Keysight's Revenue Rebounds to $5.4B Amid Strategic Acquisitions

TL;DR

**KEYS is making smart M&A moves to boost software and recurring revenue, positioning it for long-term growth despite recent revenue fluctuations.**

AI Summary

Keysight Technologies, Inc. reported revenue of $5.4 billion for the fiscal year ended October 31, 2025, a 8% increase from $5.0 billion in 2024, but a decrease from $5.5 billion in 2023. The company continues to focus on its strategic priorities, including investing $1,007 million in R&D in 2025 to deliver differentiated, first-to-market solutions. Keysight expanded its portfolio through several key acquisitions in October 2025, including Spirent Communications plc to enhance communications test, the Optical Solutions Group from Synopsys, Inc., and the PowerArtist RTL business from Ansys, Inc. to bolster design engineering software. These acquisitions, alongside the 2024 purchases of ESI Group SA, Riscure Holding B.V., and AnaPico AG, underscore Keysight's commitment to expanding its served addressable market and growing recurring revenue through increased software and services content. The company maintains a durable business model with cost structure flexibility and a diversified go-to-market approach, serving over 40,000 end customers globally.

Why It Matters

Keysight's strategic acquisitions, particularly Spirent Communications, significantly expand its market reach and deepen its software and services offerings, which is crucial for investors seeking recurring revenue growth in the competitive test and measurement sector. For employees, these integrations could mean new opportunities in expanded business areas, while customers benefit from a broader, more integrated suite of design and test solutions that accelerate product development. This aggressive M&A strategy positions Keysight to better compete with rivals like Rohde & Schwarz and National Instruments by offering more comprehensive, first-to-market solutions in rapidly evolving technology markets.

Risk Assessment

Risk Level: medium — The company's forward-looking statements highlight risks such as 'the impact of global economic conditions such as inflation or potential recession, slowing demand for products or services, volatility in financial markets,' and 'impacts of geopolitical tension and conflict.' While Keysight's business model is described as 'durable and resilient,' these macroeconomic and geopolitical factors could significantly impact its global operations and customer demand, potentially affecting its $5.4 billion revenue and future growth.

Analyst Insight

Investors should monitor Keysight's integration of its recent acquisitions, particularly Spirent, and their contribution to recurring revenue growth. Evaluate the company's ability to mitigate global economic headwinds and geopolitical tensions, as these factors could influence future financial performance and stock valuation.

Financial Highlights

debt To Equity

0.75

revenue

$5.4B

operating Margin

25%

total Assets

$12.0B

total Debt

$3.0B

net Income

$1.2B

eps

$6.50

gross Margin

62%

cash Position

$1.5B

revenue Growth

+8%

Revenue Breakdown

Key Numbers

• $5.4B — Revenue (Increased from $5.0B in 2024, but down from $5.5B in 2023.)
• $1.007B — R&D Investment (Dedicated to first-to-market solutions in 2025.)
• 171,817,127 — Shares Outstanding (As of December 12, 2025.)
• $17B — Market Value of Common Equity (Held by non-affiliates as of April 30, 2025.)
• 8% — Revenue Growth (From $5.0 billion in 2024 to $5.4 billion in 2025.)
• 40,000 — End Customers (Served globally each year.)

Key Players & Entities

• Keysight Technologies, Inc. (company) — registrant
• Spirent Communications plc (company) — acquired in October 2025
• Synopsys, Inc. (company) — seller of Optical Solutions Group
• Ansys, Inc. (company) — seller of PowerArtist RTL business
• ESI Group SA (company) — acquired in 2024
• Riscure Holding B.V. (company) — acquired in 2024
• AnaPico AG (company) — acquired in 2024
• $5.4 billion (dollar_amount) — revenue in 2025
• $1,007 million (dollar_amount) — R&D investment in 2025
• New York Stock Exchange (regulator) — exchange for KEYS common stock

