Keysight Technologies Reports Third Quarter 2025 Results

Keysight Technologies, Inc. reported its financial results for the third fiscal quarter ended July 31, 2025. The company demonstrated strong performance, surpassing the high end of its guidance for both revenue and earnings per share (EPS). This achievement reflects the company's effective execution of its strategy and the robust demand in its end markets.

Financial Highlights

For the third quarter of 2025, Keysight Technologies reported:

• Revenue of $1.35 billion, an increase from $1.22 billion in the third quarter of 2024.
• GAAP net income of $191 million, or $1.10 per share, compared to $389 million, or $2.22 per share, in the same period last year.
• Non-GAAP net income of $297 million, or $1.72 per share, up from $275 million, or $1.57 per share, in the third quarter of 2024.
• Cash flow from operations of $322 million, compared to $255 million in the previous year.
• Free cash flow of $291 million, up from $222 million in the third quarter of 2024.

Business and Operational Highlights

Keysight's performance was driven by its two main segments:

• Communications Solutions Group (CSG): Reported revenue of $940 million, reflecting an 11% increase from the prior year. This growth was driven by a 13% increase in commercial communications and an 8% increase in aerospace, defense, and government sectors.
• Electronic Industrial Solutions Group (EISG): Reported revenue of $412 million, also up 11% from the previous year, with growth across semiconductor, general electronics, and automotive and energy sectors.

Strategic Initiatives and Corporate Developments

Keysight Technologies continues to focus on strategic initiatives to enhance its market position. The company has raised its full-year outlook, expecting revenue growth of approximately 7% for fiscal year 2025. Additionally, non-GAAP earnings per share growth for the fiscal year is projected to be around 13% at the midpoint of fourth quarter guidance.

Management's Perspective

Satish Dhanasekaran, Keysight’s President and CEO, commented on the results, stating, "Keysight delivered strong results this quarter, exceeding the high end of our guidance for both revenue and earnings per share. We are executing our strategy and capitalizing on the opportunities in our end markets. We are raising our outlook for the full year once again and continue to see solid demand and strong customer engagements."

Future Outlook

For the fourth fiscal quarter of 2025, Keysight expects revenue to be in the range of $1.370 billion to $1.390 billion. Non-GAAP earnings per share are anticipated to be between $1.79 and $1.85, based on a weighted diluted share count of approximately 173 million shares.

SEC Filing: Keysight Technologies, Inc. [ KEYS ] - 8-K - Aug. 19, 2025