What Happened?

Shares of electronic measurement provider Keysight (NYSE: KEYS) jumped 19.3% in the morning session after the company reported strong fourth-quarter financial results and provided an optimistic outlook for the first quarter that surpassed analyst expectations. 

For its fourth quarter, Keysight posted revenue of $1.6 billion, a 23.3% increase year on year, and non-GAAP earnings per share of $2.17. Both figures beat Wall Street estimates. However, the company’s forecast for the upcoming first quarter particularly fueled investor optimism. Keysight projected revenue to be around $1.7 billion, significantly higher than the consensus estimate of $1.50 billion. Similarly, its earnings per share guidance, with a midpoint of $2.30, was well above the expected $1.91. The strong results and forward guidance signaled accelerating business momentum.

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What Is The Market Telling Us

Keysight’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Keysight and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 7.1% on the news that the company reported better-than-expected third-quarter 2025 results and provided a strong forecast for the upcoming quarter. 

The company posted revenue of $1.42 billion and an adjusted EPS of $1.91, beating Wall Street’s expectations on both fronts. However, the key driver for the positive sentiment was its optimistic outlook. Management guided for fourth-quarter revenue of around $1.54 billion, which was significantly higher than analysts had projected. This strong guidance suggested healthy demand for its electronic measurement products, leading investors to overlook concerns about the decline in operating and free cash flow margins during the quarter.

Keysight is up 44.5% since the beginning of the year, and at $298.49 per share, has set a new 52-week high. Investors who bought $1,000 worth of Keysight’s shares 5 years ago would now be looking at an investment worth $2,078.

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