Keysight Technologies forecasts high quarterly profit on AI data center demand

Keysight Technologies has issued financial forecasts exceeding market expectations, driven by a rapid expansion of artificial intelligence data centers. The California-based electronic equipment maker expects fourth-quarter adjusted profit to range between $3.34 and $3.40 per share, with revenue projected between $1.93 billion and $1.95 billion. This outlook surpasses analyst estimates of $2.70 per share and $1.81 billion in revenue.

The company’s communications solutions segment, which accounts for two-thirds of its total revenue, has seen significant growth. Driven by AI-fueled data center expansion, the segment’s third-quarter revenue rose 43%.

Recent fiscal performance also showed strong momentum, with total quarterly orders increasing 56 percent to $2.051 billion and net revenue expanding 31 percent year-over-year. Keysight maintains a significant intellectual property portfolio, including patents for data center congestion control, automated hardware testing, and LIDAR systems for autonomous vehicles.