Core Insights - Keysight (KEYS) reported quarterly earnings of $1.91 per share, exceeding the Zacks Consensus Estimate of $1.85 per share, and up from $1.65 per share a year ago, representing an earnings surprise of +3.24% [1] - The company achieved revenues of $1.42 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.07%, and an increase from $1.29 billion year-over-year [2] - Keysight has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +2.38%, with actual earnings of $1.72 per share compared to an expected $1.68 per share [1] - The current consensus EPS estimate for the upcoming quarter is $1.86, with projected revenues of $1.4 billion, and for the current fiscal year, the EPS estimate is $7.78 on revenues of $5.79 billion [7] Stock Performance and Outlook - Keysight shares have increased approximately 7.5% since the beginning of the year, while the S&P 500 has gained 12.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [6] Industry Context - The Electronics - Measuring Instruments industry, to which Keysight belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Keysight's stock performance [5]

Financial Data and Key Metrics Changes - In Q4 2025, revenue reached $1,419 million, a 10% increase year-over-year, or 9% on a core basis [18] - Orders grew to $1,533 million, up 14% year-over-year, or 12% on a core basis [19] - Full year revenue was $5,375 million, an 8% increase as reported, or 7% on a core basis [19] - Earnings per share (EPS) for Q4 was $1.91, a 16% increase year-over-year, while full year EPS was $7.16, up 14% [19] Business Segment Data and Key Metrics Changes - The Communication Solutions Group (CSG) generated Q4 revenue of $990 million, up 11% reported, or 9% core [20] - The Electronic Industrial Solutions Group (EISG) reported revenue of $429 million, a 9% increase reported, or 8% core [20] - CSG achieved a gross margin of 66% and an operating margin of 27%, while EISG had a gross margin of 60% and an operating margin of 25% [20] Market Data and Key Metrics Changes - The aerospace, defense, and government sector saw record orders with an 8% revenue increase for the year [11] - Wireless orders and revenue grew high single digits for the full year, driven by advancements in 5G and early 6G research [10] - Wireline orders and revenue grew double digits both in Q4 and for the full year, setting a new record [7] Company Strategy and Development Direction - Keysight is focusing on software-centric solutions and has made strategic acquisitions to enhance its capabilities [6] - The company is well-positioned to capitalize on trends in AI, 6G, and defense modernization, aligning its solutions with customer priorities [5][6] - A new $1.5 billion share repurchase program has been authorized to support capital return to shareholders [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in wireless and wireline segments, driven by stabilization in 5G and advancements in AI infrastructure [28] - The company anticipates revenue growth in FY 2026 to be at or above the high end of its long-term target of 5%-7% [22] - Management highlighted a robust sales pipeline and backlog entering FY 2026, with expectations for continued strong performance [22] Other Important Information - Keysight achieved record free cash flow of $1.3 billion in FY 2025, with significant investments in R&D and acquisitions [7] - The company is working to realize over $100 million in synergies from recent acquisitions, expected to be accretive to earnings within 12 months post-close [22] Q&A Session Summary Question: How does the company see wireless trending in FY 2026? - Management is optimistic about wireless growth, driven by stabilization in 5G and investments in advanced technologies [28] Question: Will there be additional growth or acceleration in the adoption of 1.6 Terabit wireline? - The company believes its first-to-market solutions will continue to drive momentum in wireline, particularly with advancements in AI [30] Question: What is the expected cadence of revenue contribution from recent acquisitions? - Approximately 30% of the acquisition revenue is expected in Q1, with the remainder distributed evenly across the following quarters [61] Question: What are the expectations for EPS growth despite mild dilution from acquisitions? - Management indicated that the dilution would be low single digits, with expectations for EPS growth at or above 10% [66] Question: How does the company view the growth potential in the automotive sector? - The automotive sector is stabilizing, with growth seen in software-defined vehicles and electric vehicle solutions [106]

