Keysight Technologies Reports Strong Financial Results for Q4 and Fiscal Year 2025
On November 24, 2025, Keysight Technologies, Inc. (NYSE: KEYS) unveiled its financial results for the fourth quarter and the entire fiscal year ending October 31, 2025. The report highlights a significant rebound in performance, with the company returning to full-year growth, driven by robust demand for its innovative solutions across various markets.
1. Executive Insights
Satish Dhanasekaran, Keysight's President and CEO, expressed his enthusiasm regarding the company's performance, stating, “Keysight delivered an outstanding quarter and strong close to the fiscal year, returning the company to full-year growth with order momentum accelerating through the year. These results reflect our leadership across the markets we serve and sustained demand for Keysight's highly differentiated solutions.”
2. Fourth Quarter Financial Highlights
Revenue and Income Metrics
- Revenue: Keysight reported a revenue of $1.42 billion for Q4, up from $1.29 billion in the same quarter last year.
- GAAP Net Income: The company achieved a GAAP net income of $229 million, or $1.33 per share, a substantial recovery from a GAAP net loss of $73 million, or $0.42 per share, in Q4 2024.
- Non-GAAP Net Income: Non-GAAP net income reached $331 million, or $1.91 per share, compared to $288 million, or $1.65 per share, in the fourth quarter of the previous year.
- Cash Flow: Cash flow from operations totaled $225 million, although it decreased from $359 million year-over-year. Free cash flow also declined to $188 million from $328 million in Q4 2024.
- Cash Reserves: As of October 31, 2025, Keysight maintained a strong cash and cash equivalents balance of $1.87 billion.
Fiscal Year Performance
In addition to the quarterly results, Keysight’s fiscal year 2025 performance also showed impressive growth:
- Total Revenue: The company reported an annual revenue of $5.37 billion, an increase from $4.98 billion in fiscal 2024.
- GAAP Net Income: For the fiscal year, GAAP net income rose to $846 million, or $4.89 per share, compared to $614 million, or $3.51 per share, in the prior year.
- Non-GAAP Net Income: Non-GAAP net income for fiscal 2025 was $1.24 billion, or $7.16 per share, up from $1.10 billion, or $6.27 per share, in fiscal 2024.
- Cash Flow: Cash flow from operations increased to $1.41 billion, up from $1.05 billion in the previous year, while free cash flow reached $1.28 billion, compared to $0.91 billion in fiscal 2024.
3. Segment Performance
Communications Solutions Group (CSG)
The Communications Solutions Group reported revenue of $990 million in the fourth quarter, reflecting an 11% increase compared to the previous year. This growth was primarily driven by heightened investments in AI data center infrastructure, non-terrestrial network applications, and defense modernization efforts.
Electronic Industrial Solutions Group (EISG)
The Electronic Industrial Solutions Group also showed strong performance with revenue of $429 million in Q4, representing a 9% year-over-year increase. The growth in this segment was attributed to advancements in general electronics and leading-edge semiconductor solutions.
4. Share Repurchase Program
In a strategic move to enhance shareholder value, Keysight announced the authorization of a new share repurchase program amounting to $1.5 billion. This program is effective immediately and replaces the previous repurchase plan. Shares may be bought back periodically, depending on market conditions and other opportunities, with the flexibility to commence, suspend, or discontinue purchases at the company’s discretion.
5. Outlook for Fiscal Year 2026
Looking ahead, Keysight anticipates revenue for the first quarter of fiscal 2026 to range between $1.53 billion and $1.55 billion. Non-GAAP earnings per share for the same period are expected to fall between $1.95 and $2.01. The company cautioned that certain items impacting the GAAP tax rate are tied to future events and could not be estimated with precision at this time.
6. Conclusion
Keysight Technologies’ impressive financial results for Q4 and fiscal year 2025 signal a robust recovery and a promising outlook for the future. With continued demand for its innovative solutions and a proactive approach to shareholder value through its repurchase program, Keysight appears well-positioned to capitalize on growth opportunities in the coming year.
