Keysight AI Software Integrity Builder introduces a unified, lifecycle-based framework that answers the critical question: "What is happening inside the AI system, and how do I ensure it behaves safely in deployment? †The solution equips engineering teams with the evidence needed for regulatory conformance and enables continuous improvement of AI models. Unlike fragmented toolchains that address isolated aspects of AI testing, Keysight's integrated approach spans dataset analysis, model validation, real-wor ...

Group 1 - The core focus of the article is on Keysight's presentation at CES 2026, highlighting its comprehensive ecosystem for automotive design, development, validation, and cybersecurity solutions [1]

Group 1 - The core focus of the article is on Keysight's presentation at CES 2026, highlighting its comprehensive ecosystem for automotive design, development, validation, and cybersecurity solutions [1]

Core Insights - The company experienced a strong recovery in 2025, with growth expectations starting at the low end of the long-term range of 5% and finishing at 8% by year-end, with guidance for 10% growth in Q1 of the following year [1][2] Group 1: Performance and Growth - The company built momentum throughout 2025, transitioning from a mixed demand environment to a stronger performance as end markets improved [1][2] - The order book in Q4 was robust, indicating a strong backlog and a positive outlook for the upcoming quarter [2] Group 2: Technological Trends - Significant technological themes, particularly the impact of AI on the wireline business, are aligning positively for the company [2]

Summary of Keysight Technologies FY Conference Call (December 10, 2025) Company Overview - **Company**: Keysight Technologies (NYSE: KEYS) - **Fiscal Year**: 2025 - **Conference Date**: December 10, 2025 Key Industry Insights General Market Performance - **2025 Performance**: The company experienced a recovery with growth expectations starting at 5% and finishing at 8% for the year, with guidance for 10% growth in Q1 2026 [1][2] - **End-Market Environment**: Mixed performance across different business segments, with some areas showing growth while others remained soft [1][2] Technological Trends - **AI Impact**: AI is significantly influencing the wireline business, contributing to growth and driving new use cases across various sectors [4][5] - **Wireless Business Growth**: The wireless segment returned to growth, driven by advancements in non-terrestrial networks, early 6G research, and Open RAN [2][3] - **Semiconductor Market**: The semiconductor sector is rebounding, with increased demand for assurance of supply and AI-driven innovations [3] Defense Sector - **Aerospace and Defense**: The defense sector is seeing increased budgets from both the U.S. and European allies, with a focus on modernization and new programs like Golden Dome and GCAP [3][27][28] - **Record Orders**: Despite challenges such as government shutdowns, the aerospace defense business achieved record orders in 2025 [26][27] Financial Performance and Projections Revenue and Growth - **Recurring Revenue**: Approximately 30% of the business is recurring revenue, with expectations to reach around 40% due to recent acquisitions [14][15] - **Operating Margin**: The company aims for a 40% operating leverage, with expectations for EPS growth at or above 10% in 2026 despite potential dilution from acquisitions [33][36] Acquisitions and Integration - **Recent Acquisitions**: Three acquisitions completed in October 2025 are expected to enhance operating margins over the next 12-18 months [34][35] - **Cost Efficiency Target**: A target of $100 million in cost efficiencies primarily from synergies related to acquisitions [35] Emerging Opportunities AI and Data Centers - **AI Data Center Builder**: A new product that has received industry awards, aimed at helping hyperscalers with workload emulation and benchmarking [8][9] - **Growth in Data Center Capacity**: Projections indicate an additional 10-15 gigawatts of capacity in 2026 and 100 gigawatts over the next five years [10][12] Wireless and 6G Development - **5G and Beyond**: Continued investment in 5G standards and the emergence of 6G, with significant R&D activities expected to ramp up towards the end of the decade [22][24] - **Non-Terrestrial Networks**: Growth in direct-to-cell services and satellite constellations, with Keysight positioned to support these developments [20][21] Defense Technology Startups - **Emerging Startups**: Over 1,400 defense technology startups are entering the market, creating additional demand for Keysight's testing and emulation capabilities [30][31] Conclusion - **Positive Outlook**: Keysight Technologies is well-positioned for growth across multiple sectors, including AI, wireless communications, and defense, with a strong focus on technological advancements and strategic acquisitions [36]

Core Insights - Keysight Technologies, Inc. has received multiple awards and recognitions for its corporate social responsibility (CSR) efforts in 2025, including its eighth consecutive inclusion in the JUST 100 Ranking of America's Most Just Companies, where it has been recognized as the best in industry for six times [1][2] - The company has also maintained its position in the World's Most Sustainable Companies by Time, reflecting its commitment to ethical, environmentally sustainable, and socially responsible operations [2] - Keysight has been independently assessed and included in the FTSE4Good Index Series, which measures companies demonstrating strong Environmental, Social, and Governance (ESG) practices [3] Awards and Recognitions - Keysight has been recognized in the following categories in 2025: - TIME World's Most Sustainable Companies - Barron's 100 Most Sustainable U.S. Companies - JUST 100 Ranking of America's Most Just Companies, ranking as the 1 Industry Leader - Ranked 10 on 3BL's 100 Best Corporate Citizens - Listed on CDP's Supplier Engagement Assessment (SEA) A-list - Awarded Gold Medal from EcoVadis Sustainability Rating [5][6] Company Overview - Keysight Technologies is an S&P 500 company that provides market-leading design, emulation, and test solutions to help engineers develop and deploy technologies across various sectors, including communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics [5][7]

