01—Abstract
Summary
Summary of the 10-K filed December 17, 2025. Cited figures are marked; the original filing is the authoritative source.
Keysight Technologies, Inc. reported a strong financial year ending October 31, 2025, with revenue increasing by 8% to $5.375 billiona, 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 millionb. 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.
02—Key points
Key Highlights
- Revenue increased 8% to $5.375 billion for the fiscal year ended October 31, 2025.
- Net income rose significantly by 38% to $850 million, demonstrating improved profitability.
- Key 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.
- Strong performance in both Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) segments contributed to overall revenue growth.
- Customer investments in AI, high-speed networks, and defense modernization are key drivers for the company's solutions.
- The company's backlog increased year-over-year to $2.697 billion, indicating strong future revenue potential.
- Keysight continued its strategic R&D investments, highlighting a commitment to innovation and future growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Keysight Technologies, Inc. kept $0.16.
- Revenue$5.38B100.0%
- Cost of revenue−$2.04B37.9%
- Gross profit$3.34B62.1%
- Operating costs−$2.46B45.8%
- Operating income$876.0M16.3%
- Interest, other & tax−$26.0M0.5%
- Net income$850.0M15.8%
Where FY2025 revenue went
$5.38B- Cost of revenue: $2.04B, 38% of revenue
- SG&A: $1.47B, 27% of revenue
- R&D: $1.01B, 19% of revenue
- Net income: $850.0M, 16% of revenue
Kept 16% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed December 17, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $5.38B$4.98B | +8.0% |
| Cost of Revenue | $2.04B$1.85B | +10.4% |
| Gross Profit | $3.34B$3.13B | +6.5% |
| R&D Expenses | $1.01B$919.00M | +9.6% |
| SG&A Expenses | $1.47B$1.40B | +5.7% |
| Operating Expenses | $4.50B$4.15B | +8.5% |
| Operating Income | $876.00M$833.00M | +5.2% |
| Interest Expense | $96.00M$84.00M | +14.3% |
| Net Income | $850.00M$618.00M | +37.5% |
| EPS (Basic) | $4.93$3.53 | +39.7% |
| EPS (Diluted) | $4.91$3.51 | +39.9% |
| Shares Outstanding (Basic) | 172.00M174.00M | −1.1% |
| Shares Outstanding (Diluted) | 173.00M175.00M | −1.1% |
05—Questions
Frequently Asked Questions
What were Keysight's primary growth drivers for the fiscal year 2025?
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).
How did Keysight's acquisition strategy impact its financial performance in 2025?
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.
What is Keysight's outlook for the upcoming fiscal year?
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.
How has Keysight's backlog evolved, and what does it indicate?
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.
06—Continue