Financial Performance and Key Metrics - Keysight reported Q4 revenue of $1,419 million, a 10% increase year-over-year, and orders grew 14% to $1,533 million [18][19] - Full year revenue reached $5,375 million, up 8% as reported, with EPS increasing 14% to $7.16 [19][20] - Gross margin for Q4 was 64%, with an operating margin of 26% [19] Business Segment Performance - The Communication Solutions Group (CSG) generated Q4 revenue of $990 million, up 11%, driven by strong wireline and wireless growth [20] - The Electronic Industrial Solutions Group (EISG) reported revenue of $429 million, a 9% increase, with growth in semiconductor and general electronics [20][21] - Software and services accounted for approximately 37% of total revenue, with annual recurring revenue at 29% [20] Market Trends and Key Indicators - Strong demand in wireline driven by AI infrastructure buildouts and technology upgrades, with double-digit growth in orders and revenue [8][20] - Wireless segment saw high single-digit growth, supported by advancements in 5G and early 6G research [10][20] - Aerospace, defense, and government sectors achieved record orders, with an 8% revenue increase, reflecting strong customer engagement in defense modernization [11][20] Company Strategy and Industry Positioning - Keysight's strategy focuses on software-centric solutions and strategic acquisitions to enhance capabilities, including recent acquisitions of Spirent and Synopsys Optical Solutions Group [6][7] - The company is well-positioned to capitalize on trends in AI, 6G, and semiconductor advancements, with a robust pipeline of sales opportunities [5][17] - Keysight aims to achieve over $100 million in synergies from recent acquisitions while maintaining critical investments in R&D [22][23] Management Commentary on Business Environment and Outlook - Management expressed optimism about growth in wireless and wireline segments, anticipating continued demand driven by technological advancements [28][30] - The company expects Q1 2026 revenue to be between $1,530 million and $1,550 million, representing a 19% year-over-year growth at the midpoint [21][22] - Keysight's leadership remains confident in the fundamentals of its business model and long-term shareholder value creation [17][24] Other Important Information - Keysight achieved record free cash flow of $1.3 billion in FY25, with $375 million returned to shareholders through buybacks [7][21] - The company has authorized an additional $1.5 billion share repurchase program [7] Q&A Session Summary Question: Wireless segment outlook for FY2026 - Management is optimistic about wireless growth, driven by stabilization in 5G and investments in advanced technologies [26][28] Question: Growth potential from 1.6 TB per second wireline - The company is well-positioned to continue momentum in wireline, leveraging first-to-market solutions and technological complexity [29][30] Question: Order acceleration details - The significant acceleration in orders is attributed to broad strength across both CSG and EISG businesses, with a robust pipeline for future growth [34][36] Question: M&A revenue contribution cadence - Approximately 30% of the revenue from acquisitions is expected in Q1, with the remainder distributed evenly across the following quarters [61] Question: EPS growth despite dilution from acquisitions - Management indicated that the expected dilution from acquisitions is mild, with low single-digit percentage impacts [66][68] Question: Revenue growth expectations across different segments - AI is expected to be a significant growth driver, with wireline and wireless segments anticipated to grow in line with long-term targets [73][75]

Financial Performance and Key Metrics - Keysight reported fourth quarter revenue of $1,419 million, exceeding guidance and reflecting a 10% increase year-over-year, or 9% on a core basis [16] - Orders for the fourth quarter reached $1,533 million, up 14% on a reported basis or 12% on a core basis [17] - Full year revenue was $5,375 million, an 8% increase as reported, or 7% on a core basis, with earnings per share (EPS) of $7.16, up 14% [17][18] Business Segment Performance - The Communication Solutions Group (CSG) generated fourth quarter revenue of $990 million, up 11% on a reported basis, driven by strong wireline and wireless performance [18] - The Electronic Industrial Solutions Group (EISG) reported revenue of $429 million, a 9% increase on a reported basis, with growth in semiconductor and general electronics [18] - Software and services accounted for approximately 37% of total revenue, with annual recurring revenue at 29% [18] Market Performance - Wireline orders and revenue grew double digits in Q4 and for the full year, driven by AI infrastructure buildouts and technology upgrades [6][10] - Wireless orders and revenue grew high single digits for the full year, supported by ongoing standards evolution and early 6G research [9] - Aerospace, defense, and government sectors saw record orders, with revenue increasing by 8% for the year, reflecting strong customer engagement in defense modernization [10][11] Company Strategy and Industry Competition - Keysight's strategy focuses on software-centric solutions and recent acquisitions to enhance capabilities in AI, 6G, and semiconductor markets [4][5] - The company is well-positioned to capture growth opportunities in emerging technologies, including AI and defense, with a robust sales pipeline [4][10] - Keysight aims to realize over $100 million in synergies from recent acquisitions, which are expected to be accretive to earnings within 12 months post-close [20][21] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about wireless growth in FY2026, driven by stabilization in 5G and advancements in next-gen connectivity [24] - The company anticipates revenue growth in FY2026 to be at or above the high end of its long-term target of 5%-7%, excluding acquisitions [20][22] - Keysight's operating model is expected to generate strong free cash flow, allowing for continued investment in R&D and shareholder returns [5][19] Other Important Information - Keysight achieved record free cash flow of $1.3 billion in FY2025, with $375 million returned to shareholders through buybacks [5][19] - The company has authorized an additional $1.5 billion share repurchase program to support ongoing capital return [5] Q&A Session Summary Question: How does the company see wireless trending in FY2026? - Management is optimistic about wireless growth, driven by stabilization in 5G and investments in advanced technologies [24] Question: What is the expected growth from the adoption of 1.6 TB per second wireline? - The company believes that higher technological complexity will drive growth in wireline, with a strong focus on first-to-market solutions [25] Question: Can you elaborate on the order acceleration and its drivers? - The revenue outperformance was attributed to broad order strength across both CSG and EISG, with a robust pipeline for future growth [27][28] Question: What are the expectations for M&A revenue contributions? - Approximately 30% of the revenue from acquisitions is expected in Q1, with the remainder distributed evenly across the following quarters [39] Question: How does the company plan to achieve operating margin targets? - Management indicated that achieving the 31%-32% operating margin target is further out, with current margins at 26% [47] Question: What is the outlook for software and services revenue growth? - The company expects continued growth in software and services, particularly with the integration of recent acquisitions [56]

