Keysight Technologies reported fourth‑quarter and full‑year 2025 results that surpassed analyst expectations, with revenue rising 10% year‑over‑year to $1.419 billion and non‑GAAP earnings per share of $1.91, a $0.06 beat over the consensus estimate of $1.85.
The growth was driven by the Communications Solutions Group, which generated $990 million in revenue – an 11% increase – and the Electronic Industrial Solutions Group, which delivered $429 million, up 9% year‑over‑year. Combined, the two segments accounted for 90% of total revenue and reflected strong demand for AI data‑center infrastructure and defense‑modernization solutions.
Margin performance remained robust: gross margin held at 64% and operating margin at 26% for the quarter, while the full‑year core operating margin climbed to 26.6%, an improvement of 90 basis points versus the 25.6% margin reported for FY24. The company’s cost‑control program and higher mix of high‑margin contracts helped offset modest price pressure in legacy product lines.
Management guided for the first quarter of fiscal 2026 with revenue expected between $1.530 billion and $1.550 billion, representing 19% year‑over‑year growth at the midpoint. Non‑GAAP EPS guidance for Q1 FY26 was projected at $1.95 to $2.01, up from the prior guidance range of $1.90 to $1.98. The outlook signals confidence in sustained demand and the successful integration of recent acquisitions.
Satish Dhanasekaran, Keysight’s President and CEO, said the quarter “delivered an outstanding result and strong close to the fiscal year, returning the company to full‑year growth with order momentum accelerating through the year.” He added that “orders grew 14%, revenue increased 10%, and EPS rose 16%, underscoring our leadership across markets and the continued demand for our differentiated solutions.”
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