Question-and-Answer SessionBut maybe I'll kick off, Neil, with you. Just maybe for folks, just kind of level set on your last earnings call, full year guidance was kind of at the higher end of your long-term average. So it would be great to talk about what were some of the contributing factors, what's working in driving sort of that better-than-expected performance?Neil DoughertyExecutive VP & CFO Yes, absolutely. It's nice. We've been able to take up our growth expectation for our fiscal '25 here 2 quarter ...

Keysight (KEYS) 2025 Conference September 03, 2025 12:50 PM ET Company ParticipantsNeil Dougherty - Executive VP & CFOKailash Narayanan - SVP & President of Communications Solutions GroupConference Call ParticipantsAtif Malik - U.S. Specialty Semiconductors AnalystAtif MalikFor, for joining us for the, the Keysight fireside chat. I'm joined by Kailesh and Neil from Keysight. We will, do a couple questions here, and then we'll take questions from the audience if, if folks have them. But maybe I'll kick off, ...

Core Insights - Keysight Technologies (KEYS) demonstrated a total revenue of $1.35 billion for the quarter ending July 2025, reflecting an 11.1% increase year-over-year [4] - The company's international revenue performance is crucial for understanding its financial resilience and growth prospects [2][9] International Revenue Performance - Asia Pacific region generated $569 million, accounting for 42.1% of total revenue, surpassing Wall Street's expectation of $529.87 million by 7.39% [5] - Europe contributed $217 million, representing 16.1% of total revenue, falling short of the expected $239.41 million by 9.36% [6] Future Revenue Projections - Analysts project Keysight's revenue for the ongoing fiscal quarter to reach $1.38 billion, a 7.2% increase from the previous year, with Asia Pacific and Europe expected to contribute $550.63 million (39.9%) and $249.66 million (18.1%) respectively [7] - For the full year, total revenue is anticipated to be $5.32 billion, marking a 6.7% increase, with contributions from Asia Pacific and Europe projected at $2.14 billion (40.3%) and $971.07 million (18.3%) respectively [8] Market Dynamics - The reliance on international markets provides both opportunities and challenges, necessitating close monitoring of revenue trends to accurately forecast future performance [9][10] - The interconnected global economy and geopolitical factors significantly influence the company's ability to navigate international markets [2][3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. FOR THE QUARTERLY PERIOD ENDED JULY 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 001-36334 KEYSIGHT TECHNOLOGIES, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) (State or other jur ...

Summary of Keysight Technologies (KEYS) Conference Call Company Overview - **Company**: Keysight Technologies - **Industry**: Test and measurement equipment, transitioning towards software solutions - **Key Markets**: Commercial communications, aerospace defense, industrial (automotive), semiconductor, and general electronics [5][6] Core Insights and Arguments Financial Performance - **Q3 Results**: Keysight reported a sales growth increase to 7% for fiscal year 2025, up from an initial forecast of 5% [8][10] - **Revenue Composition**: Approximately 40% of revenues now come from software and services, with a shift towards software continuing [7] - **EPS Growth**: Despite tariff headwinds, Keysight has managed to increase EPS growth expectations [13] Market Dynamics - **End Market Recovery**: The company noted a cyclical downturn in 2024 but observed recovery in various end markets, particularly wireline and aerospace defense [9][11] - **AI Influence**: Significant growth in wireline business attributed to AI investments, with expectations for continued growth in FY '26 and beyond [17][18] - **Wireless Business**: Although still larger than wireline, the gap is closing; AI is influencing test product development in wireless networks [22][23] Tariff Impact - **Tariff Costs**: Keysight anticipates a quarterly tariff headwind of approximately $40 million due to two rounds of tariff announcements [14][16] - **Mitigation Strategies**: The company has implemented cost actions and operational efficiencies to offset tariff impacts, with plans to fully offset the April tariffs by Q1 and August tariffs by Q2 [15][16] Aerospace and Defense - **Increased Spending**: There is a positive outlook for aerospace and defense due to increased budgets from NATO allies and bipartisan support for defense technology investments [39][40] - **Long-term Opportunities**: The company expects significant opportunities in defense technology, particularly in communications and signal operations [40][41] Automotive Sector - **Transition to EVs**: Keysight's EV business is seen as derisked, with opportunities in software-defined vehicles and autonomous driving technologies [42][44] - **Global Positioning**: Despite China's advancements, Keysight believes there will be ample opportunities for competition and growth in the automotive sector [47] Semiconductor and General Electronics - **AI-Driven Demand**: The semiconductor business is experiencing increased demand linked to AI, particularly in high bandwidth memory and smaller process architectures [49][50] China Market Dynamics - **Geopolitical Challenges**: Ongoing trade sanctions have created headwinds, but demand has shifted to Southeast Asia, resulting in overall growth in the broader Asia region [51] Margin Outlook - **Operating Model**: Keysight aims for sustained growth of 5% to 7% with a target of 40% operating leverage, expecting to continue increasing profit margins despite tariff impacts [52] Additional Important Insights - **Acquisition of Spyrin**: Keysight is awaiting regulatory approval for the acquisition, which is expected to enhance its capabilities in precision location and network monitoring [33][34][36] - **Unique Portfolio**: Keysight's comprehensive set of tools across physical and protocol layers positions it uniquely in the marketplace, allowing for better customer solutions [30][31] This summary encapsulates the key points discussed during the conference call, highlighting the company's performance, market dynamics, and strategic outlook.

