Keysight Technologies (NYSE:KEYS) shares surged 16.35% to $285 in premarket trading on Tuesday after the electronic measurement equipment company issued second-quarter guidance that came in well above Wall Street expectations.
The company projected adjusted earnings per share and revenue for the second quarter ahead of analyst forecasts compiled by LSEG.
Keysight noted that its outlook does not factor in any potential effects stemming from last week’s U.S. Supreme Court decision striking down President Donald Trump’s IEEPA-based tariffs, nor any follow-up policy actions from Washington, D.C.
According to Morningstar, management has nearly doubled its fiscal 2026 organic growth outlook and now anticipates total reported growth of more than 20%, including roughly 7% contributed by acquisitions.
The research firm attributed the improving demand outlook to increased investment in AI-related infrastructure — particularly semiconductors and networking — alongside rising defense spending and modernization programs.
Following the announcement, at least three brokerages, including J.P. Morgan, Morgan Stanley and Barclays, raised their price targets on the stock.
As of Monday’s close, Keysight shares had gained 20.5% year to date, building on a 26.5% advance recorded in 2025.