Keysight Q4 Earnings Strengthen, Guidance Raised
Keysight Q4 earnings showed revenue and order strength on Nov. 24, 2025; it raised Q1 guidance and unveiled a $1.5 billion buyback that lifted shares.
KEY TAKEAWAYS
- Q4 revenue was $1.4 billion and orders totaled $1.5 billion, showing AI and industrial demand.
- Management raised Q1 revenue guidance to $1.5 billion and non-GAAP EPS to about $2.0.
- The company announced a $1.5 billion share repurchase program to support EPS and capital return.
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Keysight Technologies (NYSE: KEYS) reported fourth-quarter and full-year 2025 results on Nov. 24, 2025. Keysight Q4 earnings showed stronger revenue and rising orders driven by demand in AI infrastructure, semiconductor testing, and industrial sectors. The company raised its Q1 2026 revenue and profit guidance, and shares rose more than 13% in after-hours trading.
Quarterly and Full-Year Results
The company said in a press release that fourth-quarter revenue reached $1.42 billion, up 10.0% year-over-year. Non-GAAP earnings per share (EPS) rose 16.0% to $1.91, while GAAP EPS was $1.33. Non-GAAP net income was $331 million, and GAAP net income was $229 million. Orders totaled $1.53 billion, up 14.0% year-over-year, according to the earnings call.
The Communications Solutions Group generated $990 million in revenue, an 11.0% increase, while the Electronic Industrial Solutions Group posted $429 million, up 9.0%. Gross margin was 64.0%, and operating margin was 26.0%.
For fiscal 2025, Keysight reported revenue of $5.37 billion, up from $5.0 billion in 2024. Full-year non-GAAP EPS rose to $7.16 from $6.27, and GAAP net income increased to $846 million from $614 million. Free cash flow was $1.3 billion, and cash and cash equivalents totaled $1.87 billion as of Oct. 31, 2025.
Guidance, Buyback, and Strategy
On the earnings call, management set Q1 2026 revenue guidance at $1.53 billion to $1.55 billion, implying about 19.0% year-over-year growth and roughly 10.0% excluding recent acquisitions. Non-GAAP EPS guidance ranged from $1.95 to $2.01. The company expects full-year 2026 revenue growth of 5.0% to 7.0%. Management said the impact of August tariffs will be fully mitigated in Q1 2026, one quarter earlier than previously communicated.
Keysight’s fiscal 2025 acquisitions—Spirent, Optical Solutions Group, and PowerArtist—are expected to add $375 million in revenue in 2026 and generate about $100 million in synergies. The company announced a $1.5 billion share repurchase program and projected capital expenditures around $160 million for 2026. The modeled non-GAAP effective tax rate is 14.0%. Management confirmed no material regulatory actions or approvals had been disclosed in the prior 72 hours and that the acquisitions are complete.
Shares rose more than 13.0% in after-hours trading following the results and management commentary. Multiple analysts issued upgrades and raised forecasts the next day.
“Keysight delivered an outstanding quarter and strong close to the fiscal year, returning the company to full-year growth with order momentum accelerating through the year,” said Satish Dhanasekaran, president and CEO.