Group 1: Security Evaluation and Certification - Keysight Technologies has completed the first PSA Certified Level 4 security evaluation on Silicon Labs' Series 3 Secure Vault integrated into the SixG301 wireless SoC, marking a significant milestone in enhancing security assurance for connected devices amid rising cyber threats [1][10] - The PSA Certified Level 4 certification focuses on testing the resilience of key security components such as Root of Trust (RoT) and secure elements (SE), which are crucial for safeguarding data, firmware, and functionality throughout the device's lifecycle [2][4] - Keysight, as an authorized PSA Certified Test Lab, conducted the evaluation through in-depth design reviews, vulnerability assessments, and advanced attack simulations, ensuring the product's capability to withstand sophisticated cyberattacks [3][10] Group 2: Market Growth and Demand - The rapid expansion of the Internet of Things (IoT) is driving strong demand for advanced electronic testing equipment, contributing to robust order growth for Keysight [6][7] - Keysight's 5G portfolio has seen significant growth, with a recorded CAGR of over 60% in 5G orders over the past three years, supported by heavy infrastructure investments and successful trials [8] - The company is well-positioned to capitalize on growth opportunities in various sectors, including automotive, energy, aerospace, defense, and healthcare, as electronics-based testing equipment gains traction [7][9] Group 3: Financial Performance - Keysight reported strong third-quarter fiscal 2025 results, with both revenue and earnings exceeding the Zacks Consensus Estimate, driven by strength in the AI data-center market and aerospace and defense sectors [11] - For Q4 fiscal 2025, Keysight expects revenues in the range of $1.37 billion to $1.39 billion, with non-GAAP earnings per share estimated between $1.79 and $1.85 [10][11] - The company's shares have gained 3.6% over the past year, outperforming the Zacks Electronics - Measuring Instruments industry's growth of 1% [12]

Financial Performance - Keysight Technologies reported third-quarter earnings of $1.72 per share, exceeding the analyst consensus estimate of $1.67 per share [1] - The company achieved quarterly sales of $1.352 billion, surpassing the analyst consensus estimate of $1.318 billion [1] Future Outlook - For the fourth quarter, Keysight expects revenue to be in the range of $1.370 billion to $1.390 billion [2] - Non-GAAP earnings per share for the fourth quarter are projected to be between $1.79 and $1.85 [2] Management Commentary - Keysight's President and CEO, Satish Dhanasekaran, stated that the company delivered strong results, exceeding the high end of guidance for both revenue and earnings per share [3] - The company is raising its outlook for the full year, citing solid demand and strong customer engagements [3] Stock Performance - Following the earnings announcement, Keysight Technologies shares fell 3.8% to trade at $157.20 [3] Analyst Ratings - B of A Securities analyst David Ridley-Lane maintained a Neutral rating on Keysight and raised the price target from $175 to $179 [9] - Barclays analyst Tim Long maintained an Overweight rating but lowered the price target from $200 to $195 [9]

