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]

Financial Performance and Key Metrics - Keysight reported fourth quarter revenue of $1,419 million, exceeding guidance and reflecting a 10% increase year-over-year, or 9% on a core basis [16] - Orders for the fourth quarter reached $1,533 million, up 14% on a reported basis or 12% on a core basis [17] - Full year revenue was $5,375 million, an 8% increase as reported, or 7% on a core basis, with earnings per share (EPS) of $7.16, up 14% [17][18] Business Segment Performance - The Communication Solutions Group (CSG) generated fourth quarter revenue of $990 million, up 11% on a reported basis, driven by strong wireline and wireless performance [18] - The Electronic Industrial Solutions Group (EISG) reported revenue of $429 million, a 9% increase on a reported basis, with growth in semiconductor and general electronics [18] - Software and services accounted for approximately 37% of total revenue, with annual recurring revenue at 29% [18] Market Performance - Wireline orders and revenue grew double digits in Q4 and for the full year, driven by AI infrastructure buildouts and technology upgrades [6][10] - Wireless orders and revenue grew high single digits for the full year, supported by ongoing standards evolution and early 6G research [9] - Aerospace, defense, and government sectors saw record orders, with revenue increasing by 8% for the year, reflecting strong customer engagement in defense modernization [10][11] Company Strategy and Industry Competition - Keysight's strategy focuses on software-centric solutions and recent acquisitions to enhance capabilities in AI, 6G, and semiconductor markets [4][5] - The company is well-positioned to capture growth opportunities in emerging technologies, including AI and defense, with a robust sales pipeline [4][10] - Keysight aims to realize over $100 million in synergies from recent acquisitions, which are expected to be accretive to earnings within 12 months post-close [20][21] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about wireless growth in FY2026, driven by stabilization in 5G and advancements in next-gen connectivity [24] - The company anticipates revenue growth in FY2026 to be at or above the high end of its long-term target of 5%-7%, excluding acquisitions [20][22] - Keysight's operating model is expected to generate strong free cash flow, allowing for continued investment in R&D and shareholder returns [5][19] Other Important Information - Keysight achieved record free cash flow of $1.3 billion in FY2025, with $375 million returned to shareholders through buybacks [5][19] - The company has authorized an additional $1.5 billion share repurchase program to support ongoing capital return [5] Q&A Session Summary Question: How does the company see wireless trending in FY2026? - Management is optimistic about wireless growth, driven by stabilization in 5G and investments in advanced technologies [24] Question: What is the expected growth from the adoption of 1.6 TB per second wireline? - The company believes that higher technological complexity will drive growth in wireline, with a strong focus on first-to-market solutions [25] Question: Can you elaborate on the order acceleration and its drivers? - The revenue outperformance was attributed to broad order strength across both CSG and EISG, with a robust pipeline for future growth [27][28] Question: What are the expectations for M&A revenue contributions? - Approximately 30% of the revenue from acquisitions is expected in Q1, with the remainder distributed evenly across the following quarters [39] Question: How does the company plan to achieve operating margin targets? - Management indicated that achieving the 31%-32% operating margin target is further out, with current margins at 26% [47] Question: What is the outlook for software and services revenue growth? - The company expects continued growth in software and services, particularly with the integration of recent acquisitions [56]

Safe Harbor This communication contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created therein. Statements preceded by, followed by, or that otherwise include the words "anticipate," "assume," "plan," "estimate," "expect," "guidance," "intend," "implied," "target," "believe," "outlook," and similar words or expressions, or future or conditional verbs ...

