Keysight Technologies, Inc. stock research
FY2026 Q2
Keysight Technologies (KEYS) Gross Margin — Quarter Ended Apr 30, 2026
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved versus both periods, reflecting a larger proportion of revenue flowing through to gross profit.
Gross margin takeaway
Quarter ended Apr 30, 2026 · FY2026 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved versus both periods, reflecting a larger proportion of revenue flowing through to gross profit.
- The gross margin strengthened compared to both the immediately preceding quarter and the same quarter one year earlier, driven by a combination of higher revenue and lower cost of revenue relative to the prior quarter. The year-over-year improvement occurred despite higher cost of revenue, as revenue grew at a faster pace.
- Compared to the prior quarter, revenue was higher, gross profit was higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter last year, all three metrics—revenue, gross profit, and cost of revenue—were higher, with gross margin also improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.6%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$539.0M
Quarter-over-quarter change
+6.4 pts
Year-over-year change
+6.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 31, 2025 | $1.4B | $834.0M | $518.0M | 61.7% |
| Oct 31, 2025 | $1.4B | $869.0M | $550.0M | 61.2% |
| Jan 31, 2026 | $1.6B | $995.0M | $605.0M | 62.2% |
| Apr 30, 2026 | $1.7B | $1.2B | $539.0M | 68.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2026
+6.4 pts
Year-over-year change
Apr 30, 2025
+6.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened compared to both the immediately preceding quarter and the same quarter one year earlier, driven by a combination of higher revenue and lower cost of revenue relative to the prior quarter. The year-over-year improvement occurred despite higher cost of revenue, as revenue grew at a faster pace.
Compared to the prior quarter, revenue was higher, gross profit was higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter last year, all three metrics—revenue, gross profit, and cost of revenue—were higher, with gross margin also improving.
Monitor the trajectory of cost of revenue, which declined sequentially but increased year-over-year, as its movement relative to revenue will continue to influence gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Keysight Technologies, Inc. (KEYS) | 68.6% |