Core Viewpoint - Keysight Technologies Inc. reported strong Q3 fiscal 2025 results, with both revenue and net income exceeding estimates, driven by growth in AI data-center markets and defense sectors [2][3][4]. 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 same quarter last year [3]. - 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 [3]. - Quarterly net sales increased to $1.35 billion from $1.22 billion year-over-year, exceeding guidance [4]. Revenue Breakdown - Communication Solutions Group (CSG) generated $940 million in revenues, an 11% increase from $847 million in the prior year, driven by demand for AI data-center network solutions [5]. - Electronic Industrial Solutions Group (EISG) revenues rose to $412 million from $370 million, supported by investments in AI-driven technologies [6]. - Region-wise, Asia-Pacific revenues were $569 million, up from $496 million, while revenues from the Americas increased by 13% to $566 million; European revenues decreased by 2% to $217 million [7]. Profitability Metrics - Non-GAAP gross profit was $864 million with gross margins of 63.9%, compared to $781 million and 64.1% in the prior year [8]. - Non-GAAP operating margin was 25%, up from 24.4% year-over-year; CSG's margin was 26.1%, while EISG's margin improved to 22.3% [8]. Cash Flow and Liquidity - 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 [9]. Future Outlook - For Q4 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]. - There has been an upward trend in estimates revisions for the stock, indicating positive investor sentiment [11][13]. Investment Scores - Keysight has a Growth Score of B and a Momentum Score of A, with an aggregate VGM Score of B, indicating a balanced investment profile [12].

Company Overview - Keysight Technologies, Inc. is based in Santa Rosa, California, and provides electronic design and test solutions across various industries, including energy, semiconductor, electronics, and defense [1] - The company has a market capitalization of $29.5 billion, categorizing it as a large-cap stock, which reflects its substantial size and influence in the scientific and technical instruments industry [2] Stock Performance - Keysight's stock reached a two-year high of $186.20 on February 19 and is currently trading 7.6% below that peak, with a nearly 6% gain over the past three months, which is significantly lower than the Nasdaq Composite's 13.4% increase during the same period [3] - Year-to-date, Keysight's stock has gained 7.1% and 15.1% over the past 52 weeks, while the Nasdaq Composite has surged by 15.7% in 2025 and 27% over the past year [4] Financial Results - In Q3, Keysight reported revenues of $1.4 billion, an 11.1% year-over-year increase, exceeding Street expectations by 2.9%. However, there was a contraction in adjusted net margin, resulting in a modest 8% growth in adjusted net income to $297 million [5] - The adjusted EPS of $1.72 surpassed consensus estimates significantly, and after an initial drop of nearly 3% following the Q3 results, the stock rebounded more than 5% in the subsequent trading sessions [6] Competitive Position - Compared to its peer Trimble Inc., Keysight has underperformed, with Trimble achieving 14.5% gains in 2025 and a 38.5% increase over the past 52 weeks [7]

Group 1 - Keysight Technologies will showcase data center infrastructure solutions for AI/ML applications at ECOC 2025 [1] - The event will take place from September 29 to October 1, 2025, at Bella Centre in Copenhagen, Denmark [1] - Keysight will present optical test innovations at their booth C2120 [1]

SANTA ROSA, Calif.--(BUSINESS WIRE)--Keysight Technologies, Inc. (NYSE: KEYS) introduces two new millimeter-wave frequency extender modules, the NA5305A Frequency Extender up to 170 GHz and NA5307A Frequency Extender up to 250 GHz, and the 85065A Precision Calibration Kit 0.5 mm. When used with Keysight's PNA/PNA-X Vector Network Analyzers (VNA) and the N5292A Test Set Controller, the new accessories enable engineers to achieve fully calibrated single-sweep broadband S-parameter measurements fr. ...

