Core Insights - Keysight Technologies is recognized as a leading entity in the electronic equipment manufacturing sector, particularly in communications, electronics, and semiconductors, with a price target of $208 set by Morgan Stanley, indicating a potential upside of 17.07% from its current price of $177.67 [1] Financial Performance - Keysight's fourth-quarter results indicate a positive trend, with a 14% increase in orders and revenue growth across all regions, showcasing a resurgence in business momentum [2] - The company reported earnings of $1.91 per share, surpassing the forecasted $1.83, and quarterly revenue reached $1.42 billion, exceeding the consensus estimate of $1.38 billion [4] Market Dynamics - The demand for AI-driven semiconductors and stabilization in industrial sectors are key growth drivers for Keysight, with optimistic projections for first-quarter revenue and profit expected to exceed Wall Street estimates [3] - Following the positive outlook, Keysight's shares experienced a 13% increase in after-market trading [3] Stock Performance - Currently, Keysight is trading at $177.67, reflecting a 2.87% increase for the day, with fluctuations between $173.36 and $180.04 during the trading session [5] - Over the past year, the stock reached a peak of $187.67 and a low of $121.43, with a market capitalization of approximately $30.53 billion [5]

Core Insights - Keysight Technologies reported strong fourth-quarter earnings, with earnings per share of $1.91, surpassing the analyst estimate of $1.83, and quarterly revenue of $1.42 billion, exceeding the consensus estimate of $1.38 billion [1][2] Financial Performance - The company experienced a positive fiscal year-end, with order momentum accelerating throughout the year, leading to full-year growth [2] - For the first quarter, Keysight expects adjusted earnings between $1.95 and $2.01 per share, compared to the analyst estimate of $1.83, and revenue between $1.53 billion and $1.55 billion, against an estimate of $1.42 billion [2] Stock Performance - Following the earnings announcement, Keysight shares increased by 8.6%, reaching $193.14 [2] Analyst Ratings and Price Targets - Susquehanna analyst Mehdi Hosseini maintained a Positive rating and raised the price target from $215 to $225 [5] - Barclays analyst Tim Long maintained an Overweight rating and increased the price target from $195 to $232 [5] - JP Morgan analyst Samik Chatterjee kept an Overweight rating and raised the price target from $200 to $207 [5] - Morgan Stanley analyst Meta Marshall maintained an Equal-Weight rating and increased the price target from $180 to $208 [5] - Wells Fargo analyst Aaron Rakers maintained an Overweight rating and boosted the price target from $190 to $225 [5]

Core Insights - Keysight Technologies reported strong fourth-quarter earnings, with earnings per share of $1.91, surpassing the analyst estimate of $1.83, and quarterly revenue of $1.42 billion, exceeding the consensus estimate of $1.38 billion [1][2] Financial Performance - The company experienced a positive fiscal year close, returning to full-year growth with accelerating order momentum [2] - For the first quarter, Keysight expects adjusted earnings between $1.95 and $2.01 per share, compared to the analyst estimate of $1.83, and revenue between $1.53 billion and $1.55 billion, against the estimate of $1.42 billion [2] Stock Performance - Following the earnings announcement, Keysight shares increased by 8.6%, reaching $193.14 [2] Analyst Ratings and Price Targets - Susquehanna analyst Mehdi Hosseini maintained a Positive rating and raised the price target from $215 to $225 [5] - Barclays analyst Tim Long maintained an Overweight rating and increased the price target from $195 to $232 [5] - JP Morgan analyst Samik Chatterjee maintained an Overweight rating and raised the price target from $200 to $207 [5] - Morgan Stanley analyst Meta Marshall maintained an Equal-Weight rating and increased the price target from $180 to $208 [5] - Wells Fargo analyst Aaron Rakers maintained an Overweight rating and boosted the price target from $190 to $225 [5]

Core Viewpoint - Keysight Technologies is demonstrating strong financial health and confidence in its stock value through a significant share buyback program and positive analyst ratings, indicating potential growth opportunities for investors [1][2][4][6]. Financial Performance - Keysight Technologies has a market capitalization of approximately $30.57 billion, a P/E ratio of 56.65, and a PEG ratio of 2.38, reflecting its valuation metrics [4]. - The company maintains a debt-to-equity ratio of 0.45, a current ratio of 3.59, and a quick ratio of 2.94, indicating strong liquidity and effective debt management [4][6]. Stock Performance - Following the announcement of a $1.5 billion share buyback program, KEYS stock increased by 3%, opening at $177.87 [3]. - The stock is currently priced at $177.67, reflecting an increase of 2.87% or $4.96, with fluctuations between a low of $173.36 and a high of $180.04 on the same day [5]. - Over the past year, KEYS has experienced volatility, trading between a low of $121.43 and a high of $187.67 [3]. Analyst Ratings - Barclays has maintained an "Overweight" rating for Keysight Technologies and raised its price target from $195 to $232, indicating confidence in the company's future performance [1][6].

