•
Apr 30

Keysight Technologies Q2 2025 Earnings Report

Keysight Technologies beat revenue and EPS expectations in Q2 2025 and raised its full-year growth outlook.

Key Takeaways

Keysight Technologies delivered strong Q2 2025 results with revenue and earnings exceeding guidance. Net income more than doubled compared to the same quarter last year, driven by strength across key segments including commercial communications and aerospace. The company raised its full-year outlook, reflecting confidence in sustained demand.

Achieved second quarter revenue and earnings per share above the high end of guidance.

Reported total revenue of $1.31 billion, a 7% increase compared to the prior year.

Communications Solutions Group revenue grew 9%, and Electronic Industrial Solutions Group revenue grew 5%.

Raised full-year growth expectations to the midpoint of the long-term 5-7% target.

Total Revenue
$1.31B
Previous year: $1.22B
+7.4%
EPS
$1.7
Previous year: $1.41
+20.6%
Total Orders
$1.32B
Previous year: $1.22B
+8.0%
Free Cash Flow
$457M
Previous year: $74M
+517.6%
Operating Cash Flow
$484M
Previous year: $110M
+340.0%
Gross Profit
$814M
Previous year: $800M
+1.8%
Cash and Equivalents
$3.12B
Previous year: $1.66B
+88.2%
Free Cash Flow
$457M
Previous year: $74M
+517.6%
Total Assets
$10.5B
Previous year: $8.99B
+17.4%

Keysight Technologies

Keysight Technologies

Keysight Technologies Revenue by Segment

Forward Guidance

Keysight expects Q3 2025 revenue between $1.305B and $1.325B with non-GAAP EPS between $1.63 and $1.69.

Positive Outlook

  • Raised full-year revenue growth expectations to midpoint of 5-7% long-term target.
  • Strong funnel of opportunities supports confidence in future quarters.
  • Continued robust demand in commercial and aerospace/defense markets.
  • Revenue and EPS in Q2 exceeded the high end of guidance.
  • Strong cash generation and balance sheet support investments.

Challenges Ahead

  • Macroeconomic uncertainty continues to be monitored.
  • Automotive and energy segment showed a decline in revenue.
  • Operating margin in CSG and EISG slightly down YoY.
  • Overall gross margin slightly declined compared to Q2 2024.
  • No reconciliation provided for GAAP EPS guidance due to estimation limitations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income