By Emily Dattilo

Shares of Keysight Technologies were falling Wednesday after the test-equipment maker beat quarterly earnings estimates but issued light guidance.

Keysight stock fell 6.9% to $160.33 and was on track for its largest daily percentage decrease since May, according to Dow Jones Market Data. It also the worst performer Wednesday in the S&P 500.

For its fiscal first quarter ended Jan. 31, the company reported adjusted earnings of $1.82 per share, beating Wall Street's call for $1.69, according to FactSet. Revenue of $1.3 billion was above the consensus estimate of $1.28 billion.

"Keysight delivered strong first-quarter results, reflecting year-over-year growth in revenues and orders," said CEO Satish Dhanasekaran in a press release. "The demand environment remains consistent with our view of a gradual recovery in 2025."

For its fiscal second quarter, the company forecasts revenue between $1.27 billion and $1.29 billion and adjusted earnings between $1.61 and $1.67 a share. Analysts expect revenue of $1.27 billion and earnings of $1.59.

Susquehanna analysts Mehdi Hosseini and Bastien Faucon-Morin weighed in on the quarter. The team cut their price target to $185 from $195 but reiterated a Positive rating.

"Overall, to get to prior EPS peak of >$8 (from FY23) would require KEYS to be 'firing on all cylinders', which we think would require clear catalyst for stronger wireless, smartphones and auto," the analysts wrote.

The analysts believe the second half of this year is unclear and faces some temporary headwinds related to the Trump administration transition.

Write to Emily Dattilo at emily.dattilo@dowjones.com

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February 26, 2025 10:41 ET (15:41 GMT)

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