Keysight 2025 Q4 Earnings Beats Expectations as Net Income Surges 413.7%

Keysight Technologies (KEYS) reported fiscal 2025 Q4 earnings on Nov 24, 2025, with revenue rising 10.3% to $1.42 billion and EPS of $1.34, reversing a prior-year loss. The company also issued optimistic Q1 2026 guidance, forecasting revenue between $1.53–$1.55 billion and EPS of $1.95–$2.01, both above consensus estimates.

Revenue

Keysight’s Q4 revenue reached $1.42 billion, reflecting robust demand across its core markets. The Communications Solutions Group led with $990 million in revenue, driven by AI data center infrastructure investments and defense modernization. The Electronic Industrial Solutions Group also saw growth, generating $429 million, while the Aerospace, Defense and Government segment contributed $330 million.

Earnings/Net Income

The company returned to profitability with EPS of $1.34 in Q4 2025, a 419.0% improvement from a $0.42 loss in Q4 2024. Net income surged to $229 million, a 413.7% increase from a $73 million loss in the prior year, underscoring Keysight’s operational turnaround.

Post Earnings Price Action Review

The strategy of buying Keysight shares after its revenue raise quarter-over-quarter on the financial report released date and holding for 30 days showed favorable performance over the past three years. This backtest analysis revealed an overall return of 20.56%, with consistent gains across 10 quarters, including an 11.02% rise following the Q3 2023 report. The most recent Q2 2025 report added a 2.87% gain, maintaining the strategy’s positive trajectory.

CEO Commentary

Satish Dhanasekaran, President, CEO & Director, highlighted Keysight’s Q4 2025 outperformance with 14% order growth, 10% revenue increase, and 16% EPS rise, driven by AI, nonterrestrial networks, 6G, semiconductors, and defense. Strategic priorities include acquiring Spirent, Synopsys Optical Solutions Group, and Ansys Power Artist to enhance solutions and expand customer value. The CEO emphasized strong free cash flow ($1.3B in FY25) for R&D, acquisitions, and $1.5B share repurchase authorization. He expressed optimism about 2026, citing robust pipelines, market-aligned innovations, and operational discipline, stating, “We’re confident in the fundamentals of our business model and ability to deliver long-term shareholder value.”

Guidance

Keysight expects Q1 2026 revenue of $1.53–$1.55B (19% YoY growth at midpoint, 10% core growth) and EPS of $1.95–$2.01. For FY26, revenue growth (excluding acquisitions) is projected at or above the 5–7% long-term target, with EPS growth meeting or exceeding 10%. Acquisitions are expected to add $375M in FY26, with $100M in synergies.

Additional News

Keysight announced a $1.5 billion share repurchase program, effective immediately, reflecting confidence in its capital structure. The company also completed strategic acquisitions of Spirent and Synopsys Optical Solutions Group to bolster its test and measurement capabilities. Additionally, VP Lisa M. Poole surrendered 45 shares on Nov 21 to cover option exercise costs, a routine transaction unrelated to earnings performance.