Keysight Technologies Tops Quarterly Profit Estimates, Forecasts Strong Second Quarter

Keysight Technologies (NYSE: KEYS) has reported strong first quarter fiscal 2025 results, topping analysts' profit estimates and forecasting a robust second quarter. The company's revenue returned to growth, driven by strength in commercial communications and aerospace, defense, and government segments. Expenses were well-managed, and orders grew for the second consecutive quarter. Keysight's management attributed the company's success to its robust innovation pipeline and deep engagement with customers.



In the first quarter of fiscal 2025, Keysight reported revenue of $1.30 billion, compared with $1.26 billion in the first quarter of 2024, reflecting a 3% increase. Operating margin was 27.3%, compared with 28.2% in the first quarter of 2024. Orders grew for the second consecutive quarter, up 4% year-over-year to $1.3 billion. Software and services revenue accounted for ~40% of total revenue, with recurring software and services revenue at ~31% of total revenue.



Keysight's management expects the company's strong performance to continue in the second quarter of fiscal 2025. The company forecasts revenue in the range of $1.27 billion to $1.29 billion and non-GAAP earnings per share in the range of $1.61 to $1.67. Keysight's President and CEO, Satish Dhanasekaran, stated, "Keysight executed well and delivered first quarter results that were above expectations under market conditions which remained consistent with our expectations."



Analysts have also weighed in on Keysight Technologies' strong performance. The average analyst rating for Keysight Technologies stock from 9 stock analysts is "Buy," indicating that analysts believe this stock is likely to outperform the market over the next twelve months. The average target price for Keysight Technologies stock is $182.22, with a low estimate of $160 and a high estimate of $200.

In conclusion, Keysight Technologies' strong first quarter fiscal 2025 results and positive outlook for the second quarter demonstrate the company's ability to execute and deliver under challenging market conditions. With a robust innovation pipeline, deep customer engagement, and effective expense management, Keysight Technologies is well-positioned to continue its strong performance in the coming quarters.