Keysight 2025 Q3 Earnings Revenue Grows 11.1% but Net Income Falls 50.9%

Keysight Technologies reported mixed results in its Q3 2025 earnings, with revenue rising above expectations but earnings declining sharply. The company’s revenue increased by 11.1% year-over-year to $1.35 billion, and its Q4 guidance aligned with or slightly exceeded consensus estimates.

Revenue
Keysight’s total revenue for Q3 2025 reached $1.35 billion, reflecting a robust 11.1% increase compared to the same period in 2024. The Measurement Solutions segment, which includes CSG and EISG, drove the growth, contributing $1.35 billion in total. Specifically, the Communications Solutions Group (CSG) posted $940 million in revenue, while the Electronic Instruments and Systems Group (EISG) brought in $412 million. The performance across all segments underscores the company’s strong market position and demand for its core offerings.

Earnings/Net Income
Despite the revenue increase, Keysight's earnings declined significantly. The company’s EPS dropped 50.2% year-over-year to $1.11 in Q3 2025, compared to $2.23 in Q3 2024. Net income also fell, dropping 50.9% to $191 million from $389 million in the prior-year quarter. While the decline is notable, the company has maintained profitability for 12 consecutive years, demonstrating resilience in its business operations.

Price Action
Following the earnings release, KEYS experienced a modest decline, with the stock falling 1.35% during the latest trading day, 2.06% over the past week, and 2.46% month-to-date.

Post-Earnings Price Action Review
The performance of a strategy that involved buying KEYS after an earnings beat and selling after 30 days showed moderate returns. The approach yielded a 23.74% return, although it trailed the benchmark by 51.06%. The strategy was characterized by a maximum drawdown of 0.00% and a Sharpe ratio of 0.29, indicating a low-risk profile with steady returns.

CEO Commentary
Keysight Technologies CEO Satish Dhanasekaran emphasized the company’s strong Q3 performance, highlighting the 11.1% year-over-year revenue growth and exceeding earnings expectations. He noted the company’s momentum in key markets such as communications, semiconductor, and aerospace, while acknowledging macroeconomic challenges. Dhanasekaran reiterated a commitment to innovation and customer-centric solutions as key drivers of growth, with strategic investments in R&D and market expansion aimed at strengthening Keysight’s competitive edge.

Guidance
Looking ahead, Keysight provided guidance for Q4 2025, forecasting an EPS range of $1.79–$1.85 and full-year 2025 EPS of $7.09. The company expects Q4 revenue of $1.4 billion and full-year revenue growth of approximately 7%. The EPS guidance for Q4 is slightly above the consensus estimate of $1.808, while the revenue forecast is in line with the $1.4 billion consensus.

Additional News
Keysight is making significant strides in its strategic and product developments. The company announced a recommended cash acquisition of Spirent Communications, a move that could enhance its testing and measurement capabilities. Additionally, Keysight announced executive leadership transitions and new appointments, signaling internal restructuring aimed at driving future growth. In the renewable energy space, the company signed a virtual power purchase agreement to support sustainable development. Keysight also unveiled several new test solutions for AI infrastructure, 6G, and quantum computing, reinforcing its commitment to innovation across key technology sectors.