Group 1 - Keysight Technologies, an electronic equipment maker, has forecasted first-quarter revenue and profit that exceed Wall Street estimates, leading to a more than 13% increase in its shares during after-market trading [1]

Core Viewpoint - Keysight Technologies, Inc. reported strong fourth-quarter earnings, surpassing analyst expectations for both earnings per share and revenue, leading to a significant increase in stock price [1][2][4]. Financial Performance - Quarterly earnings were reported at $1.91 per share, exceeding the analyst estimate of $1.83 [2]. - Quarterly revenue reached $1.42 billion, surpassing the analyst consensus estimate of $1.38 billion [2]. Segment Revenue - Communications Solutions Group (CSG) generated revenue of $990 million in the fourth quarter, reflecting an 11% increase year-over-year, driven by investments in AI data center infrastructure and defense modernization [5]. - Electronic Industrial Solutions Group (EISG) reported revenue of $429 million in the fourth quarter, up 9% year-over-year, attributed to growth in general electronics and semiconductor solutions [5]. Future Outlook - Keysight anticipates first-quarter adjusted earnings between $1.95 and $2.01 per share, compared to the $1.83 analyst estimate, and revenue expectations of $1.53 billion to $1.55 billion, exceeding the $1.42 billion estimate [4].

Financial Performance - Q4 2025 revenue reached $1.4 billion, a 10% year-over-year increase, with earnings per share at $1.91, up 16% year-over-year[4] - FY25 revenue grew by 8%, with Communications Solutions Group (CSG) up 9% year-over-year and Electronic Industrial Solutions Group (EISG) up 6% year-over-year[4] - The company generated a record free cash flow of $1.3 billion in FY25[4] - Q1 2026 guidance projects revenue between $1.53 billion and $1.55 billion, and non-GAAP earnings per share between $1.95 and $2.01[36] Orders and Backlog - Q4 2025 orders increased by 14% year-over-year to $1.5 billion, also growing 14% quarter-over-quarter[4] - FY25 orders totaled $5.5 billion, an 8% year-over-year increase, driven by record orders in aerospace, defense, government, and wireline sectors[4] - The company's backlog stands at $2.7 billion, positioning it for a strong start to FY26[4] Segment Performance - Communications Solutions Group (CSG) revenue in Q4 2025 was $990 million, an 11% year-over-year increase[17] - Electronic Industrial Solutions Group (EISG) revenue in Q4 2025 was $429 million, a 9% year-over-year increase[22] - Commercial Communications revenue grew 12% year-over-year to $660 million[20, 29] Strategic Investments - The company invested $1.7 billion in R&D and acquisitions in FY25[4] - A new $1.5 billion share repurchase authorization reflects confidence in long-term growth and value creation[4] - Acquisitions of Spirent, Optical Solutions Group, and PowerArtist expand the served addressable market by approximately $1.25 billion and grow the overall software mix by roughly 300 basis points[4]

