Feb 23 (Reuters) – Electronic equipment maker Keysight Technologies forecast second-quarter profit ahead of Wall Street estimates on Monday, sending its shares up more than 15% in after-market trading.
Keysight, which offers electronic design, testing and simulation software, has benefited from sustained demand from data centers as they expand to support AI workloads.
The Santa Rosa, California-based company expects second-quarter revenue in the range of $1.69 billion to $1.71 billion, ahead of analysts’ average estimate of $1.51 billion, according to data compiled by LSEG.
Adjusted earnings per share for the quarter are forecast at $2.27 to $2.33, compared with estimates of $1.91 per share.
However, the company said its outlook doesn’t include any potential impact from the U.S. Supreme Court ruling that struck down President Donald Trump’s IEEPA-based tariffs on February 20, or subsequent actions by the U.S. administration.
Keysight also beat Wall Street revenue and profit estimates for the first quarter ended January 31, helped by strong performance in its communications solutions unit.
The unit’s revenue rose 27% to $1.12 billion in the quarter, driven by continued investments in AI-focused data center infrastructure, non-terrestrial network applications and defense modernization.
The company reported quarterly revenue of $1.6 billion, above estimates of $1.54 billion.
First-quarter adjusted profit per share came in at $2.17, beating estimates of $2 per share.
(Reporting by Parth Chandna; Editing by Jonathan Ananda)
Comments