Core Insights - Keysight Technologies Inc. reported strong second-quarter fiscal 2025 results, with both revenue and net income exceeding Zacks Consensus Estimates, driven by growth in AI data-center, aerospace, defense, and government markets [1][2][3] Financial Performance - Net income on a GAAP basis was $257 million or $1.49 per share, compared to $126 million or $0.72 in the same quarter last year [2] - Non-GAAP net income was $295 million or $1.70 per share, up from $247 million or $1.41 in the prior-year quarter, surpassing the Zacks Consensus Estimate by $0.06 [2] - Quarterly net sales increased to $1.31 billion from $1.22 billion year-over-year, exceeding the high end of guidance, with total orders rising 8% to $1.31 billion [3] Segment Performance - The Communication Solutions Group (CSG) generated $913 million in revenues, a 9% increase from $840 million in the prior-year quarter, driven by demand for AI data-center network solutions [4] - The Electronic Industrial Solutions Group (EISG) revenues rose to $393 million from $376 million, supported by investments in advanced nodes and high-bandwidth memory, although automotive orders declined [6] Regional Performance - Asia-Pacific revenues reached $573 million, up from $496 million year-over-year, while revenues from the Americas improved by 4% to $510 million [7] - European revenues were $223 million, down 2% from $227 million in the prior-year quarter [7] Profitability Metrics - Non-GAAP gross profit totaled $844 million with gross margins of 64.6%, compared to $790 million and 65% in the prior-year quarter [8] - Non-GAAP operating margin was 25.2%, up from 24.2% year-over-year, with CSG at 25.9% and EISG at 23.4% [8] Cash Flow and Liquidity - In the first half of fiscal 2025, Keysight generated $862 million in cash from operating activities, compared to $438 million a year ago, with $3.11 billion in cash and cash equivalents as of April 30, 2025 [10] Outlook - For the second quarter of fiscal 2025, Keysight expects revenues between $1.3 billion and $1.32 billion, with non-GAAP earnings estimated between $1.63 and $1.69 per share [11]