Keysight Technologies Reports 7% Revenue Growth to $1.306 Billion in Q2 FY 2025

Keysight Technologies, Inc. reported a notable increase in financial performance for the second quarter of fiscal year 2025, with total revenue reaching $1.306 billion, a 7% increase from $1.216 billion in the same period last year. For the first half of the fiscal year, revenue rose to $2.604 billion, up 5% from $2.475 billion. The company's net income also saw significant growth, climbing to $257 million for the quarter, compared to $126 million a year earlier, and $426 million for the six-month period, up from $298 million. This increase in profitability was attributed to higher revenue, gains on derivative instruments, and a lower effective tax rate.

The company experienced a 10% rise in research and development expenses, totaling $250 million for the quarter, as it continues to invest in key growth opportunities, particularly in next-generation technologies such as 5G and AI. Selling, general, and administrative expenses remained stable at $360 million for the quarter. The operating income for the three months ended April 30, 2025, was $207 million, reflecting a 17% increase from $177 million in the prior year, driven by improved operational efficiency.

Keysight's strategic developments included the acquisition of ESI Group, which was completed in early 2024 for a total of $935 million. This acquisition is expected to enhance Keysight's capabilities in the electronic design automation market. The company also announced plans to acquire Spirent Communications PLC for approximately $1.463 billion, which is anticipated to close in the third quarter of fiscal 2025, pending regulatory approvals. These acquisitions are part of Keysight's strategy to expand its product offerings and market reach.

Operationally, Keysight reported a headcount of approximately 15,400 employees as of April 30, 2025, consistent with the previous year. The company noted an increase in orders, with total orders for the quarter reaching $1.316 billion, an 8% increase year-over-year. Revenue growth was observed across all geographic regions, particularly in the Americas and Asia Pacific, although Europe experienced a decline. The Communications Solutions Group (CSG) and Electronics Industrial Solutions Group (EISG) contributed 70% and 30% of total revenue, respectively, with both segments showing positive growth.

Looking ahead, Keysight remains optimistic about its growth trajectory, driven by ongoing investments in R&D and the demand for advanced technologies. The company is closely monitoring macroeconomic factors, including tariffs and geopolitical tensions, which could impact its operations. Keysight's management expressed confidence in the long-term growth trends of its markets and its ability to adapt to changing conditions, positioning itself for continued success in the evolving technology landscape.