Q3 2025 Financial Performance - Q3 revenue reached $1.352 billion, an increase of 11% year-over-year[5, 6, 11] - Earnings per share (EPS) stood at $1.72, reflecting a 9% year-over-year growth[5, 6] - Core operating margin increased by 110 basis points year-over-year to 25.4%[5] - YTD free cash flow amounted to $1.1 billion[5] Segment and Regional Revenue - Communications Solutions Group (CSG) revenue was $940 million, up 11% year-over-year[21] - Electronic Industrial Solutions Group (EISG) revenue was $412 million, also up 11% year-over-year[26, 33] - Americas region revenue grew by 13% year-over-year[15, 39] - Asia Pacific region revenue increased by 15% year-over-year[19, 39] Forward Guidance and Outlook - The company raised its full-year outlook, expecting revenue growth of 7% and non-GAAP EPS growth of approximately 13% for FY25[5] - Q4 2025 revenue is guided to be between $1.370 billion and $1.390 billion, with non-GAAP EPS between $1.79 and $1.85[34] Strategic Initiatives and Tariff Mitigation - The company is progressing with regulatory clearances for the Spirent acquisition, expecting closure in Q4 FY25[5] - The company is actioning a multi-pronged approach to reduce the impact of tariffs, with an incremental gross impact of tariff increases announced on August 1 being $75 million on an annualized basis[5]

Financial Performance - Keysight Technologies reported third quarter revenue of $1.35 billion, a 11% increase from $1.22 billion in the same quarter of 2024[5] - GAAP net income for the third quarter was $191 million, or $1.10 per share, compared to $389 million, or $2.22 per share, in the third quarter of 2024[5] - Non-GAAP net income was $297 million, or $1.72 per share, up from $275 million, or $1.57 per share, in the third quarter of 2024[5] - Total revenue for Q3 2025 was $1,352 million, an increase of 11% from $1,217 million in Q3 2024[30] - Non-GAAP net income for the nine months ended July 31, 2025, was $909 million, up from $808 million in the same period last year, reflecting a 12% increase[22] - The company reported a diluted EPS of $3.56 for the nine months ended July 31, 2025, compared to $3.92 in the same period of 2024[22] Segment Performance - The Communications Solutions Group (CSG) generated $940 million in revenue, reflecting an 11% year-over-year growth, with 13% growth in commercial communications[3] - The Electronic Industrial Solutions Group (EISG) reported revenue of $412 million, also up 11% from the prior year, driven by growth in semiconductor and automotive sectors[3] - The Communications Solutions Group reported revenue of $940 million in Q3 2025, an 11% increase from $847 million in Q3 2024[25] - The Electronic Industrial Solutions Group also saw revenue growth of 11%, reaching $412 million in Q3 2025, compared to $370 million in Q3 2024[26] Cash Flow and Assets - Cash flow from operations was $322 million, compared to $255 million in the same period last year, while free cash flow increased to $291 million from $222 million[5] - Operating cash flow increased significantly to $1,184 million, up 71% from $693 million in the prior year[19] - Free cash flow for the nine months ended July 31, 2025, was $1,094 million, compared to $577 million in the same period last year, representing an increase of 90%[28] - Cash, cash equivalents, and restricted cash at the end of the period totaled $3,397 million, up from $1,649 million at the end of the previous year[19] - As of July 31, 2025, Keysight's cash, cash equivalents, and restricted cash totaled $3.40 billion[5] - Total assets increased to $10.651 billion as of July 31, 2025, up from $9.269 billion on October 31, 2024[17] Future Outlook - Keysight expects fourth quarter revenue to be between $1.370 billion and $1.390 billion, with non-GAAP earnings per share projected to be between $1.79 and $1.85[4] - For fiscal year 2025, revenue growth is anticipated to be approximately 7%, with non-GAAP earnings per share growth expected to be around 13%[4] - The company plans to continue investing in property, plant, and equipment, with $90 million spent in the nine months ended July 31, 2025[19] Year-over-Year Comparison - For the nine months ended July 31, 2025, net income was $617 million, a decrease of 10% compared to $687 million for the same period in 2024[19]

