TLDR
- Keysight Technologies (KEYS) stock jumped 24% after beating Q1 earnings estimates
- Core orders grew 22% year-over-year in Q1, well above expectations
- EPS beat Wall Street consensus by 17 cents
- Management raised FY2026 adjusted EPS growth guidance from 10%+ to 20%+ YoY
- BofA upgraded KEYS to Buy, raising its price target from $195 to $340
Keysight Technologies (NYSE: KEYS) surged 24% on Tuesday after the company posted a strong first quarter and raised its full-year earnings outlook.
Core orders grew 22% year-over-year in Q1, which ended in January. That blew past analyst expectations of around 11% growth.
Revenue and earnings per share both beat Wall Street estimates. EPS came in 17 cents above consensus — a clean beat by any measure.
Keysight Technologies, Inc., KEYS
Management then did something that got everyone’s attention: they more than doubled their full-year guidance.
The company raised its FY2026 adjusted EPS growth target to more than 20% year-over-year, up from the prior outlook of more than 10%. That puts implied adjusted EPS at $8.59 or better for the year, above the $8.11 consensus estimate.
BofA analysts wasted little time responding.
They upgraded KEYS to Buy from Neutral, citing the broad-based nature of the order strength. The upgrade wasn’t a close call — BofA raised its price target from $195 to $340, a jump of $145.
BofA now applies a 33x multiple to its raised 2027 adjusted EPS estimate, a premium to the 31x peer average. The firm cited Keysight’s above-average margins and industry-leading market position as justification for the premium.
Susquehanna Also Raises Target
Susquehanna also updated its model following the results, raising its price target on KEYS to $300 from $225. The firm kept its Positive rating on the stock.
Susquehanna flagged Wireline revenue as a key driver, noting it has already overtaken Wireless. They expect Wireless to recover in the second half of 2026.
Order Strength Across the Board
What stood out to analysts wasn’t just the headline numbers — it was how broad the order growth was.
BofA specifically noted the strength was not concentrated in one area. Broad-based demand is generally a stronger signal than growth driven by a single segment.
The Q1 results cover the period ending January 2026.
With BofA’s new $340 target, KEYS would need to gain further ground from Tuesday’s elevated levels — but the market clearly liked what it heard.
Susquehanna’s $300 target and BofA’s $340 target both sit well above where the stock was trading before the report.
The stock’s 24% single-day move is one of the larger reactions to an earnings report seen in the sector recently.
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