Keysight Technologies, Inc 10-Q for FY2025 Q2

Keysight Technologies, Inc. (KEYS)

10-Q 2025-06-03 For: 2025-04-30

Added on April 03, 2026

About this 10-Q

Keysight Technologies, Inc filed this 10-Q on June 3, 2025, covering the quarter ended April 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended April 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.31B; up 7.4% from $1.22B a year earlier
Net income: $257M; up 104.0% from net income of $126M a year earlier
Diluted EPS: $1.49; up 106.9% from $0.72 a year earlier

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Delaware		46-4254555
(State or other jurisdiction of		(IRS employer
incorporation or organization)		Identification no.)

1400 Fountaingrove Parkway
Santa Rosa	California	95403
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	KEYS	New York Stock Exchange


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐


			Page Number
Part I.	Financial Information		3
	Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3
		Condensed Consolidated Statement of Operations	3
		Condensed Consolidated Statement of Comprehensive Income	4
		Condensed Consolidated Balance Sheet	5
		Condensed Consolidated Statement of Cash Flows	6
		Condensed Consolidated Statement of Equity	7
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
	Item 4.	Controls and Procedures	35
Part II.	Other Information		35
	Item 1.	Legal Proceedings	35
	Item 1A.	Risk Factors	36
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
	Item 5.	Other Information	50
	Item 6.	Exhibits	51
Signatures			52


	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2025		2024		2025		2024
Revenue:
Products	$	988	$	909	$	1,971	$	1,861
Services and other	318		307		633		614
Total revenue	1,306		1,216		2,604		2,475
Costs and expenses:
Cost of products	386		358		761		709
Cost of services and other	106		95		209		190
Total costs	492		453		970		899
Research and development	250		228		499		460
Selling, general and administrative	360		361		721		723
Other operating expense (income), net	(3)		(3)		(11)		(5)
Total costs and expenses	1,099		1,039		2,179		2,077
Income from operations	207		177		425		398
Interest income	21		18		40		41
Interest expense	(20)		(20)		(40)		(40)
Other income (expense), net	112		—		94		5
Income before taxes	320		175		519		404
Provision for income taxes	63		49		93		106
Net income	$	257	$	126	$	426	$	298

Net income per share:
Basic	$	1.49	$	0.73	$	2.47	$	1.71
Diluted	$	1.49	$	0.72	$	2.45	$	1.70

Weighted average shares used in computing net income per share:
Basic	172		174		173		175
Diluted	173		175		174		175


	April 30, 2025		October 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	3,118	$	1,796

Accounts receivable, net	744		857
Inventory	1,026		1,022
Other current assets	578		582
Total current assets	5,466		4,257
Property, plant and equipment, net	769		774
Operating lease right-of-use assets	226		234
Goodwill	2,433		2,388
Other intangible assets, net	556		607
Long-term investments	138		110
Long-term deferred tax assets	379		378
Other assets	568		521
Total assets	$	10,535	$	9,269
LIABILITIES AND EQUITY
Current liabilities:


Accounts payable	$	317	$	313
Employee compensation and benefits	319		295
Deferred revenue	612		561
Income and other taxes payable	175		90
Operating lease liabilities	46		43
Other accrued liabilities	145		125
Total current liabilities	1,614		1,427

Long-term debt	2,532		1,790
Retirement and post-retirement benefits	82		81
Long-term deferred revenue	218		206
Long-term operating lease liabilities	187		197
Other long-term liabilities	425		463
Total liabilities	5,058		4,164
Commitments and contingencies (Note 13)

Stockholders’ equity:
Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding	—		—
Common stock; $0.01 par value; 1 billion shares authorized; 202 million and 201 million shares issued, respectively	2		2
Treasury stock, at cost; 29.9 million shares and 28.4 million shares, respectively	(3,648)		(3,422)
Additional paid-in-capital	2,765		2,664
Retained earnings	6,651		6,225
Accumulated other comprehensive loss	(293)		(364)
Total stockholders' equity	5,477		5,105


