Slide 1: Keysight Technologies Q1 Fiscal Year 2026 Results
Keysight Technologies Q1 Fiscal Year 2026 Results February 23, 2026
Slide 2: Safe Harbor
Safe Harbor This communication contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created therein. Statements preceded by, followed by, or that
Slide 3: Key Takeaways
Key Takeaways Delivering Robust Seeing Accelerating Leveraging Organic & Creating Results - Q1'26 Demand Inorganic Portfolio Shareholder Value • Record Q1 orders • Convergence of • First-to-market • Topline growth structural tailwinds solutions to address driven by portfolio • Record revenue investm
Slide 4: Q1'26 Highlights
Q1’26 Highlights • Record revenue of $1.60B, +23% y/y (+14% core1) • Earnings per share2 of $2.17, +19% y/y Outstanding Q1 results exceeded 1 high end of guidance range • Robust growth in Communications Solutions (CSG) (+27%) and Electronic Industrial Solutions (EISG) (+15%) • Gross margin2 of 66.7%
Slide 5: Q1'26 Non-GAAP Financial Highlights
Q1’26 Non-GAAP Financial Highlights Orders Revenue Operating Margin EPS $1.645B $1.600B 27.4% $2.17 +30%y/y (+22%core*) +23%y/y (+14% core*) +20 basis points y/y +19%y/y * Core excludes the impact of currency, acquisitions or divestitures closed in last twelve months; reconciliations included. Recon
Slide 6: Revenue by Segment & by Region
Revenue by Segment & by Region Q1'26 Revenue: $1.600B 6
Slide 7: Revenue Trend by Region
Revenue Trend by Region +23% y/y (+10% core*) +27% y/y (+14% core*) +21% y/y (+18% core*) * Core excludes the impact of currency, acquisitions or divestitures closed in last twelve months; reconciliations included. 7
Slide 8: Q1'26 Communications Solutions Group Highlights
Q1’26 Communications Solutions Group Highlights Revenue • Record gross margin of 68.5%. $1,124M • Commercial Communications: Record revenue driven by double-digit growth in +27% y/y (+16% core*) both wireline and wireless. Strong order growth reflects broadening investment in AI data center, Edge AI
Slide 9: Q1'26 Electronic Industrial Solutions Group Highlights
Q1’26 Electronic Industrial Solutions Group Highlights Revenue • Automotive: Revenue and order growth driven by software-defined vehicles, ESI, $476M and optical solutions. +15% y/y (+9% core*) • Semiconductor: Wafer test solutions delivered double-digit revenue and order growth driven by memory and
Slide 10: Q1'26 Revenue By End Market
Q1’26 Revenue By End Market End Market Revenue YoY % Commercial $758M +33% Communications Aerospace, Defense & $366M +18% Government Electronic Industrial $476M +15% Solutions Total $1,600M +23% 10
Slide 11: Guidance and Financial Considerations
Guidance and Financial Considerations1 Q2'26 Guidance Revenue $1.690B – $1.710B Non-GAAP Earnings per share $2.27 – $2.33 Q2'26 Financial Assumptions • Interest Income, Interest Expense and Other Income/Expense: ~$0-2M net income • Non-GAAP tax rate of 14% for Q2'26 and FY26 • Guidance assumes Q2 we
Slide 12: Reconciliations
WW KEYSIGHT Reconciliations
Slide 13: Reconciliation of Core Revenue
RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY Three months ended January 31, Percent 2026 2025 Inc/(Dec) Revenue $ 1,600 $ 1,298 23% Adjustments: Revenue from acquisitions or divestitures (104) — Currency impacts (17) — Core Revenue $ 1,479 $ 1,298 14% Please refer to the last
Slide 14: Reconciliations of Core Revenue by Segment and Region
RECONCILIATIONS OF CORE REVENUE BY SEGMENT AND REGION (In millions) (Unaudited) PRELIMINARY Year-over-Year Revenue from acquisitions or Currency Revenue divestitures Adjustments Core Revenue YoY % YoY % Revenue by Segment Q1'26 Q1'25 Chg. Q1'26 Q1'26 Q1'26 Q1'25 Chg. Communications Solutions Group $
Slide 15: Revenue by End Markets
REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q1'26 Q1'25 Inc/(Dec) Aerospace, Defense and Government $ 366 $ 311 18% Commercial Communications 758 572 33% Electronic Industrial 476 415 15% Total Revenue $ 1,600 $ 1,298 23% Please refer to the last slide for details on the use
Slide 16: Gross Margin Reconciliation
GROSS MARGIN RECONCILIATION (In millions, except percentages) (Unaudited) PRELIMINARY Three months ended January 31, 2026 2025 Gross Profit, as reported $ 995 $ 820 Amortization of acquisition-related balances 51 19 Share-based compensation 15 11 Acquisition and integration costs 1 1 Restructuring a
Slide 17: Operating Margin Reconciliation
OPERATING MARGIN RECONCILIATION (In millions, except percentages) (Unaudited) PRELIMINARY Three months ended January 31, 2026 2025 Income from operations, as reported $ 248 $ 218 Amortization of acquisition-related balances 73 33 Share-based compensation 77 62 Acquisition and integration costs 29 28
Slide 18: Core Operating Margin Reconciliation
CORE OPERATING MARGIN RECONCILIATION (In millions, except percentages) (Unaudited) PRELIMINARY Three months ended January 31, 2026 2025 Non-GAAP income from operations $ 439 $ 354 Adjustments: Operating profit from acquisitions or divestitures (12) — Currency impacts 1 — Core Income from operations
Slide 19: Net Income and Diluted EPS Reconciliation
NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended January 31, 2026 2025 Net Diluted Net Diluted Income EPS Income EPS GAAP Net income $ 281 $ 1.63 $ 169 $ 0.97 Non-GAAP adjustments: Amortization of acquisition-related balances 7
Slide 20: Free Cash Flow
FREE CASH FLOW (In millions) (Unaudited) PRELIMINARY Three months ended January 31, 2026 2025 Net cash provided by operating activities $ 441 $ 378 Adjustments: Investments in property, plant and equipment (34) (32) Free cash flow $ 407 $ 346 Please refer to the last slide for details on the use of
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management uses both GAAP and non-GAAP financial measures to analyze and assess the overall performance of the business, to make operating decisions and to forecast and plan for future periods. We believe that our investors benefit from seeing our results “through the eye