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]