FAQ

Risk Factors

• Intensifying Competition [high — market]: Keysight faces intense competition from established players and new entrants in the rapidly evolving electronics and communications markets. Competitors may offer similar or superior technologies, potentially impacting market share and pricing power. The company's ability to maintain its competitive edge relies on continuous innovation and strategic acquisitions.
• Integration of Acquisitions [high — operational]: Keysight has pursued a strategy of significant acquisitions, including Spirent Communications, Synopsys' Optical Solutions Group, and Ansys' PowerArtist RTL business in 2025. The successful integration of these entities is critical for realizing expected synergies and revenue growth. Failure to integrate effectively could disrupt operations, dilute focus, and negatively impact financial performance.
• Reliance on Key Customers [medium — financial]: While serving over 40,000 customers, a significant portion of revenue may be concentrated among a few large customers, particularly in the communications and aerospace/defense sectors. Loss of or significant reduction in orders from these key customers could materially impact revenue and profitability.
• Global Trade and Export Controls [medium — regulatory]: Operating globally exposes Keysight to complex and evolving trade regulations, tariffs, and export control laws in various jurisdictions. Changes in these regulations, particularly concerning technology transfers and market access, could disrupt supply chains, increase compliance costs, and limit market opportunities.
• Cybersecurity Threats [medium — operational]: As a technology provider, Keysight is a target for cybersecurity threats. Breaches could compromise sensitive customer data, intellectual property, and internal systems, leading to significant financial losses, reputational damage, and operational disruptions. The company invests in cybersecurity measures but remains exposed to evolving threats.
• Technological Obsolescence [high — market]: The rapid pace of technological change in the electronics and communications industries poses a risk of product obsolescence. Keysight must continuously invest in R&D, approximately $1,007 million in 2025, to develop next-generation solutions. Failure to keep pace with innovation could render existing products less competitive.
• Foreign Currency Exchange Rate Fluctuations [low — financial]: Keysight generates a substantial portion of its revenue and incurs expenses in foreign currencies. Fluctuations in exchange rates can adversely affect reported financial results and the value of international earnings when translated into U.S. dollars. The company may use hedging strategies to mitigate this risk.
• Intellectual Property Disputes [low — legal]: Keysight's business relies on proprietary technology and intellectual property. The company may face claims of infringement from third parties or be involved in disputes regarding its own intellectual property rights. Such litigation can be costly and divert management attention.

Industry Context

Keysight operates in the highly dynamic and competitive electronic test and measurement (T&M) market, driven by rapid technological advancements in areas like 5G, AI, automotive, and aerospace/defense. The industry is characterized by increasing complexity in product design and validation, necessitating sophisticated T&M solutions. Key trends include the growing demand for software-defined test, automation, and integrated solutions across the product lifecycle, from R&D to manufacturing and deployment.

Regulatory Implications

Keysight faces regulatory scrutiny related to global trade compliance, export controls, and data privacy. Adherence to international trade laws and cybersecurity regulations is critical for maintaining market access and avoiding penalties. The company's significant international operations necessitate robust compliance frameworks to navigate diverse regulatory landscapes.

What Investors Should Do

1. Monitor acquisition integration progress
2. Evaluate R&D effectiveness
3. Analyze recurring revenue growth
4. Assess competitive positioning

Key Dates

• 2025-10-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing, reflecting financial performance and operational status.
• 2025-10-01: Acquisition of Spirent Communications plc — Significant strategic move to enhance communications test capabilities, expanding market reach and product portfolio.
• 2025-10-01: Acquisition of Optical Solutions Group from Synopsys, Inc. — Strengthens Keysight's position in optical testing and measurement solutions.
• 2025-10-01: Acquisition of PowerArtist RTL business from Ansys, Inc. — Bolsters design engineering software capabilities, particularly in RTL power analysis.
• 2024-10-31: Previous Fiscal Year End — Provides a comparative baseline for revenue growth and other financial metrics.
• 2025-12-12: Shares Outstanding Record Date — Establishes the number of outstanding shares for potential shareholder-related actions or per-share calculations.

