Financial Data and Key Metrics Changes - Keysight reported revenue of $1.3 billion and earnings per share of $1.7, exceeding the high end of guidance, marking the second consecutive quarter of revenue growth [5][18] - Orders grew 8% year over year and 4% sequentially to $1.3 billion, indicating a solid demand environment [5][18] - Gross margin was reported at 65%, with operating margin increasing by 100 basis points to 25% year over year [18] Business Segment Data and Key Metrics Changes - The Communications Solutions Group (CSG) generated revenue of $913 million, up 9% on both reported and core basis, driven by strong demand in wireline and wireless sectors [21] - Aerospace, Defense and Government revenue increased by 9% to $300 million, reflecting strong order growth in the U.S. and Europe [21] - The Electronics Industrial Solutions Group (EISG) saw revenue return to growth at $393 million, a 5% increase, with semiconductor and general electronics growth offsetting declines in automotive [21] Market Data and Key Metrics Changes - Orders in the aerospace and defense sector grew, driven by investments in defense modernization in the U.S., Europe, and Asia [11][12] - The demand environment in Asia was strong, particularly in commercial communications and semiconductor sectors, although automotive demand in China remained weak [92] Company Strategy and Development Direction - Keysight is focused on long-term investments aligned with technology trends, emphasizing a diversified global supply chain with minimal exposure to China [6][24] - The company is pursuing a balanced return of capital while investing for long-term growth, having returned over $1.7 billion to investors through share repurchases [6][7] - Keysight's strategy includes expanding its software and services segment, which now accounts for approximately 36% of revenue, with a focus on simulation and virtual prototyping [70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in market leadership and the strength of the operating model despite macroeconomic uncertainties [6][25] - The company raised its full-year revenue growth expectations to the midpoint of its 5% to 7% long-term target, anticipating a strong Q3 based on a solid backlog [25] - Management noted that while tariffs pose risks, they have not seen material adverse effects on demand and are actively working to mitigate tariff impacts [24][25] Other Important Information - Keysight's cash flow from operations was strong at $484 million, with free cash flow of $457 million [22] - The company has a backlog of $2.4 billion entering Q3, indicating a solid scheduled shipment position [25] - Keysight is progressing through regulatory reviews for pending acquisitions, including Spirent and Optical Solutions Group [22] Q&A Session Summary Question: Update on AI traction and its significance for the business - Management views AI as a long-term trend with a multiyear roadmap, contributing to growth in wireline business, which grew double digits in the first half [30][33] Question: Incremental improvement in top-line outlook - The increase in top-line expectations is based on strong performance in the first half and a solid pipeline of opportunities [39] Question: Clarification on tariff impact - The estimated annual tariff exposure is $75 million to $100 million, with efforts underway to mitigate this impact [44][45] Question: Insights on aerospace and defense orders - Orders grew in the U.S. and Europe, with notable contracts awarded, indicating a strong spending environment [56] Question: Understanding the wireless business performance - The wireless business remains stable, with strength in network infrastructure and ongoing investments in new technologies [66] Question: Growth in Software and Services segment - The company is focused on growing software and services, which have shown resilience during downturns, with double-digit growth in simulation business [70] Question: Demand in wireline and semiconductor testing - The wireline business remains heavily R&D oriented, benefiting from increased manufacturing activity as the industry ramps up for digital infrastructure [96]

Core Insights - Keysight (KEYS) is expected to report quarterly earnings of $1.65 per share, reflecting a year-over-year increase of 17% [1] - Anticipated revenues for the quarter are projected to be $1.28 billion, indicating a 5% increase compared to the same quarter last year [1] Earnings Estimates Revisions - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 0.3%, indicating a reassessment by analysts [2] - Revisions to earnings estimates are crucial for predicting investor actions and have shown a strong correlation with short-term stock price performance [3] Revenue Estimates by Segment - The consensus estimate for 'Revenue- Communications Solutions Group' is $884.15 million, reflecting a year-over-year change of +5.3% [5] - 'Revenue- Commercial Communications' is estimated at $588.52 million, suggesting a change of +4.5% year over year [5] - 'Revenue- Aerospace, Defense & Government' is forecasted to reach $295.62 million, indicating a change of +6.7% from the previous year [5] - 'Revenue- Electronic Industrial Solutions Group' is expected to be $395.34 million, with a year-over-year change of +5.1% [6] Income from Operations - 'Income from operations- Electronic Industrial Solutions Group' is projected to be $81.74 million, compared to $71 million from the previous year [6] - 'Income from operations- Communications Solutions Group' is expected to be $238.62 million, up from $223 million in the same quarter last year [7] Stock Performance - Keysight shares have increased by +22% in the past month, outperforming the +9% move of the Zacks S&P 500 composite [7] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [7]

