Keysight Technologies stock soars 24%, strong orders boost earnings guidance, Bank of America upgrades rating

LootboxPhobia · 2026-02-25T04:19:14+00:00

Keysight Technologies stock price rose 24% as its Q1 earnings exceeded expectations and it raised its FY2026 guidance. Core orders increased 22% year-over-year, and earnings per share beat estimates. Analysts upgraded the rating from Neutral to Buy, with the target price raised from $195 to $340 to reflect the company's strong order growth and high profit margins.

LootboxPhobia

2026-02-25 04:19:14

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Investing.com – Keysight Technologies (NYSE: KEYS) shares surged 24% after the company reported better-than-expected first-quarter results and raised its 2026 fiscal year guidance following stronger-than-expected order growth.

The test and measurement equipment company reported that core orders for the first quarter ending in January increased 22% year-over-year. Revenue and earnings per share both beat Wall Street estimates, with EPS surpassing market expectations by 17 cents.

Management raised its full-year 2026 adjusted EPS growth forecast from over 10% year-over-year to over 20%. The new guidance implies an adjusted EPS of at least $8.59 for fiscal 2026, higher than the market forecast of $8.11.

Bank of America analysts upgraded Keysight from Neutral to Buy after the earnings release, citing robust order growth. “Keysight Technologies (KEYS), as a leading test and measurement company, reported a 22% year-over-year increase in core orders for Q1 2026 (January), well above our 11% expectation. Management raised its full-year 2026 adjusted EPS growth forecast from over 10% to over 20%. This implies an EPS of $8.59 or higher for 2026, above the market forecast of $8.11. Given the broad strength in order growth, we are upgrading our rating from Neutral to Buy. We also raised our target price by $145 to $340, based on our upward revision of the 2027 EPS estimate, now at 33 times (previously 21 times). Our 33x target multiple premiums over the industry average of 31x to reflect Keysight’s higher-than-average profit margins and industry-leading market share,” the analyst said.

The firm raised its target price from $195 to $340, based on its upward revision of the 2027 adjusted EPS estimate at 33 times.

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