01—Abstract
Summary
Summary of the 10-K filed December 17, 2024. Cited figures are marked; the original filing is the authoritative source.
Keysight Technologies, Inc. reported a challenging fiscal year 2024, with revenue declining by 9% to $4.979 billion compared to $5.464 billiona in fiscal year 2023.
This decline was primarily driven by lower customer demand amidst a challenging macroeconomic environment characterized by high interest rates and geopolitical tensions. Net income saw a significant decrease of 42% year-over-year, falling to $614 millionb from $1.057 billion in fiscal year 2023. This was attributed to lower revenues, increased acquisition and integration costs, and restructuring expenses.
Despite the near-term headwinds, Keysight remains focused on its long-term strategy of delivering differentiated, first-to-market solutions and capturing opportunities in emerging technologies like 5G/6G, AI, and advanced automotive systems. The company actively pursued strategic acquisitions in fiscal year 2024, including ESI Group SA, Riscure Holding B.V., and AnaPico AG, to broaden its software offerings and expand its reach in key markets. Management expressed confidence in the company's durable and resilient business model and its ability to navigate market conditions and deliver long-term value.
02—Key points
Key Highlights
- Revenue for fiscal year 2024 decreased by 9% to $4.979 billion, down from $5.464 billion in fiscal year 2023, primarily due to lower customer demand.
- Net income significantly decreased by 42% to $614 million in fiscal year 2024, compared to $1.057 billion in fiscal year 2023.
- The Communications Solutions Group (CSG) revenue decreased by 7% to $3.420 billion, while the Electronic Industrial Solutions Group (EISG) revenue decreased by 12% to $1.559 billion in fiscal year 2024.
- Keysight completed several strategic acquisitions in fiscal year 2024, including ESI Group SA, Riscure Holding B.V., and AnaPico AG, to enhance its capabilities and market presence.
- The company maintained a strong R&D investment, spending $919 million in fiscal year 2024, representing 18% of revenue, to drive innovation and first-to-market solutions.
- Cash flow from operations was $1.052 billion in fiscal year 2024, demonstrating continued operational cash generation despite the revenue decline.
- The company ended fiscal year 2024 with $1.814 billion in cash and cash equivalents.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Keysight Technologies, Inc. kept $0.12.
- Revenue$4.98B100.0%
- Cost of revenue−$1.85B37.1%
- Gross profit$3.13B62.9%
- Operating costs−$2.30B46.2%
- Operating income$833.0M16.7%
- Interest, other & tax−$215.0M4.3%
- Net income$618.0M12.4%
Where FY2024 revenue went
$4.98B- Cost of revenue: $1.85B, 37% of revenue
- SG&A: $1.40B, 28% of revenue
- R&D: $919.0M, 18% of revenue
- Net income: $618.0M, 12% of revenue
- Interest, other & tax: $215.0M, 4.3% of revenue
Kept 12% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed December 17, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $4.98B$5.46B | −8.9% |
| Cost of Revenue | $1.85B$1.93B | −4.5% |
| Gross Profit | $3.13B$3.53B | −11.3% |
| R&D Expenses | $919.00M$882.00M | +4.2% |
| SG&A Expenses | $1.40B$1.31B | +6.7% |
| Operating Expenses | $4.15B$4.11B | +1.0% |
| Operating Income | $833.00M$1.36B | −38.7% |
| Interest Expense | $84.00M$78.00M | +7.7% |
| Net Income | $618.00M$1.06B | −41.5% |
| EPS (Basic) | $3.53$5.95 | −40.7% |
| EPS (Diluted) | $3.51$5.91 | −40.6% |
| Shares Outstanding (Basic) | 174.00M178.00M | −2.2% |
| Shares Outstanding (Diluted) | 175.00M179.00M | −2.2% |
05—Questions
Frequently Asked Questions
What were the main drivers of Keysight's revenue decline in fiscal year 2024?
Keysight's revenue declined by 9% to $4.979 billion in fiscal year 2024. The primary drivers were lower customer demand, influenced by a challenging macroeconomic environment characterized by high interest rates, inflationary pressures, and geopolitical tensions. This impacted purchasing decisions across both the Communications Solutions Group (CSG) and the Electronic Industrial Solutions Group (EISG).
How did Keysight's profitability change in fiscal year 2024?
Profitability saw a significant reduction in fiscal year 2024. Net income decreased by 42% to $614 million, down from $1.057 billion in fiscal year 2023. This was mainly due to lower revenues, coupled with increased acquisition and integration costs, restructuring expenses, and amortization of acquisition-related balances.
What is Keysight's strategic focus and outlook for growth?
Keysight's core strategy remains centered on delivering differentiated, first-to-market solutions and capturing opportunities in high-growth areas such as 5G/6G, AI, high-speed data centers, advanced automotive, and defense modernization. The company made significant investments in acquisitions during fiscal year 2024, including ESI Group SA, Riscure Holding B.V., and AnaPico AG, to expand its software capabilities and market reach. Despite near-term macroeconomic challenges, Keysight is confident in the long-term secular growth trends of its markets and its ability to outperform.
What was the impact of acquisitions on Keysight's financial performance?
Keysight made several strategic acquisitions in fiscal year 2024. The acquisition of ESI Group SA contributed $141 million in revenue but also resulted in $68 million in net loss attributable to Keysight shareholders for the year. Acquisitions also contributed to increased acquisition and integration costs, which impacted net income. Overall, acquisitions added approximately 3 percentage points to revenue growth and 4 percentage points to order growth, partially offsetting the underlying organic declines.
06—Continue