Summary of Fortive (FTV) 2025 Conference Call Company Overview - **Company**: Fortive Corporation - **Upcoming Spin-off**: Fortive is set to spin off its precision technology segment as Ralliant by the end of Q2 2025 [1] Key Industry Insights Sensors and Safety - **Revenue Contribution**: Sensors and safety systems account for 56% of Ralliant's revenue [5] - **Growth Factors**: - **Utility Sector**: There is an expansion phase due to increased electricity demand and aging infrastructure, which is beneficial for sensor business related to transformers and the electric grid [6] - **Defense Technologies**: Strong backlog in the PACSCI EMC business, with global replenishment of production programs [6] - **Niche Applications**: Some resilience observed in harsh and regulated environments, although this segment has been slow [7] Test and Measurement - **Revenue Contribution**: Test and measurement segment represents 44% of revenue [12] - **Market Performance**: - **Diversified Electronics**: Largest market, currently down due to softness in EV and battery energy storage [16] - **Semiconductors**: Continued strength in data center-related products [16] - **Communications**: Softness observed in Europe, particularly in government contracts [18][21] Software Segment - **Revenue Contribution**: Software constitutes about 20% of new Fortive's revenue, with mid-single-digit growth reported [40][41] - **Recurring Revenue**: Approximately 50% of new Fortive's revenue is recurring, split between software and healthcare consumables [41] Financial Performance - **Q1 Performance**: Fortive reported 2% core growth and 80 basis points of year-over-year margin expansion [40] - **EBITDA Margins**: Ralliant is expected to have a pro forma EBITDA margin of 22%, while test and measurement is in the high teens [33] Strategic Initiatives - **Product Development**: Emphasis on investing in new product development to drive organic growth [60] - **Capital Allocation**: Fortive is generating approximately $1 billion in free cash flow annually, with plans to explore acquisitions and investments in high-potential areas [64][66] Market Trends and Challenges - **Tariff Impact**: Tariff mitigation strategies include dual sourcing and shifting production, with only 1% of sales impacted by tariffs from the US to China [89][90] - **European Market**: Cautious optimism regarding recovery in Europe, particularly in Germany, with expectations of a longer timeline for significant improvements [101][103] Additional Insights - **Innovation in Healthcare**: Long-term trends in healthcare demand driven by aging populations and the need for better access to quality care [47] - **SaaS Growth**: Strong growth in SaaS offerings, particularly in healthcare, is expected to be a major growth driver [51][53] Conclusion Fortive is positioned for growth through strategic investments in product development, a strong focus on recurring revenue from software, and a proactive approach to market challenges such as tariffs and supply chain dynamics. The upcoming spin-off of Ralliant is anticipated to unlock further value for shareholders.

Financial Data and Key Metrics Changes - Net revenue for Q3 fiscal year 2025 was $284.8 million, exceeding the midpoint of guidance range of $276 million to $288 million, representing a sequential increase of 5.2% and a year-over-year increase of 15.8% [6] - Operating margin for the quarter was 16.7%, above the high end of guidance range of 13% to 15%, and increased by 1.8% sequentially and 7.4% year-over-year [6][7] - EPS was $0.15, above the high end of guidance range of $0.10 to $0.13, with a sequential increase of $0.02 and a year-over-year increase of $0.09 [7] Business Segment Data and Key Metrics Changes - NSE revenue for Q3 was $208.2 million, slightly above the midpoint of guidance range of $200 million to $212 million, with a year-over-year increase of 22.6% [7][8] - NE revenue for the quarter was $188 million, a year-over-year increase of 23.9%, driven by strong demand for fiber-led and production products [8] - SE revenue was $20.2 million, an increase of 11.6% year-over-year, in line with expectations [9] - NSE gross margin was 63.1%, up 1.7% year-over-year, while NE gross margin was 63.4%, an increase of 190 basis points [9] - OSP revenue for Q3 was $76.6 million, just above the high end of guidance range, with a year-over-year increase of 0.5% [10] Market Data and Key Metrics Changes - The aerospace and defense business segment is expected to be a strong multiyear growth driver, particularly due to the acquisition of Inertia Labs [16] - Demand for fiber monitoring by hyperscale data center operators is expected to continue through calendar year 2025 [16] - The wireless business segment is seeing stronger demand for 5G field instruments, indicating a potential recovery in the overall wireless segment [17] Company Strategy and Development Direction - The company is prioritizing capital allocation towards M&A, specifically the acquisition of Spirent's high-speed Ethernet and network security business lines [12] - The company plans to finance the acquisition with additional debt while maintaining financial discipline, targeting less than four times gross leverage [12] - The company is assessing the potential impact of global tariffs on overall demand and timing of orders, with a cautious outlook for the fourth quarter [13][18] Management's Comments on Operating Environment and Future Outlook - Management noted that the March quarter was unseasonably strong, continuing the recovery and growth momentum from fiscal