Group 1 - The author is a self-taught value investor with two decades of investing experience, focusing on value investing through case studies in the ASEAN and US regions [1] - The author has served as a Board member of a Malaysia listed company for several decades, providing a unique perspective on investment opportunities [1] - A value investing book titled "Do you really want to master value investing?" is available on Amazon, indicating the author's commitment to educating others in the field [1] Group 2 - The article does not provide specific investment recommendations or advice, emphasizing that past performance is not indicative of future results [2] - The views expressed in the article may not reflect those of Seeking Alpha as a whole, highlighting the independent nature of the author's analysis [2] - The author has no current or planned investment positions in any of the companies mentioned, ensuring an unbiased perspective [2]

Core Viewpoint - Keysight Technologies, Inc. is expected to report third-quarter fiscal 2025 results on August 19, with anticipated revenue growth driven by various market strengths and collaborations [1][11]. Group 1: Revenue Expectations - Keysight is projected to report revenues of $1.31 billion for the third quarter, reflecting a year-over-year increase from $1.22 billion [7][11]. - The Communications Solutions Group segment is estimated to generate $909.4 million, indicating a 7.4% year-over-year growth [6]. - Revenues from the Electronic Industrial Solutions Group are expected to reach $401.3 million [6]. Group 2: Collaborations and Innovations - Keysight's collaboration with AMD involves the use of its solutions for testing electrical compliance for pre-production AMD server CPUs, enhancing demand for its products [3]. - The partnership with Synopsis aims to streamline the migration of analog and RF circuits to new process nodes, which is expected to accelerate time to market and increase demand for Keysight's solutions [4]. - Keysight's deployment of the Quantum Control System in Fujitsu's 256-qubit superconducting quantum computer and the delivery of a large commercial quantum control system to a Japanese institute highlight its advancements in Quantum Computing [5]. Group 3: Earnings Insights - The consensus estimate for adjusted earnings per share is $1.68, an increase from $1.57 reported a year ago [7][11]. - Keysight's Earnings ESP is 0.00%, indicating no definitive prediction for an earnings beat in the upcoming quarter [9].

Core Insights - Analysts project that Keysight (KEYS) will report quarterly earnings of $1.68 per share, reflecting a 7% year-over-year increase [1] - Revenue is expected to reach $1.31 billion, marking a 7.9% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised 0.8% lower over the last 30 days, indicating a reevaluation by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and short-term stock performance [3] Revenue Projections - Revenue from the Communications Solutions Group is estimated at $917.23 million, an increase of 8.3% year over year [5] - Revenue from Commercial Communications is projected at $617.75 million, reflecting an 8% increase from the prior-year quarter [5] - Revenue from Aerospace, Defense & Government is estimated at $299.47 million, suggesting an 8.9% year-over-year increase [6] - Revenue from the Electronic Industrial Solutions Group is expected to reach $396.45 million, indicating a 7.2% increase year over year [6] Income from Operations - Income from operations for the Electronic Industrial Solutions Group is projected at $88.33 million, up from $74.00 million a year ago [7] - Income from operations for the Communications Solutions Group is expected to be $253.54 million, compared to $223.00 million in the same quarter last year [7] Stock Performance - Over the past month, Keysight shares have returned +6.2%, outperforming the Zacks S&P 500 composite's +3.5% change [8] - Keysight holds a Zacks Rank 3 (Hold), suggesting performance alignment with the overall market in the upcoming period [8]

Group 1 - The stock of Keysight Technologies, Inc. (KEYS) is experiencing significant attention due to high implied volatility in the options market, particularly for the Aug 15, 2025 $270.00 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a substantial move in Keysight Technologies' stock, potentially due to an upcoming event [2] - Keysight Technologies currently holds a Zacks Rank 3 (Hold) in the Electronics - Measuring Instruments industry, which is in the top 24% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while three analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from $1.72 to $1.68 per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility, aiming for the underlying stock to not move as much as expected at expiration [4]

