Keysight Technologies stock drops despite record Q3 growth
Published on 09/15/2026 at 14:31 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Keysight Technologies, Inc. (ISIN US49338L1035) stock retreated sharply to USD 314.96 on September 14, 2026, leaving the high-flying test and measurement specialist around 16 percent below its 52-week peak of USD 374.96 reached on June 22, 2026, even as investors digest a record fiscal third quarter with robust growth and raised guidance.
Record Q3 2026 figures underpin the Keysight Technologies stock story
Per a fiscal third-quarter 2026 release dated August 18, 2026, Keysight Technologies reported revenue of USD 1.85 billion for the quarter ended July 31, 2026, up from USD 1.35 billion in the third quarter of 2025, representing growth of roughly 36 percent year over year according to Keysight Technologies.
In the same period, GAAP net income more than doubled to USD 397 million, or USD 2.30 per diluted share, compared with USD 191 million, or USD 1.10 per share, in the third quarter of 2025, highlighting a strong profitability expansion alongside revenue growth, as detailed by Keysight Technologies.
The company also achieved non-GAAP net income of USD 531 million, or USD 3.07 per share, versus USD 297 million, or USD 1.72 per share, a gain of about 79 percent in adjusted earnings, while free cash flow reached USD 403 million compared with USD 291 million a year earlier, underscoring strong cash generation according to Keysight Technologies.
Segment growth and guidance highlight demand in communications and industrial markets
Keysight’s Communications Solutions Group, which serves commercial communications as well as aerospace, defense, and government customers, delivered revenue of USD 1.35 billion in fiscal Q3 2026, up about 43 percent from USD 940 million in the prior-year period, with commercial communications revenue rising 56 percent and aerospace, defense, and government revenue increasing 14 percent year over year, according to Keysight Technologies.
The Electronic Industrial Solutions Group, which focuses on semiconductor, general electronics, automotive, and energy markets, generated revenue of USD 501 million in the same quarter, up 21 percent from USD 412 million a year earlier, reflecting broad-based strength across industrial and automotive testing applications per Keysight Technologies.
For the fourth fiscal quarter of 2026, management guided revenue to a range of USD 1.93 billion to USD 1.95 billion, with the midpoint implying approximately 37 percent year-over-year growth, and forecast non-GAAP earnings per share between USD 3.34 and USD 3.40 on around 172 million diluted shares outstanding, signaling expectations for continued double-digit expansion according to Keysight Technologies.
Short-term selling pressure hits Keysight Technologies stock after strong run
Despite these fundamentally strong figures, Keysight Technologies stock came under notable pressure on September 14, 2026, with the shares shedding 6.99 percent to close at USD 314.96, in an overall weak session for U.S. equities, leaving the stock 16 percent below the 52-week high of USD 374.96, as reported by MarketWatch.
A separate technical analysis overview noted that Keysight Technologies dropped about 4.59 percent in the latest session, with the stock trading below its 20-day and 50-day moving averages but remaining above the 200-day moving average, and highlighted near-term support around USD 316.25 and resistance near USD 325.32, suggesting short-term weakness set against a still intact longer-term uptrend according to Traders Union.
While the pullback has been sharp, several recent commentaries frame the decline as partly driven by profit-taking and broader volatility in technology and AI-related names after a strong year-to-date rally, rather than a deterioration in Keysight’s end-market demand, pointing investors toward the contrast between robust fundamentals and current price action in Keysight Technologies stock.
Keysight Technologies stock valuation and market capitalization context
Valuation-focused analysis from mid-September 2026 underlines that Keysight Technologies stock has delivered a year-to-date gain of around 55 percent and an approximately 84.7 percent rise over the past year, leaving the shares at USD 314.96 within a 52-week range of USD 158.79 to USD 374.96, and indicates that the current price sits meaningfully above some intrinsic value estimates, implying the stock may be considered significantly overvalued by certain models according to GuruFocus.
Market capitalization data compiled in September 2026 place Keysight around USD 55.0 billion, with the company’s market value up more than 55 percent since the start of 2026, reflecting both strong operational performance and a substantial rerating by the market, according to an overview on CompaniesMarketCap.
Against this backdrop, analyst and quantitative narratives diverge on Keysight Technologies stock: some models emphasize that the shares trade at elevated multiples versus historical norms, while others highlight strong growth, rising margins, and a sizable cash position of USD 2.62 billion as of July 31, 2026, as supportive factors for the long-term investment case, per the fiscal Q3 2026 materials from Keysight Technologies.
Closing view: Keysight Technologies stock after the latest pullback
As of September 14, 2026, Keysight Technologies stock closed at USD 314.96 on the New York Stock Exchange, down nearly 7 percent on the day and trading notably below short- and medium-term moving averages yet still well above its 200-day trend line, with a market capitalization around USD 55.0 billion and the shares 16 percent under the 52-week high, setting up a tension between short-term technical pressure and the company’s record fiscal Q3 results and strong guidance.
Keysight Technologies stock facts
- Company: Keysight Technologies, Inc.
- ISIN: US49338L1035
- Ticker: KEYS
- Trading venue: NYSE
- Price (as of September 14, 2026, 4:30): 314.96 USD
- Market capitalization: 55,000,000,000 USD (as of September 2026)
- Sector / Industry: Technology / Electronic measurement and test equipment
- Index membership: S&P 500