Q2 [15] - There are concerns about potential delays in customer orders due to recently imposed tariffs, but no cancellations have been reported [22][24] - Management expects some orders may be delayed or reduced in volume as customers adjust to tariff impacts [26][70] Other Important Information - Total cash and short-term investments at the end of Q3 were $400.2 million, down from $512.8 million in the previous quarter, primarily due to the Inertia Labs acquisition [11] - The company did not purchase any shares during the quarter, focusing on M&A instead [12] Q&A Session Summary Question: Concerns about tariff impacts on revenue - Management indicated that while there are concerns about delays in approved POs, no orders have been canceled, and customers are accepting tariff increases [22][24] Question: Exposure to tariffs from manufacturing locations - Approximately 15% of revenue is subject to tariffs, with China being the most affected region, but management expects to mitigate this impact within three to six months [27][28] Question: Strength in NSE business and service provider spending - Management believes the demand from service providers is healthy and not indicative of a pull-forward, with expectations of gradual recovery in spending [60][62] Question: Update on the aerospace and defense business - The aerospace and defense segment is experiencing strong growth, particularly in positioning, navigation, and timing due to demand for drones and anti-jamming technologies [84] Question: Size of the fiber lab and production business - Management estimates that fiber lab and production may account for around 20% of NSE revenue, with expectations of strong growth driven by data center demand [88][90]

Financial Data and Key Metrics Changes - Net revenue for Q3 2025 was $284.8 million, exceeding the guidance range of $276 million to $288 million, representing a sequential increase of 5.2% and a year-over-year increase of 15.8% [6][7] - Operating margin for the quarter was 16.7%, above the guidance range of 13% to 15%, and increased by 1.8% sequentially and 7.4% year-over-year [6][7] - EPS was $0.15, above the guidance range of $0.10 to $0.13, and increased by $0.02 sequentially and $0.09 year-over-year [7] Business Segment Data and Key Metrics Changes - NSE revenue was $208.2 million, slightly above the guidance range of $200 million to $212 million, with a year-over-year increase of 22.6% [7][8] - NE revenue was $188 million, up 23.9% year-over-year, driven by strong demand for fiber lab and production products [7][8] - SE revenue was $20.2 million, an increase of 11.6% year-over-year, aligning with expectations [8] - NSE gross margin was 63.1%, up 1.7% year-over-year, while NE gross margin was 63.4%, an increase of 190 basis points [8] - OSP revenue was $76.6 million, slightly above the guidance range, with a year-over-year increase of 0.5% [9] Market Data and Key Metrics Changes - The demand for fiber monitoring systems is being driven by service providers and hyperscale data center operators, indicating a strong recovery in the market [16] - The aerospace and defense segment is expected to be a multiyear growth driver, particularly due to the acquisition of Inertia Labs [16][45] - Wireless business demand is recovering, particularly for 5G field instruments, although infrastructure test products continue to show weakness [16] Company Strategy and Development Direction - The company is focusing on M&A, with plans to acquire Spirent's high-speed Ethernet and network security business lines, financing this with additional debt while maintaining financial discipline [12] - The company expects to realign its supply chain to mitigate tariff impacts within six months [29] - The strategy includes passing on tariff costs to customers, which is being accepted without significant pushback [34][37] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for Q4 due to potential delays in customer orders related to tariffs, although no orders have been canceled [22][25] - The company anticipates that the overall demand will remain flat relative to Q3, with specific segments like NSE taking a more prudent outlook [13][18] - Management noted that the demand for wireless field instruments is a leading indicator for the resumption of 5G network build-out [16] Other Important Information - Total cash and short-term investments at the end of Q3 were $400.2 million, down from $512.8 million in the previous quarter, primarily due to the Inertia Labs acquisition [11] - CapEx for the quarter was $6.8 million, compared to $3.2 million in the same period last year [12] Q&A Session Summary Question: Concerns about tariff impacts on revenue - Management noted that while there are concerns about delays in approved POs, no orders have been canceled, and customers are accepting tariff increases [22][23][25] Question: Revenue sourced from regions with high tariffs - Approximately 15% of revenue is subject to tariffs, with 3% directly impacted by current tariffs, but the company is working to mitigate this through supply chain adjustments [28][29] Question: Technology domains for future growth - The data center ecosystem is expected to drive strong growth, particularly in fiber lab and production, along with aerospace and defense segments [44][46] Question: OSP business outlook - The OSP business is expected to remain stable, with strength in anti-counterfeiting products offsetting seasonal weaknesses [53][54] Question: Service provider spending trends - Management believes there is a healthy demand from service providers, with a gradual return to normal spending patterns [60][62]