Core Viewpoint - The rapid rise of AI technology has led to an exponential increase in the demand for data bus throughput in servers and computing devices, necessitating upgrades in PCIe standards to meet these requirements [1][2]. Group 1: PCIe Standards and Challenges - PCIe standards have evolved to PCIe 6.0 and 7.0, achieving signal frequencies of up to 128 GT/s and expanding channel configurations from x1 to x16 to facilitate high bandwidth transmission [1][2]. - Higher signal frequencies result in exponential increases in insertion loss, leading to reduced signal amplitude and distortion, while impedance discontinuities in PCB traces can cause signal reflection and timing jitter, impacting signal integrity [1][2]. Group 2: Insertion Loss and Impedance - Insertion loss refers to the power loss due to conductor and dielectric losses as signals pass through PCB transmission lines, typically measured in decibels (dB), with PCIe 5.0 requiring insertion loss not to exceed 0.6 dB at 16 GHz [3]. - Characteristic impedance, determined by the geometric structure and material properties of transmission lines, is typically recommended at 50Ω or 100Ω (differential), with impedance mismatches leading to signal reflection and return loss degradation [5]. Group 3: Testing Methods - Vector Network Analyzers (VNAs) are the preferred instruments for measuring insertion loss, allowing direct comparison of output and input signals to reflect losses [9][11]. - The Delta-L method, developed by Intel, enhances measurement accuracy by compensating for fixture effects and impedance mismatches, making it a mainstream method for PCB production testing [12][18]. Group 4: Rohde & Schwarz Testing Solutions - Rohde & Schwarz offers a comprehensive range of vector network analyzers, including models like R&S®ZNA, R&S®ZNB, and R&S®ZNBT, covering frequency ranges from 9 kHz to 110 GHz, catering to diverse testing needs [20]. - The integrated Delta-L functionality in Rohde & Schwarz VNAs allows for efficient insertion loss testing without external computers, streamlining the testing process [21][22]. - The TDR functionality in Rohde & Schwarz VNAs supports various window functions and time-domain enhancement algorithms, displaying both impedance and frequency domain S-parameter information for effective diagnostics [27][29]. Group 5: Future Outlook - Rohde & Schwarz's ZNA/ZNB/ZNL series, equipped with electronic calibration components and built-in impedance testing capabilities, redefine PCB insertion loss and impedance testing standards, addressing the higher demands of future 6G communications and AI server applications [35].

Summary of Ralliant's Earnings Call Company Overview - **Company**: Ralliant - **Industry**: Advanced Industrial Technology - **Key Executives**: Tami Newcombe (CEO), Neil Reynolds (CFO) - **Recent Milestone**: First earnings call as an independent public company after spinning off from Fortive on June 30th, 2023 [3][4] Core Points and Arguments Business Structure and Strategy - Ralliant has established a leadership team with deep industry knowledge and operational rigor, emphasizing stability and expertise [4][5] - The company introduced a profitable growth strategy, focusing on long-term growth vectors that align with secular trends [5][11] - Ralliant operates in two segments: Sensors and Safety Systems (60% of business) and Test and Measurement (40% of business) [8][9] Customer Base and Market Position - Ralliant serves approximately 90,000 customers globally, including major industrial and technology companies [6][8] - The company differentiates itself through precision engineering and proprietary manufacturing processes [6][7] Growth Vectors - **Defense Sector**: Anticipating a surge in demand, with a backlog nearly double the annual revenue for 2026-2028 [16][19] - **Power Grid**: Significant opportunities exist due to aging infrastructure, with 70% of the US grid over 25 years old [17][18] - **Electrification**: Growth in sectors related to electronics and precision instruments [11] Financial Performance and Projections - Ralliant reported $2 billion in revenue last year with 7,000 employees [8] - The company aims for a growth rate of 3%-5% over the next few years, with certain segments like defense and power grid showing higher growth potential [30] - The EBITDA margin for Sensors and Safety Systems is in the high 20s, while Test and Measurement targets mid-teens to low 20s [37][38] Challenges and Opportunities - The Test and Measurement segment has faced challenges but is expected to recover with new product launches and improved market conditions [31][36] - The company is adapting to changes in the China market and exploring opportunities in India and Southeast Asia [36] Capital Allocation and Investment Strategy - Ralliant plans to increase capital expenditures from 2% to 2%-3% of revenue to support growth initiatives [22] - The focus will be on organic growth, returning capital to shareholders, and potential tuck-in acquisitions [23] Additional Important Insights - Ralliant's business model is diversified both by end markets and geography, with a balanced presence in the US and international markets [7][8] - The company is committed to enhancing its service offerings by transitioning from individual sensor products to comprehensive solution packages that include analytics and software [26] - The leadership emphasizes a disciplined approach to capital allocation and operational efficiency to drive long-term value creation [11][22] This summary encapsulates the key points discussed during Ralliant's earnings call, highlighting the company's strategic direction, market opportunities, and financial outlook.

Core Insights - The article discusses a new portfolio of compact, regenerative power supplies and loads designed to help engineers meet the demands of complexity, space, and sustainability [1] Group 1 - The new power supplies and loads aim to address the increasing complexity faced by engineers in their projects [1] - The products are designed to be space-efficient, catering to the growing need for compact solutions in engineering [1] - Sustainability is a key focus, with the new portfolio contributing to environmentally friendly engineering practices [1]