Core Insights - Keysight Technologies Inc. (KEYS) reported strong fourth-quarter fiscal 2025 results, with both net income and revenues exceeding the Zacks Consensus Estimate, driven by growth in AI data-center, aerospace, defense, and government markets [1][9] Financial Performance - GAAP net income was $229 million or $1.33 per share, compared to a GAAP net loss of $73 million or $0.42 per share in the same quarter last year [2] - Non-GAAP net income for the quarter was $331 million or $1.91 per share, up from $288 million or $1.65 in the prior-year quarter, surpassing the Zacks Consensus Estimate by $0.06 [2] - Quarterly net sales increased to $1.42 billion from $1.29 billion year-over-year, exceeding guidance, with total orders rising 14% year-over-year to $1.53 billion [3][9] Segment Performance - The Communication Solutions Group (CSG) generated $990 million in revenues, an 11% increase from $894 million in the prior-year quarter, driven by demand for AI data-center network solutions and 5G technologies [4] - The Electronic Industrial Solutions Group (EISG) saw revenues rise to $429 million from $393 million, supported by investments in AI-driven technologies and growth in the semiconductor sector [5] Regional Performance - Asia-Pacific revenues reached $581 million, up from $508 million year-over-year, while revenues from the Americas also improved by 6% to $581 million [6] - European revenues increased by 12% to $257 million from $230 million in the prior-year quarter [6] Profitability Metrics - Non-GAAP gross profit was $912 million, with gross margins of 64.3%, compared to $829 million and 64.5% in the prior-year quarter [7] - Non-GAAP operating margin improved to 26.3% from 25.8% year-over-year, with CSG's margin at 26.7% and EISG's margin at 25.4%, reflecting a higher mix of software [7] Cash Flow and Liquidity - Keysight generated $225 million in cash from operating activities, down from $359 million a year ago, with $1.9 billion in cash and cash equivalents and $2.53 billion in long-term debt as of September 30, 2025 [10] Outlook - For the upcoming quarter, Keysight expects revenues between $1.53 billion and $1.55 billion, with non-GAAP earnings per share estimated between $1.95 and $2.01 [11]

Core Viewpoint - Keysight Technologies (KEYS) has shown moderate performance over the past year with a 4% gain despite facing challenges from reduced spending in the communications and automotive sectors [1] Company Performance - The company has effectively maintained its margins despite the pressures from the communications and automotive sectors [1]

Core Viewpoint - Keysight Technologies (KEYS) has shown moderate performance over the past year with a 4% gain, despite facing challenges from reduced spending in the communications and automotive sectors [1] Company Performance - The company has effectively maintained its margins despite the pressures from the communications and automotive sectors [1]

Core Insights - Keysight reported revenue of $1.42 billion for the quarter ended October 2025, reflecting a year-over-year increase of 10.3% and exceeding the Zacks Consensus Estimate of $1.39 billion by 2.07% [1] - Earnings per share (EPS) for the quarter was $1.91, up from $1.65 in the same quarter last year, surpassing the consensus EPS estimate of $1.85 by 3.24% [1] Revenue Breakdown - Communications Solutions Group revenue reached $990 million, exceeding the average estimate of $976.78 million by analysts, marking a 10.7% increase year-over-year [4] - Commercial Communications revenue was reported at $660 million, slightly below the average estimate of $660.85 million, with an 11.7% year-over-year growth [4] - Aerospace, Defense & Government revenue totaled $330 million, surpassing the estimated $315.94 million, representing an 8.9% increase compared to the previous year [4] - Electronic Industrial Solutions Group revenue was $429 million, exceeding the average estimate of $413.51 million, with a year-over-year change of 9.2% [4] Operational Performance - Income from operations for the Electronic Industrial Solutions Group was $109 million, significantly higher than the average estimate of $92.11 million [4] - Income from operations for the Communications Solutions Group was reported at $264 million, slightly above the estimated $256.94 million [4] Stock Performance - Keysight's shares have returned +1.9% over the past month, contrasting with a -1.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

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]