Keysight Technologies reported a strong finish to fiscal year 2025, with accelerating order momentum and revenue growth driven by demand in key markets like AI data center infrastructure and semiconductor solutions.
Revenue increased 10% year-over-year to $1.42 billion in Q4 FY2025.
positiveNon-GAAP diluted EPS grew 15.8% year-over-year to $1.91 in Q4 FY2025.
positiveFull-year revenue grew 8% to $5.37 billion, returning the company to full-year growth.
positiveFull-year non-GAAP diluted EPS increased 14.2% to $7.16.
positiveAnnounced a new $1.5 billion share repurchase program.
positiveCash flow from operations decreased to $225 million in Q4 FY2025 from $359 million in the prior year.
attentionFree cash flow decreased to $188 million in Q4 FY2025 from $328 million in the prior year.
attentionOperating margin in the Communications Solutions Group (CSG) slightly decreased to 27% from 28% year-over-year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Communications Solutions Group (CSG) | $990000.0B | $894000.0B | +11.0% | 69.8% |
Electronic Industrial Solutions Group (EISG) | $429000.0B | $393000.0B | +9.0% | 30.2% |
| Total Revenue | $1419000.0B | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| revenue | $1 billion 530 million to $1 billion 550 million | Q1 FY2026 | — | — |
| revenue | 10% year-over-year | Q1 FY2026 | — | — |
| EPS | 1 dollar 95 cents to 2 dollar 1 cent | Q1 FY2026 | — | — |
| revenue growth | at or above the high end of our 5 to 7 percent long-term target | FY2026 | — | — |
| revenue contribution from acquisitions | $375 million | FY2026 | — | — |
| synergies and operational efficiencies | in excess of $100 million | FY2026 | — | — |
| FY26 EPS growth | at or above our long-term 10 percent target | FY2026 | — | — |
| interest expense | $110 million | FY2026 | — | — |
| capital expenditures | $160 million | FY2026 | — | — |
| non-GAAP effective tax rate | 14 percent | FY2026 | — | — |
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.
The company is enabling customers in communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics markets to accelerate innovation to connect and secure the world.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.