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]

Keysight (KEYS) came out with quarterly earnings of $1.72 per share, beating the Zacks Consensus Estimate of $1.68 per share. This compares to earnings of $1.57 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +2.38%. A quarter ago, it was expected that this electronic measurement technology company would post earnings of $1.64 per share when it actually produced earnings of $1.7, delivering a surprise of +3.66%. Over the las ...

Financial Data and Key Metrics Changes - Keysight reported a revenue increase of 11% year over year to $1.4 billion and earnings per share of $1.72, exceeding guidance [6][21] - Orders increased by 7%, with growth across both the Communication Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) segments [6][21] - Gross margin was reported at 64%, with operating expenses of $526 million and an operating margin of 25%, reflecting a 60 basis point increase year over year [21] Business Segment Data and Key Metrics Changes - The Communication Solutions Group generated revenue of $940 million, up 11% year over year, with commercial communications revenue of $644 million, also up 13% [23] - The Electronic Industrial Solutions Group reported revenue of $412 million, an increase of 11% year over year, with growth across automotive, energy, semiconductor, and general electronics [23] - Software and services accounted for approximately 36% of total revenue, with annual recurring revenue at 28% [24] Market Data and Key Metrics Changes - The aerospace, defense, and government sectors showed robust demand due to elevated defense spending globally, particularly in the U.S. and Europe [11][12] - The wireless business remained stable, with momentum in non-terrestrial networks and continued R&D activity in 5G Advanced contributing to steady demand [10] - The semiconductor business experienced double-digit growth, driven by demand for wafer test solutions and advanced node technologies [17][92] Company Strategy and Development Direction - Keysight is capitalizing on opportunities in the AI ecosystem, focusing on advanced physical layer solutions and silicon photonics capabilities to enhance R&D workflows [8][9] - The company is engaged in early 6G research and shaping standards for its implementation, collaborating with industry leaders to drive innovation [11][86] - Keysight's strategy includes mitigating tariff impacts through supply chain optimization and pricing actions, while maintaining operational flexibility to invest and adapt [22][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, noting that orders have accelerated and are slightly better than initial expectations [30][31] - The company anticipates continued growth in the aerospace and defense sectors, supported by robust backlogs and government budgets [55] - Despite challenges in the automotive sector, management remains optimistic about long-term growth driven by AI and other technological advancements [32][44] Other Important Information - Keysight generated cash flow from operations of $322 million and free cash flow of $291 million in Q3, with year-to-date free cash flow at $1.1 billion [25] - The company repurchased approximately 300,000 shares at an average price of $164, totaling $50 million [25] - The pending acquisition of Spirent is expected to close in the fiscal fourth quarter, with regulatory reviews progressing [25][80] Q&A Session Summary Question: Can you help investors understand your view of the end markets now? - Management noted strong order growth and positive customer activity despite geopolitical challenges, with AI and aerospace defense showing momentum [30][31] Question: What is supporting the revenue outlook into Q4? - Management indicated that timing of large deals impacted Q3 performance, but they expect more normal sequential seasonality in Q4 [34][35] Question: How should we think about the long-term growth rate? - Management suggested that while they initially expected low-end growth, recent performance has been better than expected, indicating bullish sentiment for fiscal 2026 [39][40] Question: What is the impact of tariffs on your business? - Management confirmed that tariffs are being mitigated through various strategies, and they expect to fully address the tariff impacts in the coming quarters [52][53] Question: Can you provide insights on the aerospace and defense market? - Management expressed confidence in ongoing programs and robust backlogs, with expectations for continued growth driven by government budgets [54][55] Question: What is the outlook for the semiconductor business? - Management highlighted strong demand for wafer test solutions and advanced technologies, indicating favorable growth prospects [92] Question: How is the mix between R&D and production testing evolving? - Management noted a shift towards more manufacturing exposure while still maintaining a strong R&D focus, benefiting from supply chain improvements [93][96]

Financial Data and Key Metrics Changes - Keysight reported a revenue increase of 11% year over year to $1.4 billion and earnings per share of $1.72, exceeding guidance [5][20] - Orders increased by 7%, with growth across both the Communication Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) segments [5][20] - Gross margin was reported at 64%, with operating margin at 25%, reflecting a 60 basis point increase year over year [20] Business Segment Data and Key Metrics Changes - CSG generated revenue of $940 million, up 11% year over year, with commercial communications revenue of $644 million, also up 13% [22] - EISG revenue reached $412 million, an 11% increase year over year, with growth across automotive, energy, semiconductor, and general electronics [22] - CSG delivered a gross margin of 67% and an operating margin of 26%, while EISG had a gross margin of 57% and an operating margin of 22% [22] Market Data and Key Metrics Changes - The aerospace, defense, and government sectors saw robust demand due to elevated defense spending globally, particularly in the U.S. and Europe [11][12] - The wireless business remained stable, with momentum in non-terrestrial networks and continued R&D activity in 5G Advanced [10] - Demand in the automotive sector improved sequentially, with stable year-over-year performance [15] Company Strategy and Development Direction - Keysight is capitalizing on the ongoing AI momentum and investing in advanced physical layer solutions and silicon photonics capabilities [6][7] - The company is focused on leading the industry into the next generation of innovation, particularly in 6G research and development [10][11] - Keysight's strategy includes enhancing collaboration with customers and leveraging a solid pipeline of opportunities [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving trade and tariff environment while maintaining healthy margins and strong free cash flow [19] - The demand environment remains resilient despite macroeconomic uncertainties, leading to an upward revision of the full-year growth outlook [25] - Management noted that while some end markets are recovering, challenges remain in sectors like automotive [29] Other Important Information - Keysight's cash flow from operations was $322 million, with free cash flow of $291 million for the quarter [23] - The company repurchased approximately 300,000 shares at an average price of $164, totaling $50 million [23] - The pending acquisition of Spirent is expected to close in the fiscal fourth quarter, with regulatory reviews progressing [23][24] Q&A Session Summary Question: Can you help investors understand your view of the end markets now? - Management noted strong order growth and positive customer activity despite geopolitical challenges, indicating a better-than-expected performance [28][29] Question: What is supporting the revenue outlook into Q4? - Management highlighted the timing of large deals and expected more normal sequential seasonality in orders compared to revenue [31][32] Question: How should we think about the long-term growth rate? - Management indicated a bullish outlook for fiscal 2026, with a focus on executing Q4 and navigating tariff impacts [38] Question: What is the contribution of AI to Keysight's story? - Management emphasized that AI is driving demand across multiple end markets, particularly in wireline, with expectations for continued growth [40][41] Question: Can you outline the tariff impacts? - Management clarified that tariffs are expected to increase exposure by approximately $75 million annually, with mitigation strategies in place [48][51] Question: What is the outlook for the aerospace and defense market? - Management expressed confidence in ongoing demand due to robust backlogs and government budgets, with a steady growth trajectory expected [52][54] Question: How is the semiconductor business performing? - Management noted strong growth in the semiconductor business, driven by advanced nodes and increased customer interest in silicon photonics [90][91] Question: What is the impact of tariffs on orders? - Management stated that there has been no material pull-in of orders due to tariff changes, and demand profiles remain stable [104][105]

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]

Exhibit 99.1 Keysight Technologies Reports Third Quarter 2025 Results Strong execution drives above guidance results, full-year outlook improved SANTA ROSA, Calif., August 19, 2025 - Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the third fiscal quarter ended July 31, 2025. "Keysight delivered strong results this quarter, exceeding the high end of our guidance for both revenue and earnings per share. We are executing our strategy and capitalizing on the opportunities in our e ...

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].