Core Insights - Keysight is a significant player in the design, emulation, and test solutions market, with over $5 billion in annual revenue primarily linked to customer R&D applications [1][2] - The company has successfully transitioned from a hardware-centric business model to a software-centric solutions provider, capitalizing on larger market opportunities [2] Company Strategy - Since becoming an independent public company, Keysight has focused on transforming its business model to enhance its software offerings [2] - The shift in investment strategy has allowed Keysight to better align with the evolving needs of its customers across various industries, including Aerospace & Defense (A&D), Communications, Automotive, and Industrial sectors [1][2]

Keysight (NYSE:KEYS) 2025 Conference September 08, 2025 01:50 PM ET Company ParticipantsNeil Dougherty - Executive VP & CFOSatish Dhanasekaran - Director, President & CEOConference Call ParticipantsMark Delaney - Analyst - US Autos & Industrial TechNoneThe following session is not open to the press. The following session is not open to the press.Satish DhanasekaranOkay.Mark DelaneyOkay. All right. Great. Thank you, everybody. Thank you, everybody, for joining us. My name is Mark Delaney, and I have the plea ...

Group 1 - Keysight will showcase innovations in radio frequency (RF) and millimeter-wave (mmWave) technologies [1] - The demonstration will cover applications across various industries, including IoT networks, 5G, and 6G [1]

Core Insights - The company has raised its growth expectations for fiscal year 2025, increasing from an initial estimate of 5% to 6% at the end of Q2, and further to 7% at the end of Q3, indicating a positive trend in performance [1] - Strong performance in the wireline sector has exceeded expectations, contributing significantly to the overall growth [1] - The semiconductor market has rebounded more robustly than anticipated, further supporting the company's improved growth outlook [1]

Summary of Keysight (KEYS) 2025 Conference Call Company Overview - **Company**: Keysight Technologies (KEYS) - **Date**: September 03, 2025 Key Industry Insights 1. Growth Expectations - Full year guidance for fiscal 2025 has been raised from 5% to 7% over two quarters, indicating stronger than expected performance driven by several factors [2][3][4] 2. Performance by Segment - **Wireline**: Strong growth, driven by AI and semiconductor markets, with expectations for continued momentum into FY 2026 [3][6] - **Wireless**: Initially expected to stabilize, but has shown unexpected growth, contributing significantly to overall company growth [3][4] - **Aerospace and Defense**: Anticipated strong performance due to increased U.S. defense budgets and commitments from NATO allies [7][36] - **Automotive**: Caution noted due to challenges in EV manufacturing, although there is investment in software-defined vehicles [7][9] 3. Technological Advancements - Transition to higher speeds in wireline technology (400G to 1.6T) is ongoing, with significant R&D activity in both 800G and early 1.6T developments [20][21] - AI-driven acceleration is propelling growth in wireline business, particularly among chipset manufacturers and data center interconnects [12][18] 4. Wireless Market Dynamics - The 5G market is transitioning, with ongoing R&D and a focus on non-terrestrial networks (satellite applications) [22][24][26] - Six G research is gaining traction, with expectations for commercialization by the end of the decade [62][66] Financial Performance 5. Software Business - Software now constitutes approximately 25% of the company's revenue, with a significant recurring revenue component [49] - The software business is expected to provide margin benefits and stability, with ongoing updates to keep pace with industry standards [50][51] 6. M&A Activity - Keysight is pursuing three pending acquisitions aimed at expanding capabilities in live wireless networks and precision GPS markets, with regulatory approvals in progress [52][54] - The acquisitions are expected to enhance the design engineering software portfolio and support growth in aerospace and defense sectors [55][56] Strategic Outlook 7. Capital Allocation - The company plans to maintain a balanced capital allocation strategy, focusing on integration of acquisitions while continuing to return capital to shareholders [57][58] 8. Market Positioning - Keysight has a broad and deep portfolio across various sectors, including aerospace, defense, and telecommunications, positioning it well for future growth [68][70] 9. R&D Investment - The company has consistently invested more in R&D than competitors, which is expected to support market share gains as industry trends evolve [70] Conclusion - Keysight Technologies is experiencing robust growth across multiple segments, driven by technological advancements and strategic investments. The company is well-positioned to capitalize on emerging opportunities in the wireline, wireless, and aerospace defense markets while maintaining a strong focus on software and R&D.

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]