Episode Details

Keysight Technologies (KEYS) Q3 FY2026 — Keysight furnished fiscal Q3 2026 results on an 8-K accepted 16:09:53 ET on Tuesday August 18 (EDGAR filing-index page) - an AFTER-THE-CLOSE print, so Wednesday Aug 19 is the reaction session and the last settled one. Shares closed USD319.45 against USD341.00, DOWN 6.32 pct, the 22nd worst of 2,964 sessions since November 2014, on 3,875,294 shares, 3.78x the 20-session median. But the SESSION BEFORE, which ended nine minutes before the filing, was itself DOWN 5.58 pct and ranks 23rd - roughly 48 pct of the two-day 11.55 pct fall pre-dates the filing. Keysight Technologies (NYSE: KEYS) sells design, emulation and test solutions to engineers building communications, semiconductor, automotive, aerospace and AI infrastructure products. Spun out of Agilent in November 2014, it reports under US GAAP in US dollars on a fiscal year ending 31 October, serves about 40,000 end customers a year and employed roughly 16,500 people at 30 April 2026. Satish Dhanasekaran is chief executive. Its revenue is a LEADING indicator: engineers buy validation gear during design, years before the equipment it validates ships. THE CALL: HOLD (3/5, MEDIUM - A LEADING INDICATOR RUNNING HOT, AND FAIRLY PAID FOR IT) — base-case value ~$306.67 vs ~$319.45 today. KEY METRICS: - Q3 FY2026 revenue USD1.846B, up 36.5 pct on USD1.352B and beating a USD1.746B estimate by 5.7 pct; orders USD2.091B, up 56.0 pct, above two billion for a second straight quarter. GAAP diluted EPS USD2.30; non-GAAP diluted EPS USD3.07 against USD1.72 and a USD2.48 bar, a 23.8 pct beat. Segment operating margin 33.2 pct against 25.0 pct, above the company's own 31-32 pct long-term range. Free cash flow USD403M. - The lead: book-to-bill 1.13x against 0.99x a year ago, and 1.12x across nine months, leaving USD624M of orders booked and not yet shipped on top of a USD2.697B backlog. Core orders grew 52 pct against 56 pct reported, so acquisitions and currency are worth 4 points. The first 6G standard is targeted for March 2029. The 10-K expects most backlog to convert within six months, so visibility is about two quarters. - The counterweight: 83.2 pct of April-quarter revenue was recognised at a point in time against 80.9 pct a year earlier; software and services fell to about 33 pct of revenue from 40 pct and recurring revenue is 24 pct; deferred revenue rose 8.3 pct while nine-month revenue rose 30.5 pct; contracted revenue beyond twelve months is USD660M. Revenue FELL 8.9 pct in fiscal 2024 and fiscal 2025 finished below fiscal 2023. What to watch: The Q3 FY2026 8-K accepted 16:09:53 ET on 18 August 2026 and its Exhibit 99.1, read against the Form 10-Q for the quarter ended 30 April 2026 and the Form 10-K for the year ended 31 October 2025. Orders of USD2,091M exceeded revenue of USD1,846M - a 1.13x book-to-bill against 0.99x a year earlier - while that 10-K expects most backlog to become revenue within SIX months. Spirent closed 15 October 2025, so it is in this quarter and not in the comparison. Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.