Tech Company Keysight Surpasses Profit Expectations Amid AI Data Center Boom

Electronic testing equipment manufacturer Keysight Technologies reported better-than-expected quarterly results and issued optimistic forecasts for the coming quarter. The California-based company's strong performance is being driven by increased demand from data centers expanding to handle artificial intelligence workloads.

Shares of Keysight Technologies jumped more than 15% in after-hours trading Monday after the electronic testing equipment manufacturer projected second-quarter earnings that exceeded Wall Street predictions.

The company, which specializes in electronic design, testing and simulation software, continues to capitalize on robust demand from data centers that are scaling up operations to handle artificial intelligence computing needs.

Based in Santa Rosa, California, Keysight anticipates second-quarter revenue between $1.69 billion and $1.71 billion, surpassing analysts’ consensus estimate of $1.51 billion compiled by LSEG.

The company projects adjusted earnings per share will fall between $2.27 and $2.33 for the upcoming quarter, well above the $1.91 per share that analysts had predicted.

The company noted that its projections do not account for possible effects from the February 20 U.S. Supreme Court decision that overturned President Donald Trump’s tariffs imposed under the International Emergency Economic Powers Act, or any follow-up measures by the current administration.

Keysight also exceeded Wall Street expectations for both revenue and earnings in its first quarter that concluded January 31, powered by robust results from its communications solutions division.

Revenue from that division climbed 27% to reach $1.12 billion during the quarter, fueled by ongoing investments in AI-centered data center infrastructure, satellite and space-based network applications, and military equipment upgrades.

Total quarterly revenue reached $1.6 billion, topping analyst projections of $1.54 billion.

The company’s adjusted first-quarter earnings per share hit $2.17, exceeding the $2 per share estimate.