Core Insights - Keysight Technologies has launched the N99xxD-Series FieldFox Handheld Analyzer, enhancing its FieldFox family with advanced capabilities for RF signal analysis in complex environments [1][2] Product Features - The N99xxD-Series includes 14 models that cover frequencies up to 54 GHz, supporting over 25 software-defined applications for various RF analysis tasks [3] - Key capabilities include 120 MHz gap-free IQ streaming, high-speed data transfer via built-in SFP+ interfaces for 10 GbE, and unmatched RF performance with amplitude accuracy of ±0.1 dB [7] Technological Advancements - The new analyzers integrate advanced AI capabilities for faster spectrum operations, classifying major wireless standards like LTE, 5G NR, Wi-Fi, and Bluetooth with high speed and accuracy [4] - The Linux-based operating system enhances security and file management, while a touchscreen interface improves usability and efficiency [3] Market Positioning - The FieldFox D-Series is designed to meet the demands of engineers working in mission-critical RF environments, enabling faster troubleshooting and deeper analysis [2][5] - Keysight aims to empower customers with tools that allow for flexibility and rapid deployment of new capabilities, positioning itself as a leader in portable RF analysis [5]

Financial Data and Key Metrics Changes - Keysight reported a 12% increase in orders this year, with Q4 revenue growth of 10% organically [19][24] - The company aims for 10% EPS growth this year, despite some acquisitions being mildly dilutive to earnings in fiscal 2026 [24][25] Business Line Data and Key Metrics Changes - The Wireline ecosystem accounts for approximately 45% of the company's revenue, with significant growth driven by AI demand [10][11] - The Wireline business is expected to continue growing, with a mix of R&D and manufacturing shifting from 80/20 to 70/30 [15] Market Data and Key Metrics Changes - The demand signals across all end markets remain strong, with customers investing in multiple technology waves simultaneously [21] - The company is seeing a broader customer base globally, not just limited to the United States [21] Company Strategy and Development Direction - Keysight is focused on transforming from a product-centric to a solutions-oriented business, emphasizing software-centric changes [7][8] - The company is committed to maintaining a first-to-market approach, enhancing its role as a trusted advisor to clients [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing commitment to technology and the ability to adapt to rapid changes in the market [5][6] - The company is optimistic about emerging from the normalization phase with growth momentum, particularly in AI and connectivity sectors [9][10] Other Important Information - Keysight has completed three acquisitions, which are expected to be accretive to earnings in fiscal 2027 [24][25] - The company maintains a strong balance sheet with low leverage and significant cash reserves, allowing for flexibility in future capital deployment [44] Q&A Session Summary Question: What are the drivers of growth in the Wireline business? - Management indicated that the Wireline business is diversified, with significant contributions from silicon designers and hyperscalers [14] Question: Are there concerns about spending inefficiencies in the AI market? - Management is not concerned about spending inefficiencies, noting that the growth is driven by increased diligence and testing from customers [15][16] Question: How does the company view its competitive position in the market? - Keysight's ability to provide comprehensive system-level solutions across various technologies is seen as a key competitive advantage [12] Question: What is the outlook for the wireless business? - The wireless business is expected to grow, driven by technological changes and innovations, particularly in 6G and AI applications [38][41] Question: How is the company positioned regarding gross margins and tariffs? - Management stated that they have fully offset the impact of tariffs and expect to see improvements in gross margins moving forward [24][30]

Financial Data and Key Metrics Changes - Keysight reported a 12% increase in orders this year, with Q4 and Q1 revenue growth at 10% organically [19][22] - The company aims for 10% EPS growth this year, despite some headwinds from tariffs and acquisitions [22][24] Business Line Data and Key Metrics Changes - The wireline ecosystem now constitutes approximately 45% of the company's revenue, with significant growth driven by AI demand [10][11] - The wireline business is expected to continue growing, with a mix of R&D and manufacturing shifting from 80/20 to 70/30 [15] Market Data and Key Metrics Changes - The demand signals from customers remain strong, with investments in multiple technology waves, including networking and AI [20] - The company is seeing growth from a broader set of customers globally, not just in the U.S. [20] Company Strategy and Development Direction - Keysight is focused on becoming more solutions-oriented rather than just product-focused, enhancing its competitive moat [7][4] - The company is committed to maintaining a first-to-market approach, which has been integral to its strategy [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for innovation, particularly in AI and networking technologies [20][21] - The company is not currently facing material supply chain issues and is working proactively with its supply chain [21] Other Important Information - Keysight has completed three acquisitions, which are expected to be mildly dilutive to earnings in fiscal 2026 but accretive in fiscal 2027 [22][24] - The company is targeting $100 million in synergies from recent acquisitions, leveraging its salesforce and operational efficiencies [25][26] Q&A Session Summary Question: What are the drivers of growth in the wireline business? - The wireline business is experiencing growth due to increased demand for AI technologies and a diversified customer base, including hyperscalers [10][14] Question: How is the company addressing supply chain challenges? - The company is not seeing significant supply chain issues and is actively managing its supply chain to stay ahead [21] Question: What is the outlook for gross margins? - Management expects gross margins to improve due to synergies from acquisitions and a strong pipeline of new products [28][30] Question: How does the company view its competitive position in the market? - Keysight believes its ability to provide comprehensive solutions across various technologies is a key competitive advantage [12][33] Question: What are the company's priorities regarding capital deployment? - The company maintains a strong balance sheet with low leverage and is focused on integrating recent acquisitions while also considering share buybacks [43][44]

Core Insights - The discussion revolves around the competitive advantages and differentiation of Keysight Technologies in the market, particularly in relation to its share among major OEMs [1] Competitive Moat and Differentiation - Keysight has achieved near unanimous market share across various end markets with major OEMs, indicating a strong competitive position [1] - The factors contributing to this competitive moat include technology, speed to market, services, and a skilled base of engineers familiar with Keysight's technology [1]