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ANNUAL REPORT ACCELERATE INNOVATION TO CONNECT AND SECURE THE WORLD 2025
Keysight Technologies, Inc. 1400 Fountaingrove Parkway Santa Rosa, California 95403 Satish Dhanasekaran President & Chief Executive Officer January 27, 2026 To our Stockholders, Fiscal year 2025 marked Keysight s return to growth. Our business built momentum throughout the year as customers leaned on our differentiated solutions to advance their most important technology programs. We delivered full-year revenue of $5.4 billion, up 8 percent, and non-GAAP earnings per share of $7.16, up 14 percent, all while managing tariff headwinds. This performance reflects the strength of our portfolio, the durability of our operating model, and our long track record of disciplined execution. Across our end markets, we saw the conclusion of normalization, with investment strengthening in several key areas. The long-term trends we highlighted at our 2023 Investor Day continued to take shape, and our early focus on next-generation connectivity, high-performance compute, defense modernization, and AI-driven shifts across the industries we serve positioned us as a trusted partner for customers accelerating their technology transitions. Orders grew 8 percent for the year and accelerated throughout the second half, giving us strong backlog and a healthy pipeline entering fiscal 2026. We also advanced our long-term strategy. FY25 was a pivotal year for expanding our software-centric solutions and extending Keysight deeper into customer design workflows. The acquisitions of Spirent, Synopsys Optical Solutions Group, and Ansys PowerArtist enhance our capabilities in positioning, photonics, and power optimization. These assets expand the value we bring to customers across the stack, from early design through deployment, and support our mission to accelerate innovation across the industries that matter most. The Communications Solutions Group delivered a strong year with high single-digit revenue growth. Momentum came from strength across wireline, wireless, and aerospace, defense, and government. Wireline was a strong contributor to our return to growth and remains a major source of confidence as we look ahead. Revenue grew double digits to reach a new record. The rapid scaling of AI workloads is driving redesigns across compute, networking, interconnects, memory, and power. We have aligned our portfolio with this shift, and in FY25 our solutions played an essential role across the expanding AI supply chain. Customers relied on Keysight for physical layer test, protocol emulation, and system-level modeling to bring next-generation infrastructure to market. Wireless delivered mid-single digit revenue growth as markets stabilized and customers advanced 5G enhancements, non-terrestrial networks, and early 6G work. Steady 5G activity continued through Releases 18 and 19, while investment in NTN and LEO architectures increased throughout the year. With the addition of Spirent s precision location technology and lifecycle service assurance capabilities, we expanded our offering for next-generation positioning, timing, and end-to-end network assurance. In 6G, the shift from pure research to early pre-standards designs created deeper engagements with strategic customers, and our collaborations doubled year over year. Aerospace, defense and government generated record orders and revenue growth of 8 percent. Defense modernization remains a priority across the United States, Europe, and other allied nations. Our solutions for wideband signal analysis, phased array antennas, secure communications, and spectrum operations saw strong demand from governments, prime contractors, and emerging defense technology companies. We expanded our reach into space and satellite applications, and newly acquired federal-focused capabilities from Spirent strengthen our positioning in this market. The Electronic Industrial Solutions Group returned to growth with revenue up 6 percent, driven by strength in semiconductor and general electronics. General electronics grew mid-single digits as AI requirements accelerated demand for high-speed PCB, interconnect, and component test. Digital health and education also advanced as customers invested in connectivity, interoperability, and semiconductor workforce development.
Semiconductor delivered solid growth as leading-edge foundry and IDM investments continued. AI-driven demand for advanced nodes, high-bandwidth memory, and silicon photonics expanded throughout the year, and our differentiated R&D and wafer test solutions supported customers next-generation roadmaps. Automotive remained mixed but showed signs of stabilization late in the year, ending down low single digits. While some EV and battery investments were delayed, customers continued to advance software-defined architectures, sensing, and vehicle network compliance. This year, we deepened strategic collaborations across our highest-impact markets. In AI infrastructure, we partnered with Broadcom to validate 1.6-terabit silicon and worked with Meta to model cluster-scale performance ahead of deployment. In 6G, we announced a partnership with NVIDIA and Nokia to evaluate GPU-accelerated RAN architectures and advance next-generation network design. In defense modernization, U.S. and European prime contractors relied on Keysight to enhance radar, spectrum operations, and space systems. Software and services accounted for 37 percent of revenue, with recurring revenue at 29 percent. We executed with discipline while continuing to invest for growth and leadership. We delivered 26 percent operating margin and generated a record $1.3 billion of free cash flow (FCF). This FCF allowed us to invest in organic innovation, complete three acquisitions, and return approximately $375 million to shareholders through buybacks. Since 2023, we have returned over $1.5 billion, representing approximately 45 percent of free cash flow. In November 2025, our Board approved an additional $1.5 billion share repurchase program, reflecting our confidence in the long-term value creation opportunity ahead. Keysight continues to drive innovation, uphold ethical and sustainable business practices, and contribute to societal prosperity through our corporate social responsibility (CSR) efforts. Keysight is included in TIME s World s Most Sustainable Companies and Barron s 100 Most Sustainable US Companies. We remained a member of the Dow Jones Best-in-Class Indices, MSCI Selection Indices1, and the FTSE4Good Index Series. We were named #1 Industry Leader in the JUST 100 Ranking of America s Most Just Companies, which recognizes our leadership in employee treatment, governance, and community engagement. In closing, FY25 was a year of momentum and solid execution. We returned to growth, expanded our leadership in the technologies shaping the future, and demonstrated the resilience of our business in a complex environment. Our strong finish to the year, healthy demand signals, and disciplined execution underscore that our strategy is resonating with our customers. I am proud of what our teams accomplished and am excited about the path ahead as we continue to help customers accelerate innovation and deliver long-term value. To our shareholders, thank you for your continued confidence in and support of Keysight. 1 The inclusion of Keysight Technologies, Inc. in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of Keysight Technologies, Inc. by MSCI or any of its affiliates. The MSCI Indexes are the exclusive property of MSCI. MSCI and the MSCI Index names and logos are trademarks or service marks of MSCI or its affiliates.
 • shareholder letter icon 1/26/2026 Letter Continued (Full PDF)
 • stockholder letter icon 1/23/2023 KEYS Stockholder Letter
 • stockholder letter icon 1/29/2024 KEYS Stockholder Letter
 • stockholder letter icon 1/27/2025 KEYS Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon KEYS Benford's Law Stock Score = 97


