Keysight posts 37% revenue growth on AI demand, with strong orders and margins boosting outlook to 2028

Keysight Technologies reported a 37% revenue increase and 79% EPS growth in Q3, driven by rising AI-related demand. Orders surpassed $2 billion, supported by a strong backlog and book-to-bill ratio, indicating sustained revenue growth through at least 2028. Operating margins reached 33.2%, exceeding long-term targets, while recurring revenue and R&D investments strengthen the company's growth prospects. Despite a recent share price rally, the analyst maintains a "Hold" rating but sees potential for shares to reach around $375 as growth continues.