quarter results that exceeded analyst expectations and issued second quarter guidance well above Wall Street estimates. The Communications Solutions Group reported revenue of $1.12 billion, up 27% YoY, driven by 33% growth in commercial communications and 18% growth in aerospace, defense, and government. The Electronic Industrial Solutions Group generated $476 million in revenue, up 15% YoY, with double-digit growth across automotive and energy, general electronics, and semiconductor markets. The company noted its outlook does not include potential impacts from the February 20, 2026 Supreme Court ruling on IEEPA tariffs. Operating cash flow reached $441 million, while free cash flow totaled $407 million for the quarter.

Meanwhile, this quarter, Keysight collaborated with MediaTek to progress standards around integrated sensing and communication use cases. In addition, the company registered multiple wins for the newly launched RaceSim AI RAN offering, which makes possible the emulation of real-world network environments to train AI models for network functions. In aerospace, defense, and government, we saw record quarter one orders and growth across all regions, driven by heightened global focus on deterrence and defense modernization priorities. KEYS secured multiple wins in North America for Keysight’s high-performance threat emulators to meet critical spectrum operation requirements. Keysight is actively engaged with multiple European primes and government agencies in the areas of signal detection and recording, radar phased array antenna characterization, over-the-air 5G field deployments, and precision angle-of-arrival characterization applications. In Electronic Industrial Solutions Group, orders and revenue both grew double digits across all three EISG markets of general electronics, semiconductors, and automotive and energy.

KEYS in the first quarter of FY26 has reported the adjusted earnings per share of $2.17, beating the analysts’ estimates for the adjusted earnings per share of $2. The company had reported the adjusted revenue growth of 23 percent to $1.60 billion in the first quarter of FY26, beating the analysts’ estimates for revenue of $1.54 billion.

Keysight’s second quarter guidance significantly exceeded expectations, with the company projecting revenue of $1.69 billion to $1.71 billion. The midpoint of $1.70 billion represents a substantial beat versus the analyst consensus of $1.51 billion. The company expects adjusted earnings per share of $2.27 to $2.33 for the second quarter, with the midpoint of $2.30 well above the $1.91 consensus estimate.