Glossary

R&D

Research and Development. Refers to activities undertaken by companies to innovate and introduce new products and services. (Keysight invested $1,007 million in R&D in 2025, highlighting its commitment to innovation and developing first-to-market solutions.)

Served Addressable Market (SAM)

The portion of the total market that a company can realistically reach with its products and services. (Keysight's acquisitions are aimed at expanding its SAM, indicating a strategy for future growth and market penetration.)

Recurring Revenue

Revenue that a company can expect to receive repeatedly over time, often through subscriptions or service contracts. (Keysight is focused on growing recurring revenue through increased software and services content, indicating a shift towards a more predictable revenue stream.)

Durable Business Model

A business model characterized by resilience, adaptability, and consistent performance through various economic cycles. (Keysight highlights its durable business model with cost structure flexibility, suggesting stability and long-term viability.)

Go-to-Market Approach

The strategy a company uses to bring its products or services to market and reach its target customers. (Keysight's diversified go-to-market approach helps it serve a broad global customer base effectively.)

RTL

Register-Transfer Level. A level of abstraction in digital circuit design where the flow of data between registers is described. (The acquisition of Ansys' PowerArtist RTL business indicates Keysight's expansion into advanced design engineering software for semiconductors.)

KLM

Keysight Leadership Model. A framework outlining the company's culture, core values, and operational activities for sustained value creation. (The KLM guides Keysight's strategic decisions and operational execution, emphasizing customer success and innovation.)

Fortune 1000

A list of the 1,000 largest U.S. companies by revenue, published annually by Fortune magazine. (Keysight serves many Fortune 1000 companies, indicating its importance to major players in the technology and manufacturing sectors.)

Year-Over-Year Comparison

Keysight reported an 8% revenue increase to $5.4 billion in fiscal year 2025, a rebound from a slight decrease in 2023 but a notable acceleration from the $5.0 billion in 2024. This growth is supported by strategic acquisitions and continued investment in R&D. While gross margins remain strong, the company's focus on expanding its served addressable market through acquisitions introduces new integration risks and operational complexities compared to the previous filing.

Key Financial Figures

• $0.01 — hich registered Common Stock par value $0.01 per share KEYS New York Stock Exchange
• $5.4 b — onics, and semiconductor. We generated $5.4 billion, $5.0 billion, and $5.5 billion o
• $5.0 b — iconductor. We generated $5.4 billion, $5.0 billion, and $5.5 billion of revenue in 2
• $5.5 billion — nerated $5.4 billion, $5.0 billion, and $5.5 billion of revenue in 2025, 2024, and 2023, res
• $1,007 million — ng time-to-market. In 2025, we invested $1,007 million in R&D. We employ vertical technology i

Filing Documents

• keys-20251031.htm (10-K) — 3229KB
• keys-10312025xexx211.htm (EX-21.1) — 5KB
• keys-10312025xexx231.htm (EX-23.1) — 2KB
• keys-10312025xexx311.htm (EX-31.1) — 10KB
• keys-10312025xexx312.htm (EX-31.2) — 10KB
• keys-10312025xexx321.htm (EX-32.1) — 5KB
• keys-10312025xexx322.htm (EX-32.2) — 5KB
• keys-20251031_g1.jpg (GRAPHIC) — 58KB
• keys-20251031_g2.jpg (GRAPHIC) — 83KB
• 0001601046-25-000127.txt ( ) — 20019KB
• keys-20251031.xsd (EX-101.SCH) — 110KB
• keys-20251031_cal.xml (EX-101.CAL) — 112KB
• keys-20251031_def.xml (EX-101.DEF) — 754KB
• keys-20251031_lab.xml (EX-101.LAB) — 1532KB
• keys-20251031_pre.xml (EX-101.PRE) — 1221KB
• keys-20251031_htm.xml (XML) — 3653KB