KEYS Shareholder/Stockholder Letter Transcript:

ANNUAL
REPORT
ACCELERATE INNOVATION TO
CONNECT AND SECURE THE WORLD
2025


Keysight Technologies, Inc.
1400 Fountaingrove Parkway
Santa Rosa, California 95403
Satish Dhanasekaran
President & Chief Executive Officer
January 27, 2026
To our Stockholders,
Fiscal year 2025 marked Keysight   s return to growth. Our business built momentum throughout the year as customers
leaned on our differentiated solutions to advance their most important technology programs. We delivered full-year
revenue of $5.4 billion, up 8 percent, and non-GAAP earnings per share of $7.16, up 14 percent, all while managing
tariff headwinds. This performance reflects the strength of our portfolio, the durability of our operating model, and our
long track record of disciplined execution.
Across our end markets, we saw the conclusion of normalization, with investment strengthening in several key areas.
The long-term trends we highlighted at our 2023 Investor Day continued to take shape, and our early focus on
next-generation connectivity, high-performance compute, defense modernization, and AI-driven shifts across the
industries we serve positioned us as a trusted partner for customers accelerating their technology transitions. Orders
grew 8 percent for the year and accelerated throughout the second half, giving us strong backlog and a healthy pipeline
entering fiscal 2026.
We also advanced our long-term strategy. FY25 was a pivotal year for expanding our software-centric solutions and
extending Keysight deeper into customer design workflows. The acquisitions of Spirent, Synopsys    Optical Solutions
Group, and Ansys    PowerArtist enhance our capabilities in positioning, photonics, and power optimization. These
assets expand the value we bring to customers across the stack, from early design through deployment, and support our
mission to accelerate innovation across the industries that matter most.
The Communications Solutions Group delivered a strong year with high single-digit revenue growth. Momentum came
from strength across wireline, wireless, and aerospace, defense, and government.
Wireline was a strong contributor to our return to growth and remains a major source of confidence as we look ahead.
Revenue grew double digits to reach a new record. The rapid scaling of AI workloads is driving redesigns across
compute, networking, interconnects, memory, and power. We have aligned our portfolio with this shift, and in FY25 our
solutions played an essential role across the expanding AI supply chain. Customers relied on Keysight for physical layer
test, protocol emulation, and system-level modeling to bring next-generation infrastructure to market.
Wireless delivered mid-single digit revenue growth as markets stabilized and customers advanced 5G enhancements,
non-terrestrial networks, and early 6G work. Steady 5G activity continued through Releases 18 and 19, while
investment in NTN and LEO architectures increased throughout the year. With the addition of Spirent   s precision
location technology and lifecycle service assurance capabilities, we expanded our offering for next-generation
positioning, timing, and end-to-end network assurance. In 6G, the shift from pure research to early pre-standards
designs created deeper engagements with strategic customers, and our collaborations doubled year over year.
Aerospace, defense and government generated record orders and revenue growth of 8 percent. Defense modernization
remains a priority across the United States, Europe, and other allied nations. Our solutions for wideband signal analysis,
phased array antennas, secure communications, and spectrum operations saw strong demand from governments, prime
contractors, and emerging defense technology companies. We expanded our reach into space and satellite applications,
and newly acquired federal-focused capabilities from Spirent strengthen our positioning in this market.
The Electronic Industrial Solutions Group returned to growth with revenue up 6 percent, driven by strength in
semiconductor and general electronics.
General electronics grew mid-single digits as AI requirements accelerated demand for high-speed PCB, interconnect,
and component test. Digital health and education also advanced as customers invested in connectivity, interoperability,
and semiconductor workforce development.

