Home / Business and Economy / Keysight Soars on Strong AI Demand Forecast
Keysight Soars on Strong AI Demand Forecast
24 Feb
Summary
- Keysight forecasts Q2 profit above expectations, shares jump 15%.
- AI-driven data center demand significantly boosted Q1 communications revenue.
- Company expects $1.69B-$1.71B in Q2 revenue, exceeding $1.51B estimate.
Electronic equipment maker Keysight Technologies has projected second-quarter profits that surpass analyst expectations, leading to a significant rise in its stock value. The company anticipates second-quarter revenue between $1.69 billion and $1.71 billion, outperforming the $1.51 billion average estimate. Forecasted adjusted earnings per share are set at $2.27 to $2.33, also exceeding the $1.91 per share estimate.
This positive outlook stems partly from strong first-quarter performance, where Keysight exceeded revenue and profit predictions. Its communications solutions unit reported a 27% revenue increase to $1.12 billion, driven by escalating investments in AI-focused data center infrastructure, non-terrestrial networks, and defense modernization efforts. The company reported first-quarter revenue of $1.6 billion and adjusted earnings per share of $2.17.