Core Insights - Keysight Technologies, Inc. (KEYS) reported strong third-quarter fiscal 2025 results, with both net income and revenues exceeding the Zacks Consensus Estimate, driven by growth in the AI data-center market and aerospace, defense, and government sectors [1][2][3] Financial Performance - Net income on a GAAP basis was $191 million or $1.10 per share, down from $389 million or $2.22 per share in the year-ago quarter. Non-GAAP net income was $297 million or $1.72 per share, compared to $275 million or $1.57 in the prior-year quarter, surpassing the Zacks Consensus Estimate by 4 cents [2] - Quarterly net sales increased to $1.35 billion from $1.22 billion year-over-year, exceeding guidance and the Zacks Consensus Estimate by $38 million. Total orders rose 7% year-over-year to $1.34 billion [3][8] Segment Performance - The Communication Solutions Group (CSG) generated $940 million in revenues, an 11% increase from $847 million in the prior-year quarter, driven by demand for AI data-center network solutions and applications [4] - The Electronic Industrial Solutions Group (EISG) saw revenues rise to $412 million from $370 million, supported by investments in AI-driven technologies and growth in the semiconductor vertical [5] Regional Performance - Asia-Pacific revenues reached $569 million, up from $496 million year-over-year. Revenues from the Americas increased by 13% to $566 million, while European revenues were $217 million, down 2% from the previous year [6] Profitability Metrics - Non-GAAP gross profit totaled $864 million with gross margins of 63.9%, compared to $781 million and 64.1% in the year-ago quarter. Non-GAAP operating margin improved to 25% from 24.4% [7] Cash Flow and Outlook - Keysight generated $322 million in cash from operating activities, up from $255 million a year ago. As of July 31, 2025, the company had $2.63 billion in cash and cash equivalents and $2.53 billion in long-term debt [9] - For the fourth quarter of fiscal 2025, Keysight expects revenues between $1.37 billion and $1.39 billion, with non-GAAP earnings per share estimated between $1.79 and $1.85 [10]

美股周三早盘，是德科技（Keysight Technologies，KEYS）股价大幅下跌6.3%。尽管该公司将全年营收 和每股收益增长预期分别上调至7%和13%，但未能提振股价上行。 来源：视频滚动新闻 ...

Core Insights - Keysight reported revenue of $1.35 billion for the quarter ended July 2025, reflecting an 11.1% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.31 billion by 2.92% [1] - Earnings per share (EPS) for the quarter was $1.72, up from $1.57 in the same quarter last year, also exceeding the consensus EPS estimate of $1.68 by 2.38% [1] Revenue Breakdown - Communications Solutions Group generated $940 million, exceeding the average analyst estimate of $917.23 million, marking an 11% year-over-year increase [4] - Commercial Communications revenue reached $644 million, surpassing the average estimate of $617.75 million, with a year-over-year growth of 12.6% [4] - Aerospace, Defense & Government revenue was $296 million, slightly below the estimated $299.47 million, but still showing a 7.6% increase compared to the previous year [4] - Electronic Industrial Solutions Group reported $412 million, exceeding the average estimate of $396.45 million, representing an 11.4% year-over-year change [4] Operational Performance - Income from operations for the Electronic Industrial Solutions Group was $92 million, surpassing the average estimate of $88.33 million [4] - Income from operations for the Communications Solutions Group was $246 million, which was below the average estimate of $253.54 million [4] Stock Performance - Keysight's shares returned +0.9% over the past month, while the Zacks S&P 500 composite increased by +2.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]