On March 10, 2026 Keysight Technologies announced the launch of its AresONE 1600GE, a purpose‑built 1.6‑terabit Ethernet AI workload emulation platform that enables customers to validate next‑generation AI fabrics and accelerate the development of high‑speed interconnects for data‑center and hyperscale AI workloads.
In its Q1 2026 earnings, Keysight reported revenue of $1.6 billion, up 23% year‑over‑year, and earnings per share of $2.17, a 19% increase and a $0.17 beat over the $2.00 consensus. The revenue growth was driven by strong demand in AI infrastructure and semiconductor testing, while the EPS beat was largely attributable to disciplined cost management and an improving mix toward higher‑margin AI platform contracts.
Gross margin for the quarter reached 66.7%, a slight improvement over the prior year, reflecting pricing power in the AI platform segment and operational leverage as revenue scales. Operating margin expanded to 27.4%, up from 26.5% in the same period a year earlier, driven by the higher contribution from the new AI platform and efficient allocation of capital to research and development.
Management raised its fiscal 2026 guidance, signaling confidence in continued demand for AI infrastructure solutions. The company reiterated its focus on expanding the AresONE portfolio and integrating it with the PathWave design‑to‑test ecosystem to deepen customer engagement and drive recurring revenue.
Satish Dhanasekaran, Keysight’s President and CEO, said in the Q1 2026 earnings call, "Keysight had a strong start to the fiscal year with outstanding results that exceeded our expectations. The investments we have made over the last 3 years are enabling us to capitalize on continued momentum in our markets and deliver value."
The AresONE 1600GE launch complements Keysight’s existing PathWave ecosystem, creating a deeper, earlier customer engagement that can drive recurring revenue and higher gross margins. By providing end‑to‑end validation of AI traffic patterns, the platform positions Keysight as a critical partner for hyperscalers and data‑center operators building out AI capabilities, reinforcing the company’s strategic focus on AI infrastructure as a structural growth driver.
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