Keysight Technologies Reports First Quarter 2025 Results

Keysight Technologies, a leading provider of design, emulation, and test solutions, has released its financial results for the first fiscal quarter ending January 31, 2025. The company reported strong performance, surpassing the high end of its guidance, and highlighted a robust innovation pipeline driving a return to growth.

Financial Highlights

Keysight Technologies reported revenue of $1.30 billion for Q1 2025, a 3% increase from $1.26 billion in Q1 2024. GAAP net income was $169 million, or $0.97 per share, slightly down from $172 million, or $0.98 per share, in the same period last year. Non-GAAP net income rose to $317 million, or $1.82 per share, compared to $286 million, or $1.63 per share, in Q1 2024. The company also reported a significant increase in cash flow from operations, which reached $378 million, up from $328 million in the previous year.

Business and Operational Highlights

The Communications Solutions Group (CSG) reported revenue of $883 million, a 5% increase from the prior year, driven by growth in both commercial communications and aerospace, defense, and government sectors. The Electronic Industrial Solutions Group (EISG) saw a slight decline in revenue, reporting $415 million, down 1% from the previous year, reflecting mixed demand across end markets.

Strategic Initiatives and Corporate Developments

Keysight Technologies continues to focus on innovation and long-term value creation. The company reported free cash flow of $346 million, up from $281 million in Q1 2024. As of January 31, 2025, cash and cash equivalents totaled $2.06 billion, indicating a strong liquidity position.

Management's Perspective

Satish Dhanasekaran, Keysight’s President and CEO, commented on the results, stating, "Keysight delivered strong first quarter results, reflecting year-over-year growth in revenues and orders. The demand environment remains consistent with our view of a gradual recovery in 2025. The world’s most technologically advanced companies trust Keysight to deliver critical enabling technologies across a broad spectrum of next-generation use cases, and we are well-positioned to create long-term value for our stakeholders."

Future Outlook

For the second fiscal quarter of 2025, Keysight expects revenue to be in the range of $1.27 billion to $1.29 billion. Non-GAAP earnings per share are projected to be between $1.61 and $1.67, based on a weighted diluted share count of approximately 174 million shares and a non-GAAP tax rate of 14%.

SEC Filing: Keysight Technologies, Inc. [ KEYS ] - 8-K - Feb. 25, 2025