Keysight 2025 Q4 Earnings 413.7% Net Income Surge and 10% Revenue Growth

Keysight Technologies (KEYS) delivered a strong finish to fiscal 2025, surpassing revenue and earnings expectations. The company reported Q1 2026 guidance above Wall Street estimates, signaling optimism for continued growth in AI infrastructure and semiconductor demand.

Revenue

Keysight’s Q4 2025 revenue reached $1.42 billion, a 10.3% increase from $1.29 billion in the prior-year period. The Communications Solutions Group led the revenue growth with $990 million, driven by AI data center investments and defense modernization. The Electronic Industrial Solutions Group contributed $429 million, reflecting 9% year-over-year expansion. Aerospace, Defense, and Government segments added $330 million, while Commercial Communications revenue totaled $660 million.

Earnings/Net Income

The company returned to profitability with EPS of $1.34, reversing a $0.42 loss in 2024 Q4—a 413.7% positive swing. Net income surged to $229 million from a $73 million loss, marking a remarkable turnaround and sustained profitability for 12 consecutive years.

Price Action

Keysight’s stock climbed 2.12% on the latest trading day, 1.23% for the week, and 5.52% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Keysight shares after a revenue increase quarter-over-quarter and holding for 30 days underperformed, delivering -10.75% returns over three years. This approach, with a Sharpe ratio of -0.12 and a maximum drawdown of 0.00%, highlights its high-risk profile and lack of upside potential.

CEO Commentary

CEO Satish Dhanasekaran highlighted 14% order growth, 10% revenue growth, and 16% EPS growth, driven by AI infrastructure and 400G to 1.6T optical upgrades. Strategic priorities include expanding AI data center offerings, leveraging $1.5B in share repurchases, and advancing software-centric solutions through acquisitions.

Guidance

Keysight guided Q1 2026 revenue of $1.53–1.55B (19% YoY growth at midpoint) and EPS of $1.95–2.01. FY2026 revenue growth (excluding acquisitions) is expected to exceed 5–7% targets, with $375M in incremental revenue from acquisitions.

Additional News

Keysight announced a $1.5B share repurchase program, signaling confidence in its financial health. Recent strategic acquisitions, including Spirent and Synopsys Optical Solutions Group, are expected to drive long-term growth. The company also emphasized mitigating tariffs by Q1 2026 and maintaining a 14% tax rate.