Keysight Technologies Sets New Milestones as Fiscal Q2 2025 Revenues Soar
On May 20, 2025, Keysight Technologies delivered impressive financial results for its fiscal second quarter of 2025. The company's President and CEO, Satish Dhanasekaran, announced revenue of $1.3 billion and earnings per share of $1.70, surpassing the high end of their guidance.
Keysight's strong performance was driven by continued momentum in its Communications Solutions Group (CSG) and a return to growth in the Electronic Industrial Solutions Group (EISG). The demand environment remained solid, with orders growing 8% year-over-year and 4% sequentially to $1.3 billion.
"We're confident in our market leadership, the strength of our operating model, and our ability to generate value for our stakeholders," said Satish Dhanasekaran, President and CEO of Keysight Technologies. "Our multiyear investments have given us a diversified global supply chain with minimal exposure in China."
Keysight's CSG segment saw commercial communications orders grow double digits, driven by robust demand in wireline, where the ongoing data center infrastructure expansion is driving order strength. The company also witnessed continued deployment of 400 and 800-gig Ethernet technologies in AI data center applications.
The depth and breadth of Keysight's capabilities in electrical and optical protocols, as well as its position to enable innovation in high-performance computing, memory, and networking, were highlighted by Satish Dhanasekaran. This was further demonstrated at the OFC conference, where Keysight showcased the industry's first solution for 448 gig per lane optical transmission.
Wireless orders also grew in Q2, with a steady pace of R&D activity related to 5G advanced and early 6G research. Investment in non-terrestrial networks continued, while smartphone supply chain activity remained stable. Keysight's new digital twin and system emulation capabilities are enabling non-terrestrial applications and expanding customer engagements.
In the aerospace, defense, and government segment, orders grew this quarter, driven by strength in the U.S. and Europe. Ongoing investment in spectrum operations and space applications drove growth, despite the uncertainty surrounding the U.S. continuing resolution for most of the year.
"We entered the second half with a healthy pipeline of opportunity and strong customer engagements," said Satish Dhanasekaran. "Our business results demonstrate the resilience of our business and the durability of our financial operating model."
Keysight's capital allocation priorities remain unchanged, focusing on long-term investments while pursuing a balanced return of capital enabled by its strong free cash flow conversion. The company has returned over $1.7 billion or roughly 50% of free cash flow to investors via repurchases over the past 12 quarters.
Overall, Keysight Technologies' Q2 2025 financial results showcase the company's strength and resilience in a dynamic market environment.
