10-KPeriod: FY2025

Keysight Technologies, Inc. Annual Report, Year Ended Oct 31, 2025

Filed December 17, 2025For Securities:KEYS

Summary

Keysight Technologies, Inc. reported a strong financial year ending October 31, 2025, with revenue increasing by 8% to $5.375 billion, driven by growth in both the Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG). This growth was fueled by customer investments in next-generation technologies such as AI, high-speed networks, and defense modernization. The company executed significant strategic acquisitions during the year, including Spirent Communications plc, Synopsys' Optical Solutions Group (OSG), and Ansys' PowerArtist RTL business. These acquisitions are expected to expand Keysight's portfolio and market reach, particularly in communications test and design engineering software. Despite increased R&D and acquisition-related expenses, Keysight demonstrated improved profitability, with net income rising 38% year-over-year to $850 million. Looking ahead, Keysight remains optimistic about long-term growth trends in its markets, supported by its first-to-market solutions strategy and continued R&D investments. The company's robust backlog and focus on expanding its software and services offerings position it well to navigate macroeconomic uncertainties and capitalize on emerging technological advancements.

Financial Highlights

54 data points
Beta

Revenue

$5.38B

62.1% Gross Margin

Net Income

$850.00M

15.8% Net Margin

EPS (Diluted)

$4.91

Total Assets

$11.30B

Cash & Equivalents

$1.87B

Free Cash Flow

$1.28B

Financial Statements
Beta
Revenue$5.38B
Cost of Revenue$2.04B
Gross Profit$3.34B
R&D Expenses$1.01B
SG&A Expenses$1.47B
Operating Expenses$4.50B
Operating Income$876.00M
Interest Expense$96.00M
Net Income$850.00M
EPS (Basic)$4.93
EPS (Diluted)$4.91
Shares Outstanding (Basic)172.00M
Shares Outstanding (Diluted)173.00M

Key Highlights

  • 1Revenue increased 8% to $5.375 billion for the fiscal year ended October 31, 2025.
  • 2Net income rose significantly by 38% to $850 million, demonstrating improved profitability.
  • 3Key acquisitions in fiscal year 2025 included Spirent Communications plc, Synopsys' Optical Solutions Group, and Ansys' PowerArtist RTL business, aimed at expanding market reach and capabilities.
  • 4Strong performance in both Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) segments contributed to overall revenue growth.
  • 5Customer investments in AI, high-speed networks, and defense modernization are key drivers for the company's solutions.
  • 6The company's backlog increased year-over-year to $2.697 billion, indicating strong future revenue potential.
  • 7Keysight continued its strategic R&D investments, highlighting a commitment to innovation and future growth.

Frequently Asked Questions

Keysight's revenue growth in fiscal year 2025 was driven by significant customer investments in key technology areas such as artificial intelligence (AI), high-speed data center networks, communications evolution (5G/6G), satellite networks, and defense modernization. Growth was observed across both the Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG).

Keysight made several strategic acquisitions in 2025, including Spirent Communications plc, Synopsys' Optical Solutions Group (OSG), and Ansys' PowerArtist RTL business. These acquisitions expanded the company's portfolio and market presence, particularly in communications test and design engineering software. While these acquisitions contributed to increased R&D and integration costs, they are expected to drive long-term growth and are reflected in the overall revenue increase.

Keysight is confident in the long-term secular growth trends of its markets. The company's strategy of delivering first-to-market solutions and investing in R&D for next-generation technologies positions it for continued growth. Keysight anticipates ongoing customer investments in areas like AI, advanced semiconductors, and evolving communication standards.

Keysight's backlog increased to approximately $2.697 billion as of October 31, 2025, up from $2.375 billion in the prior year. This increase is partly due to acquisitions, mainly Spirent, and orders exceeding revenue recognition. The backlog is generally expected to be recognized as revenue within six months and serves as an indicator of short-term revenue performance.