Core Insights - Emerson's annual NI Connect conference will take place from April 28-30, 2025, in Fort Worth, Texas, focusing on advancements in test and measurement technology [1][2] - The event will feature keynote presentations, live demonstrations, and educational sessions aimed at showcasing how integrated hardware and software approaches can enhance product testing and development [3][4] Event Details - The conference will gather engineers, researchers, and business leaders to discuss the future of test and measurement, including NI's Intelligent Test vision and advancements in platforms like NI LabVIEW, NI DAQ, and NI PXI [2][4] - Registration includes access to all sessions, certified training, meals, exhibitions, and social events [6] Keynote Speakers and Topics - Archer Aviation will discuss the use of NI's hardware-in-the-loop simulation platforms for validating their eVTOL aircraft, Midnight [7] - Milwaukee Tool will showcase their transformation of test automation for 24/7 tool life testing [7] - Qualcomm will present on standardizing NI's PXI-based test platforms for scalable validation of RF and PMIC devices [7] - The University of Texas will share insights on their student-led rocket engineering projects utilizing LabVIEW [7] Additional Highlights - Keynote presentations will feature leaders from Fortune 500 companies sharing success stories on how NI's test tools provide a strategic advantage [8] - New product announcements for NI DAQ, LabVIEW, and PXI will be made during the conference [8] - Networking opportunities will be available for attendees to engage with industry experts and explore best practices in advanced test and measurement [8]

Financial Data and Key Metrics Changes - Keysight reported Q1 revenue of $1.298 billion, exceeding guidance and reflecting a 3% year-over-year increase on both reported and core basis [22] - Earnings per share for the quarter were $1.82, with net income of $317 million [22] - Orders increased by 4% year-over-year to $1.263 billion, with a backlog of $2.3 billion at the end of the quarter [22] Business Line Data and Key Metrics Changes - The Communication Solutions Group (CSG) generated revenue of $883 million, up 5% year-over-year, with commercial communications and aerospace, defense, and government segments each increasing by 5% [24] - The Electronic Industrial Solutions Group (EISG) saw revenue decline by 1% to $415 million, with stable orders reflecting mixed demand across end-markets [24][16] Market Data and Key Metrics Changes - Strong demand in wireline offerings driven by AI, while wireless business remained stable with ongoing activity related to 5G and early 6G [11][13] - Aerospace, defense, and government revenues reached a first-quarter record, although orders were down due to continuing resolutions [15] Company Strategy and Development Direction - Keysight is focused on leveraging technological trends such as increased memory, faster processing, and greater bandwidth to drive future growth [10] - The company is well-positioned to capitalize on AI as a long-term secular tailwind for next-generation technologies [12] Management's Comments on Operating Environment and Future Outlook - Management expects a gradual recovery in 2025, despite monitoring potential policy changes in the U.S. [9] - The company remains optimistic about its ability to create value for stakeholders through strong customer engagement and a robust innovation pipeline [20] Other Important Information - Approximately 40% of Keysight's revenue comes from software and services, with recurring revenue at about 31% [19] - The company repurchased 450,000 shares at an average price of approximately $167, totaling $75 million [26] Q&A Session Summary Question: Upsides from the Commercial Communications segment - Management noted stability in wireless and strong growth in wireline driven by AI, with expectations for continued infrastructure spending [35][36] Question: Current budget environment for aerospace and defense - Management indicated a stable long-term outlook for defense budgets, with strong demand for solutions despite near-term continuing resolution issues [41][44] Question: R&D activity and commercialization of satellite communication - Management sees satellite communications as an incremental opportunity alongside 5G and 6G, with increased R&D investments expected [50][52] Question: Positive sales funnel and customer engagements - Management reported an improving sales funnel and customer decision-making velocity, supporting a gradual recovery thesis [60][61] Question: EV sales trends - Management indicated that EV sales remain constrained, particularly in R&D for battery development, but there is an uptick in e-mobility investments [68][70] Question: Performance of the ESI Group - Management confirmed that the ESI acquisition is on track, with consistent renewal rates, although softness in the auto market impacted upsell opportunities [72][73] Question: Pending acquisitions and their significance - Management stated that two pending acquisitions are contingent on the closure of the Synopsys and Ansys deal, with excitement about their potential contributions [75] Question: Operating expenses and investment outlook - Management expects a sequential increase in operating expenses in Q2, with plans for incremental investments in R&D and technology advancements [84][86] Question: Gross margin outlook - Management indicated that gross margins are mix-dependent, with expectations to return to mid-60% levels over time [106][110] Question: Business trends in China - Management reported strong customer relationships in China, with a focus on supporting customers' global strategies amid geopolitical challenges [131][132]