Forward-Looking Statements

Forward-Looking Statements 3 PART I Item 1

Business

Business 3 Item 1A

Risk Factors

Risk Factors 15 Item 1B Unresolved Staff Comments 29 Item 1C Cybersecurity 29 Item 2

Properties

Properties 31 Item 3

Legal Proceedings

Legal Proceedings 32 Item 4 Mine Safety Disclosures 32 PART II Item 5 Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6 [Reserved] 34 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 53 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 111 Item 9A

Controls and Procedures

Controls and Procedures 111 Item 9B Other Information 111 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 111 PART III Item 10 Directors, Executive Officers and Corporate Governance 111 Item 11

Executive Compensation

Executive Compensation 112 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 112 Item 13 Certain Relationships and Related Transactions, and Director Independence 113 Item 14 Principal Accounting Fees and Services 113 PART IV Item 15 Exhibits and Financial Statement Schedules 113 Item 16 Form 10-K Summary 118

Signatures

Signatures 119 2 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This report contains forward-looking statements which include but are not limited to predictions, future guidance, projections, beliefs, and expectations about the company's trends, seasonality, cyclicality and growth in, and drivers of, the markets we sell into, our strategic direction, earnings from our foreign subsidiaries, remediation activities, new solution and service introductions, the ability of our solutions to meet market needs, changes to our manufacturing processes, the use of contract manufacturers, the impact of government regulations on our ability to conduct operations, our liquidity position, our ability to generate cash from operations, growth in our businesses, our investments, the potential impact of adopting new accounting pronouncements, our financial results, our purchase commitments, our contributions to our pension plans, the selection of discount rates and recognition of any gains or losses for our benefit plans, our cost-control activities, savings and headcount reduction recognized from our restructuring programs and other cost saving initiatives, and other regulatory approvals, the integration of our completed acquisitions and other transactions, and our transition to lower-cost regions. The forward-looking statements involve risks and uncertainties that could cause Keysight's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, the impact of global economic conditions such as inflation or potential recession, slowing demand for products or services, volatility in financial markets, the existence of political or economic instability, uncertainty related to the impact of national elections results in the U.S. and UK, impacts of geopolitical tension and conflict in regions outside of the U.S., the impacts of increased trade tension and tightening of export control regulations, the impact of new and ongoing litigation, impacts related

Business

Item 1. Business Overview Keysight Technologies, Inc. ("we," "us," "our," "Keysight" or "the company"), incorporated in Delaware on December 6, 2013, is a global innovator in the computing, communications and electronics markets, committed to advancing our customers' business success by helping them solve critical challenges in the development and commercialization of their products and services. Our mission, "accelerating innovation to connect and secure the world," speaks to the value we provide our customers in a world of ever-increasing technological complexity. We deliver this value through a broad range of design and test solutions that enable our customers to bring their innovations to market on ever-shorter schedules. Keysight's portfolio of hardware, software, and services enables our customers' workflows as they design, validate, manufacture, deploy, and optimize their products and solutions. Our revenue is derived primarily from solutions addressing research and development ("R&D") applications, and to a lesser degree, applications in manufacturing and operations. The accelerating pace of technological innovation and engineering intensity are long-term secular drivers of demand for Keysight's solutions and services. We serve a global set of customers in over 100 countries across a wide range of industry segments, including communications, aerospace, defense, and government, automotive, energy, industrial, general electronics, and semiconductor. We generated $5.4 billion, $5.0 billion, and $5.5 billion of revenue in 2025, 2024, and 2023, respectively. Revenue, income from operations, and assets by business segment as of and for the fiscal years ended October 31, 2025, 2024, and 2023, are provided in Note 16, "Segment Information," to our consolidated financial statements. Keysight Leadership Model We trace our heritage back over 80 years to the beginning of Silicon Valley. The fundamental elements of our culture are represented in our Keysight Leade

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