Financial Performance - Keysight reported fourth quarter revenue of $1.42 billion, a 10.2% increase from $1.29 billion in the same quarter last year[5] - GAAP net income for the fourth quarter was $229 million, or $1.33 per share, compared to a net loss of $73 million, or $0.42 per share, in Q4 2024[5] - Non-GAAP net income for the fourth quarter was $331 million, or $1.91 per share, up from $288 million, or $1.65 per share, in Q4 2024[5] - For fiscal year 2025, total revenue reached $5.37 billion, a 7.8% increase from $4.98 billion in fiscal year 2024[5] - Net income for the year ended October 31, 2025, was $846 million, a 38% increase from $614 million in 2024[20] - Total revenue for the fiscal year 2025 was $5,375 million, an 8% increase compared to $4,979 million in 2024[32] - Non-GAAP net income for the year ended October 31, 2025, was $1,240 million, up from $1,096 million in 2024, reflecting a 13% increase[23] - The company reported a diluted EPS of $4.89 for the year ended October 31, 2025, compared to $3.51 in 2024, representing a 39% increase[23] Cash Flow and Liquidity - Cash flow from operations for the fourth quarter was $225 million, down from $359 million in the previous year[5] - As of October 31, 2025, cash and cash equivalents totaled $1.87 billion, an increase from $1.80 billion a year earlier[18] - Operating cash flow increased to $1,409 million in 2025, up from $1,052 million in 2024, representing a 34% growth[20] - Free cash flow for the year ended October 31, 2025, was $1,282 million, compared to $905 million in 2024, marking a 42% increase[29] - Cash, cash equivalents, and restricted cash at the end of the year were $1,890 million, up from $1,814 million at the beginning of the year[20] Segment Performance - The Communications Solutions Group (CSG) reported revenue of $990 million in Q4, an 11% increase year-over-year[4] - The Electronic Industrial Solutions Group (EISG) reported revenue of $429 million in Q4, a 9% increase year-over-year[4] - The Communications Solutions Group reported revenue of $990 million in Q4 2025, an 11% increase from $894 million in Q4 2024[26] - The Electronic Industrial Solutions Group achieved revenue of $429 million in Q4 2025, a 9% increase from $393 million in Q4 2024[27] Shareholder Returns - The company announced a new $1.5 billion share repurchase program, effective immediately[6] Tax and Non-GAAP Measures - The company utilized a non-GAAP effective tax rate of 14% for both the three months and year ended October 31, 2025[23] - The company excludes acquisition-related items from non-GAAP financial measures to provide a clearer evaluation of current operating performance[38] - Share-based compensation expense is excluded from non-GAAP financial measures due to its variability based on share price and equity awards granted[38] - Incremental expenses related to restructuring initiatives are excluded as they are not considered normal, recurring operating expenses[38] Future Guidance - Keysight's first fiscal quarter 2026 revenue is expected to be between $1.53 billion and $1.55 billion[7]

Core Insights - Keysight Technologies, Inc. reported strong financial results for the fourth fiscal quarter and the fiscal year ending October 31, 2025, indicating a return to full-year growth with accelerating order momentum [1] Financial Performance - The company experienced an outstanding quarter, reflecting leadership across the markets served and sustained demand [1] - Specific financial metrics were not detailed in the provided text, but the overall performance suggests positive trends in revenue and orders [1]

Earnings Reports Overview - The current earnings season is nearing its end, with notable companies reporting during the holiday-shortened week [1] - Retail investors are particularly focused on earnings reports from major companies [1] Company-Specific Earnings Reports - WeRide Inc. (NASDAQ:WRD) and LexinFintech Holdings Ltd. (NASDAQ:LX) reported before the market opened on November 24, both showing better-than-expected results, leading to stock price increases [2] - Zoom Communications Inc. (NASDAQ:ZM) is expected to report third-quarter results after the market closes on November 24, with analysts predicting earnings of $1.44 per share and revenue of $1.21 billion [3] - Alibaba Group Holding Ltd. (NYSE:BABA) will release its Q2 earnings report before the market opens on November 25, with expectations of adjusted earnings of 81 cents per share and revenue of $34.43 billion [3] - Retailers Kohl's Corp. (NYSE:KSS) and Best Buy Co. Inc. (NYSE:BBY) are anticipated to provide insights into consumer behavior with their reports on November 25 [4] - Cleanspark Inc. (NASDAQ:CLSK), Dell Technologies Inc. (NYSE:DELL), and Zscaler Inc. (NASDAQ:ZS) are set to report after the market closes on November 25 [5] - Li Auto Inc. (NASDAQ:LI) and EHang Holdings Ltd. (NASDAQ:EH) will report their results before the market opens on November 26, alongside Deere & Co. (NYSE:DE), which has consistently beaten analyst expectations for 12 consecutive quarters [6] Market Schedule - U.S. stock markets will be closed on November 27 for the Thanksgiving holiday [8] - The stock market will have an early closure at 1 p.m. ET on November 28 [9]