Total liabilities and equity	$	10,535	$	9,269


	Common Stock					Treasury Stock
	Number of Shares	Par Value		Additional Paid-in Capital		Number of Shares	Treasury Stock at Cost		Retained Earnings		Accumulated Other Comprehensive Loss		Non-controlling Interests		Total Stockholders' Equity
Balance as of January 31, 2025	201,681	$	2	$	2,731	(28,873)	$	(3,497)	$	6,394	$	(443)	$	—	$	5,187
Net income	—	—		—		—	—		257		—		—		257
Other comprehensive income (loss), net of tax	—	—		—		—	—		—		150		—		150
Issuance of common stock	23	—		—		—	—		—		—		—		—

Share-based compensation	—	—		34		—	—		—		—		—		34
Repurchase of common stock, including excise tax	—	—		—		(1,041)	(151)		—		—		—		(151)
Balance as of April 30, 2025	201,704	$	2	$	2,765	(29,914)	$	(3,648)	$	6,651	$	(293)	$	—	$	5,477

Balance as of October 31, 2024	201,008	$	2	$	2,664	(28,424)	$	(3,422)	$	6,225	$	(364)	$	—	$	5,105
Net income	—	—		—		—	—		426		—		—		426
Other comprehensive income (loss), net of tax	—	—		—		—	—		—		71		—		71
Issuance of common stock	696	—		31		—	—		—		—		—		31
Taxes related to net share settlement of equity awards	—	—		(29)		—	—		—		—		—		(29)
Share-based compensation	—	—		99		—	—		—		—		—		99
Repurchase of common stock, including excise tax	—	—		—		(1,490)	(226)		—		—		—		(226)
Balance as of April 30, 2025	201,704	$	2	$	2,765	(29,914)	$	(3,648)	$	6,651	$	(293)	$	—	$	5,477

Balance as of January 31, 2024	200,621	$	2	$	2,547	(26,074)	$	(3,073)	$	5,783	$	(442)	$	—	$	4,817
Net income	—	—		—		—	—		126		—		—		126
Other comprehensive income (loss), net of tax	—	—		—		—	—		—		(27)		—		(27)
Issuance of common stock	34	—		1		—	—		—		—		—		1

Share-based compensation	—	—		32		—	—		—		—		—		32
Repurchase of common stock, including excise tax	—	—		—		(302)	(46)		—		—		—		(46)
Balance as of April 30, 2024	200,655	$	2	$	2,580	(26,376)	$	(3,119)	$	5,909	$	(469)	$	—	$	4,903

Balance as of October 31, 2023	199,771	$	2	$	2,487	(25,449)	$	(2,980)	$	5,611	$	(466)	$	—	$	4,654
Net income	—	—		—		—	—		298		—		4		302
Other comprehensive income (loss), net of tax	—	—		—		—	—		—		(3)		—		(3)
ESI Group acquisition	—	—		—		—	—		—		—		458		458
Issuance of common stock	884	—		33		—	—		—		—		—		33
Taxes related to net share settlement of equity awards	—	—		(28)		—	—		—		—		—		(28)
Share-based compensation	—	—		84		—	—		—		—		—		84
Repurchase of common stock, including excise tax	—	—		—		(927)	(139)		—		—		—		(139)
Acquisition of non-controlling interests	—	—		4		—	—		—		—		(462)		(458)
Balance as of April 30, 2024	200,655	$	2	$	2,580	(26,376)	$	(3,119)	$	5,909	$	(469)	$	—	$	4,903


	Three Months Ended		Six Months Ended
	April 30, 2024		April 30, 2024
	(in millions, except per share amounts)
Net revenue	$	1,216	$	2,475
Net income	$	133	$	319
Net income per share - Basic	$	0.76	$	1.83
Net income per share - Diluted	$	0.76	$	1.82


	Six Months Ended
	April 30, 2025
	(in millions)
Balance at October 31, 2024	$	767
Deferral of revenue billed in current period, net of recognition	397

Revenue recognized that was deferred as of the beginning of the period	(343)
Foreign currency translation impact	9
Balance at April 30, 2025	$	830


	CSG		EISG		Total
	(in millions)
Goodwill at October 31, 2024	$	1,240	$	1,148	$	2,388
Foreign currency translation impact	17		25		42
Goodwill arising from acquisitions	2		1		3
Goodwill at April 30, 2025	$	1,259	$	1,174	$	2,433


