Keysight Technologies(KEYS) - 2025 Q4 - Annual Results

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]