Financial Data and Key Metrics Changes - Net revenue for Q1 2026 was $299.1 million, exceeding guidance of $290 million to $298 million, representing a 3% sequential increase and a 25.6% year-over-year increase [4] - Operating margin for Q1 was 15.7%, above guidance of 14.6% to 15.4%, and increased by 130 basis points sequentially and 570 basis points year-over-year [4] - EPS for the quarter was $0.15, above guidance of $0.13 to $0.14, and increased by $0.02 sequentially and $0.09 year-over-year [4] Business Segment Data and Key Metrics Changes - NSC revenue was $216 million, above guidance of $208 million to $214 million, with a year-over-year increase of 35.5% driven by strong demand from the data center ecosystem and the acquisition of Inertia Labs [5] - OSB revenue was $83.1 million, in line with guidance of $82 million to $84 million, and up 5.5% year-over-year, primarily due to strength in anti-counterfeiting products [6] Market Data and Key Metrics Changes - Total cash and short-term investments at the end of Q1 were $549.1 million, compared to $429 million in the previous quarter [7] - Cash flow from operating activities for the quarter was $31 million, up from $13.5 million in the same period last year [7] Company Strategy and Development Direction - The company expects continued strong demand in NSC driven by the data center ecosystem and aerospace and defense customers, with a focus on integrating the recently acquired Spirent Communications product lines [9][10] - The company plans to report NSC as one business segment going forward, leveraging complementary product portfolios [10] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum from Q4 2025, with expectations for continued growth in NSC driven by data center demand and aerospace and defense [11][12] - The service providers' business was stable, with gradual recovery in fiber offset by soft demand for wireless products [13] Other Important Information - The company successfully refinanced $250 million in convertible notes and repurchased approximately 2.7 million shares for about $30 million [7] - The acquisition of Spirent Communications is expected to add about $200 million in annual revenue run rate, higher than the previous estimate of $188 million [8][44] Q&A Session Summary Question: Update on revenue mix between core telecom service provider and new products - Management indicated a shift in revenue mix to approximately 45% service provider, 40% data center ecosystem, and 15% aerospace and defense, with data center revenue approaching service provider levels [18][19] Question: Growth breakdown in core NSC business - Management noted strong demand from data center and aerospace and defense sectors, with traditional field instruments seeing increased demand from hyperscalers [20][22] Question: Operating margin guidance for NSC - Management expects operating margins to improve with Spirent's contribution, projecting around $165 million in quarterly revenue from Spirent [24][25] Question: Impact of wireless business recovery on earnings - Management acknowledged that recovery in the wireless segment could significantly enhance earnings, with potential for EPS to approach $1 if trends continue positively [27][28] Question: Margin profile of Spirent Communications business - Management stated that Spirent has a higher gross margin than the average NSC and is expected to be accretive post-integration [51][52]

Core Insights - Keysight Technologies, Inc. has completed the acquisition of Spirent Communications plc, marking a significant milestone for the company [1] Group 1: Acquisition Details - The acquisition combines Keysight's expertise in design, emulation, and testing with Spirent's strengths in satellite emulation, positioning, and network automation [1] - This strategic move aims to expand Keysight's portfolio to better serve its customers [1]

Core Insights - Keysight Technologies has launched the AE6980T nGBASE-AU Optical Automotive Ethernet Transmitter Test Solution, the first platform to qualify next-generation optical automotive Ethernet PHYs in compliance with the IEEE 802.3cz standard [1][5] - The new solution aims to enhance in-vehicle networking for software-defined and autonomous vehicles by providing low-latency, EMI-immune links with high bandwidth and reduced cabling weight [2][3] Product Features and Benefits - The AE6980T is built on Keysight's FlexDCA platform and integrates advanced Transmitter Distortion Figure of Merit (TDFOM) measurement capabilities, which are essential for assessing optical signal quality [4][7] - The solution automates complex test setups and generates comprehensive HTML reports, improving efficiency for validation and engineering teams [4][5] - Keysight collaborated with KD, a leader in nGBASE-AU multigigabit optical automotive Ethernet technology, to develop the IEEE 802.3cz standard and TDFOM test specifications [5][6] Industry Impact - The introduction of optical automotive Ethernet technology is seen as a transformative step in the in-vehicle network landscape, supporting the shift towards centralized zonal architectures and higher levels of automation in vehicles [3][6] - Keysight's solutions are positioned to redefine automotive connectivity, setting new benchmarks for performance and reliability in the industry [6][9]

Core Insights - Keysight Technologies, Inc. has launched the UALink 1.0 transmitter test solution, which is a dedicated compliance test tool for UALink devices [1] - The new test application facilitates high-speed validation in advanced computing and AI interconnect systems, automating essential electrical measurements to ensure signal integrity and compliance with standards at 200 Gb/s link speeds [1] - The UALink 1.0 technology was introduced in 2024, indicating a forward-looking approach in technology development [1]