Core Viewpoint - Keysight's ML Optimizer offers a revolutionary solution for semiconductor parameter extraction, addressing the complexities and inefficiencies of traditional optimization methods [2][29]. Group 1: Challenges in Parameter Extraction - The complexity of semiconductor device models has increased, making parameter extraction a significant challenge due to the large number of interrelated parameters [6][11]. - Traditional optimization algorithms, such as Newton-Raphson and Levenberg-Marquardt, often get trapped in local optima, leading to suboptimal extraction results [7][9]. Group 2: Introduction of ML Optimizer - Keysight introduced the ML Optimizer, which utilizes machine learning techniques to dynamically learn the optimization space, allowing for simultaneous optimization of over 40 parameters and multiple target plots [12][13]. - The ML Optimizer is designed to be robust against noise and does not rely on gradient information, making it more effective in non-convex spaces [12][13]. Group 3: Practical Applications and Benefits - In practical applications, the ML Optimizer demonstrated its efficiency by achieving good fitting for a diode model in approximately 300 trials, regardless of initial conditions [16]. - For the GaN HEMT model, the ML Optimizer completed parameter extraction in under 6000 trials within minutes, showcasing its speed and effectiveness [17]. - The optimizer enhances convergence and robustness through an integrated cost function, allowing it to handle complex models like BSIM4 and ASM-HEMT [18][19]. Group 4: Summary and Future Outlook - The ML Optimizer significantly simplifies the parameter extraction process, reducing modeling time from several days to just hours while improving fitting quality and consistency [29]. - The tool was showcased at IC-CAP 2025, with a recorded webinar available for further insights and demonstrations [23].

Core Viewpoint - Keysight's shares have declined by approximately 1.4% since the last earnings report, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1]. Estimates Movement - Estimates for Keysight have trended downward over the past month, indicating a negative shift in expectations [2]. VGM Scores - Keysight currently holds an average Growth Score of C, a Momentum Score of F, and a Value Score of C, placing it in the middle 20% for the value investment strategy. The overall aggregate VGM Score is D, which is relevant for investors not focused on a single strategy [3]. Outlook - The downward trend in estimates suggests a negative outlook for Keysight, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4].

Core Viewpoint - The article discusses the challenges in semiconductor parameter extraction due to the complexity of device models and the limitations of traditional optimization algorithms, introducing Keysight's ML Optimizer as a revolutionary solution to enhance efficiency and accuracy in this process [1][4]. Group 1: Challenges in Semiconductor Parameter Extraction - The complexity of semiconductor device models has made parameter extraction increasingly challenging, with traditional optimization algorithms often getting stuck in local optima due to unclear gradient changes [1]. - The presence of numerous interrelated parameters in modern semiconductor models leads to inefficiencies in traditional methods, requiring engineers to break down the extraction process into lengthy sub-steps, which can take days or even weeks [1]. Group 2: Introduction of ML Optimizer - Keysight has launched the ML Optimizer, a machine learning-based global optimizer that simplifies the parameter extraction process by synchronously handling vast amounts of data in a single step, reducing the extraction time from days to just hours [2][4]. - The ML Optimizer excels in navigating non-convex parameter spaces, utilizing advanced machine learning algorithms to find global optima more accurately, thereby improving the precision of parameter extraction and the consistency of overall fitting [4]. Group 3: Live Demonstration and Applications - A live demonstration is scheduled to showcase the ML Optimizer's effectiveness in various device modeling tasks, including diodes, GaN HEMTs, MOSFETs, and BJTs, with interactive elements and prizes for participants [4][6]. - The event will feature experts from Keysight, including application engineers and product managers, who will discuss the application of artificial neural networks and the ML Optimizer in device modeling [8][11].

Table of Contents FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. FOR THE QUARTERLY PERIOD ENDED APRIL 30, 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 ju ...