Stock Track | Keysight Plunges Over 6% in Pre-Market Despite Strong Q1 Results on Cautious Outlook

Stock Track
26 Feb

Keysight Technologies Inc. (KEYS) stock plummeted over 6% in pre-market trading on Wednesday, despite the company reporting robust fiscal first-quarter 2025 results that surpassed estimates on both the top and bottom lines. The sell-off appears to be driven by Keysight's cautious outlook for the remainder of the year, citing macroeconomic uncertainty and potential impacts from policy changes in the United States.

During the earnings call, Keysight's management highlighted several positive factors, including growth in the Communications Solutions Group driven by robust demand for wireline and AI-related products, as well as stabilization in the wireless business. However, the company also flagged areas of concern:

  • Softness in the automotive and electric vehicle (EV) battery testing market due to muted activity in manufacturing and EV battery development.
  • Mixed demand across end markets in the Electronic Industrial Solutions Group, with semiconductor strength offset by weakness in other areas like general electronics.
  • Uncertainty stemming from potential US policy actions, which could impact the overall macro environment.

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