The earnings call presented a strong quarter with revenue and EPS exceeding guidance, robust order growth, and notable performance in Communications Solutions and Aerospace Defense. However, challenges such as tariff impacts on margins and mixed demand in certain segments were highlighted. Overall, the positive aspects, including strong financial performance and strategic growth initiatives, outweigh the concerns over tariffs and mixed demand.

Company Guidance -

Q3 2025

During the fiscal second quarter of 2025, Keysight Technologies reported revenue of $1.3 billion and earnings per share of $1.70, both exceeding the high end of their guidance. The company experienced an 8% year-over-year growth in orders, reaching $1.3 billion, and demonstrated resilience despite macroeconomic uncertainties. Keysight's Communications Solutions Group (CSG) saw a 9% increase in revenue, driven by strong demand in commercial communications and aerospace defense. The Electronics Industrial Solutions Group (EISG) returned to growth after six quarters of decline, with a 5% increase in revenue, supported by strong demand in semiconductor testing. Software and services constituted 36% of total revenue, while annual recurring revenue accounted for 28% of the total mix. Despite facing $7 million in new tariff expenses that impacted margins by 60 basis points, the company remains confident in its flexible cost structure and global supply chain capabilities. Keysight raised its full-year growth expectations and anticipates FY '25 revenue growth at the midpoint of its 5% to 7% long-term target, with annual EPS growth slightly above the 10% target.

Exceeding Revenue and EPS Guidance

Keysight delivered revenue of $1.3 billion and earnings per share of $1.70, both exceeding the high end of guidance for Q2 2025.

Strong Order Growth

Orders grew 8% year-over-year and 4% sequentially to $1.3 billion, indicating strong demand in various segments.

Communications Solutions Group Performance

CSG revenue reached $913 million, up 9%, driven by sustained strength in wireline and growth in wireless, along with double-digit growth in commercial communications orders.

Aerospace Defense and Government Growth

Orders and revenue in the aerospace, defense, and government sectors grew by 9%, supported by strength in the US and Europe and ongoing investments in technology.

Software and Services Growth

Software and services accounted for approximately 36% of Keysight's revenue, with design engineering software orders growing double digits.

Capital Allocation and Share Repurchase

Keysight repurchased 1,042,000 shares this quarter at an average price of approximately $144, totaling $150 million.

Keysight Technologies (KEYS) Earnings, Revenues Date & History

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KEYS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 19, 2025	2025 (Q3)	1.67 / -	1.57	―	―	―
May 20, 2025	2025 (Q2)	1.65 / 1.70	1.41	20.57% (+0.29)
Feb 25, 2025	2025 (Q1)	1.69 / 1.82	1.63	11.66% (+0.19)
Nov 19, 2024	2024 (Q4)	1.57 / 1.65	1.99	-17.09% (-0.34)
Aug 20, 2024	2024 (Q3)	1.35 / 1.57	2.19	-28.31% (-0.62)
May 20, 2024	2024 (Q2)	1.39 / 1.41	2.12	-33.49% (-0.71)
Feb 20, 2024	2024 (Q1)	1.59 / 1.63	2.02	-19.31% (-0.39)
Nov 20, 2023	2023 (Q4)	1.87 / 1.99	2.14	-7.01% (-0.15)
Aug 17, 2023	2023 (Q3)	2.04 / 2.19	2.01	8.96% (+0.18)
May 16, 2023	2023 (Q2)	1.95 / 2.12	1.83	15.85% (+0.29)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

KEYS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 20, 2025	$162.80	$162.47	-0.20%
Feb 25, 2025	$172.17	$160.36	-6.86%
Nov 19, 2024	$152.13	$165.48	+8.78%
Aug 20, 2024	$138.57	$157.81	+13.88%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.