Keysight Technologies (NYSE: KEYS) on Monday Nov. 24 said it capped its fiscal year with its best quarterly results since the business slowdown two years ago. The Santa Rosa-based electronics test-and-measurement equipment and software company reported 14% order growth, a 10% revenue increase to $1. 42 billion, and 16% higher adjusted earnings per share. Those results were attributed to demand for artificial intelligence data center testing, early 6G research, defense modernization, and three major acquisitions completed in October. Revenue for the quarter, ended Oct. 31, reached $1. 42 billion, 10% higher than last year and well above the Zacks Investment Research consensus estimate of $1. 39 billion. Adjusted earnings per share rose 16% to $1. 91, beating the $1. 85 forecast. The company’s Communications Solutions Group posted $990 million in revenue, topping the projected $965 million, while the Electronic Industrial Solutions Group delivered $429 million versus the expected $414 million. “Keysight delivered an outstanding fourth-quarter results exceeding the high end of our guidance, orders grew 14%, revenue increased 10% and EPS rose 16%,” said President and CEO Satish Dhanasekaran on Monday’s earnings call. For the full year, revenue grew 8% to $5. 375 billion, adjusted earnings per share climbed 14% to $7. 16, and free cash flow hit a record $1. 3 billion. Executives highlighted accelerating demand tied to artificial intelligence and next-generation technologies. Dhanasekaran noted that “roughly half of our wireline business” is now linked to the AI ecosystem, with customers simultaneously advancing 400G, 800G, and 1. 6T technologies, referring to the billions and trillions of bits of data they’re capable of handling. The recent acquisition of Spirent Communications was called a “crown jewel,” particularly for its unique satellite-simulation and positioning capabilities critical to autonomous systems, aerospace, and defense. Chief Financial Officer Neil Dougherty said the three completed acquisitions Spirent, Synopsys’ Optical Solutions Group, and Ansys’ PowerArtist are expected to contribute approximately $375 million in revenue in fiscal 2026. In wireless, Keysight has “doubled our 6G collaborations over the past year,” Narayanan said, partnering on channel sounding, digital-twin network modeling, terahertz spectrum research, and advanced MIMO phased-array antenna design. Phased arrays are antenna arrays with multiple antennas. MIMO means multiple input multiple output. 6G, currently in early research, is the next-generation standard for cell phones and other wireless communication after 5G. It aims to deliver by 2030 terabit-per-second speeds, ultra-low latency (delay between request and response), and native integration of AI, sensing and connectivity. The aerospace, defense, and government segment delivered record orders and 8% annual revenue growth, fueled by “defense modernization, enhanced deterrence capabilities and operational readiness,” Dhanasekaran added. Looking to fiscal 2026, management expects revenue growth at or above the high end of the 5%-7% long-term target, with particular strength in AI infrastructure, next-generation networking and semiconductors. While the company’s previous 31%-32% operating-margin target will take longer to achieve following the 2023-2024 downturn, Dougherty emphasized a “durable financial model” that supports sustained growth. Keysight also announced a new $1. 5 billion share repurchase authorization. Since 2023, the company has completed over $1. 5 billion in such purchases, representing about 45% of free cash flow generated. “Technology innovation is driving demand for high-performance solutions across a broad range of industries,” Dougherty said. “With our differentiated portfolio, technology leadership and durable financial model, we are well positioned to deliver sustained revenue and earnings growth.” In other company news, the board elected former Fortinet CFO Keith Jensen as a director. Keysight’s share price rose nearly 3% to $177. 67 Monday. Jeff Quackenbush joined North Bay Business Journal in May 1999. He covers primarily wine, construction and real estate. Reach him at jeff@nbbj. news or 707-521-4256.
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Keysight has best quarter in years with AI, 6G wireless push