Semiconductor delivered solid growth as leading-edge foundry and IDM investments continued. AI-driven demand for
advanced nodes, high-bandwidth memory, and silicon photonics expanded throughout the year, and our differentiated
R&D and wafer test solutions supported customers    next-generation roadmaps.
Automotive remained mixed but showed signs of stabilization late in the year, ending down low single digits. While
some EV and battery investments were delayed, customers continued to advance software-defined architectures,
sensing, and vehicle network compliance.
This year, we deepened strategic collaborations across our highest-impact markets. In AI infrastructure, we partnered
with Broadcom to validate 1.6-terabit silicon and worked with Meta to model cluster-scale performance ahead of
deployment. In 6G, we announced a partnership with NVIDIA and Nokia to evaluate GPU-accelerated RAN
architectures and advance next-generation network design. In defense modernization, U.S. and European prime
contractors relied on Keysight to enhance radar, spectrum operations, and space systems.
Software and services accounted for 37 percent of revenue, with recurring revenue at 29 percent.
We executed with discipline while continuing to invest for growth and leadership. We delivered 26 percent operating
margin and generated a record $1.3 billion of free cash flow (FCF). This FCF allowed us to invest in organic innovation,
complete three acquisitions, and return approximately $375 million to shareholders through buybacks. Since 2023, we
have returned over $1.5 billion, representing approximately 45 percent of free cash flow. In November 2025, our Board
approved an additional $1.5 billion share repurchase program, reflecting our confidence in the long-term value creation
opportunity ahead.
Keysight continues to drive innovation, uphold ethical and sustainable business practices, and contribute to societal
prosperity through our corporate social responsibility (CSR) efforts. Keysight is included in TIME   s World   s Most
Sustainable Companies and Barron   s 100 Most Sustainable US Companies. We remained a member of the Dow Jones
Best-in-Class Indices, MSCI Selection Indices1, and the FTSE4Good Index Series. We were named #1 Industry Leader
in the JUST 100 Ranking of America   s Most Just Companies, which recognizes our leadership in employee treatment,
governance, and community engagement.
In closing, FY25 was a year of momentum and solid execution. We returned to growth, expanded our leadership in the
technologies shaping the future, and demonstrated the resilience of our business in a complex environment. Our strong
finish to the year, healthy demand signals, and disciplined execution underscore that our strategy is resonating with our
customers. I am proud of what our teams accomplished and am excited about the path ahead as we continue to help
customers accelerate innovation and deliver long-term value.
To our shareholders, thank you for your continued confidence in and support of Keysight.
1
The inclusion of Keysight Technologies, Inc. in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names herein,
do not constitute a sponsorship, endorsement or promotion of Keysight Technologies, Inc. by MSCI or any of its affiliates. The MSCI Indexes are
the exclusive property of MSCI. MSCI and the MSCI Index names and logos are trademarks or service marks of MSCI or its affiliates.



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