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Call sheet · Q3'26

Keysight Technologies (KEYS)

Q3'26 earnings call · held August 18, 2026 · compared with the Q2'26 call · management-credibility review
8/12
Disclosure score
1 high, 3 medium, 2 low flags
Financial quality
Bottom line
Orders topped $2B for a second consecutive quarter, but supply remains the near-term constraint. Management did not refresh the prior $500M-$600M AI-wireline figure, saying it had expanded. Free cash flow declined from $472M to $403M sequentially. Operating cash flow of $437M still exceeded GAAP net income of $397M; comparing it with $531M of non-GAAP earnings is a different test. Next quarter, look for quantified AI demand and a working-capital explanation for the cash-flow movement.

The 30-second version

  • The AI dollar figure just went dark
  • Cash flow eased sequentially, but still exceeded GAAP earnings
  • ADG deceleration got the brush-off, not the data

What changed this quarter

MetricQ2'26Q3'26Change
Revenue$1.72B, +31% reported$1.846B, +36% reported/31% core+500bps reported acceleration
Non-GAAP diluted EPS$2.87 non-GAAP ($2.58 ex-tariff)$3.07beat high end of own guide range
Non-GAAP net income$497M$531M+6.8% QoQ
Orders$2.05B, +56% reported$2.091B, +56% reported/52% coresecond straight $2B+ quarter, rate flat
CSG revenue$1.23B, +35%/+27% core$1.345B, +43%/36% coreaccelerating
EISG revenue$486M, +24%$501M, +21%decelerating 300bps
ADG revenue$373M, +24%$339M, +14%sequential $ decline + growth deceleration
Software/services % of revenue~36%~33%-300bps mix dilution
ARR % of mix27%24%-300bps mix dilution
Cash flow from operations$501M record$437M-12.8% sequentially; above $397M GAAP net income

Accountability tracked

5 new promises made4 narrative shifts flagged5 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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