Keysight Reports Strong Profit and Revenue for Q3 2025, Raises Full-Year Outlook

Keysight (KEYS.US) reported strong financial results for the third fiscal quarter of 2025, exceeding revenue and earnings per share guidance. The company posted revenue of $1.35 billion, an 11% increase compared to $1.22 billion in the third quarter of 2024. Non-GAAP net income reached $297 million, or $1.72 per share, surpassing the analyst EPS estimate of $1.68 and growing 8% from $275 million, or $1.57 per share, in the prior year.

Strong Segment Performance

Both primary reporting segments, Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG), contributed significantly to the revenue growth. CSG reported revenue of $940 million, up 11% year-over-year, driven by 13% growth in commercial communications and 8% growth in aerospace, defense, and government sectors.

EISG also showed robust performance, with revenue increasing 11% from the prior year to $412 million. This growth was broad-based, reflecting strength across the semiconductor, general electronics, and automotive and energy markets.

Management Outlook

Keysight's management expressed confidence in continued solid demand and strong customer engagements. For the fourth fiscal quarter of 2025, the company expects revenue to be in the range of $1.37 billion to $1.39 billion.

Non-GAAP earnings per share for the fourth fiscal quarter of 2025 are projected to be between $1.79 and $1.85. For the full fiscal year 2025, Keysight anticipates approximately 7% revenue growth and approximately 13% non-GAAP earnings per share growth at the midpoint of the fourth-quarter guidance.