	April 30, 2025						October 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in millions)
Developed technology	$	1,411	$	1,055	$	356	$	1,377	$	1,018	$	359
Backlog	38		29		9		37		25		12
Trademark/Tradename	38		37		1		38		36		2
Customer relationships	587		420		167		587		398		189

Total amortizable intangible assets	$	2,074	$	1,541	$	533	$	2,039	$	1,477	$	562
In-Process R&D	23		—		23		45		—		45
Total	$	2,097	$	1,541	$	556	$	2,084	$	1,477	$	607


	Amortization expense
	(in millions)
2025 (remainder)	$	65
2026	$	119
2027	$	107
2028	$	104
2029	$	95
2030	$	17
Thereafter	$	26


	Fair Value Measurements at
	April 30, 2025										October 31, 2024
	Total		Level 1		Level 2		Level 3		Other		Total		Level 1		Level 2		Level 3		Other
	(in millions)
Assets:
Short-term
Cash equivalents
Money market funds	$	2,649	$	2,649	$	—	$	—	$	—	$	1,141	$	1,141	$	—	$	—	$	—
Derivative instruments (foreign exchange contracts)	33		—		33		—		—		38		—		38		—		—
Long-term

Equity investments	104		104		—		—		—		80		80		—		—		—
Investments - other	34		—		—		—		34		29		—		—		—		29
Total assets measured at fair value	$	2,820	$	2,753	$	33	$	—	$	34	$	1,288	$	1,221	$	38	$	—	$	29
Liabilities:
Short-term
Derivative instruments (foreign exchange contracts)	$	15	$	—	$	15	$	—	$	—	$	6	$	—	$	6	$	—	$	—
Long-term
Deferred compensation liability	34		—		34		—		—		34		—		34		—		—
Total liabilities measured at fair value	$	49	$	—	$	49	$	—	$	—	$	40	$	—	$	40	$	—	$	—


	Derivatives in Cash Flow Hedging Relationships		Derivatives Not Designated as Hedging Instruments
	Forward Contracts		Forward Contracts
Currency	Buy/(Sell)		Buy/(Sell)
	(in millions)
Euro	$	10	$	130
Pounds Sterling	10		1,651
Singapore Dollar	30		16

Malaysian Ringgit	118		11
Japanese Yen	(122)		(125)
Other currencies	(35)		53
Total	$	11	$	1,736


Fair Values of Derivative Instruments
Assets Derivatives					Liabilities Derivatives
	Fair Value					Fair Value
Balance Sheet Location	April 30, 2025		October 31, 2024		Balance Sheet Location	April 30, 2025		October 31, 2024
(in millions)
Derivatives designated as hedging instruments:
Cash flow hedges
Foreign exchange contracts
Other current assets	$	6	$	8	Other accrued liabilities	$	7	$	2



Derivatives not designated as hedging instruments:
Foreign exchange contracts
Other current assets	27		30		Other accrued liabilities	8		4
Total derivatives	$	33	$	38		$	15	$	6


	Three Months Ended
	April 30,
	2025						2024
	CSG		EISG		Total		CSG		EISG		Total
	(in millions)
Region
Americas	$	408	$	102	$	510	$	397	$	95	$	492
Europe	128		95		223		127		101		228
Asia Pacific	377		196		573		316		180		496
Total revenue	$	913	$	393	$	1,306	$	840	$	376	$	1,216

End Market
Aerospace, Defense & Government	$	301	$	—	$	301	$	277	$	—	$	277
Commercial Communications	612		—		612		563		—		563
Electronic Industrial	—		393		393		—		376		376
Total revenue	$	913	$	393	$	1,306	$	840	$	376	$	1,216

Timing of Revenue Recognition
Revenue recognized at a point in time	$	730	$	326	$	1,056	$	658	$	307	$	965
Revenue recognized over time	183		67		250		182		69		251
Total revenue	$	913	$	393	$	1,306	$	840	$	376	$	1,216


	Six Months Ended
	April 30,
	2025						2024
	CSG		EISG		Total		CSG		EISG		Total
	(in millions)
Region
Americas	$	856	$	205	$	1,061	$	814	$	192	$	1,006
Europe	265		217		482		259		224		483
Asia Pacific	675		386		1,061		606		380		986
Total revenue	$	1,796	$	808	$	2,604	$	1,679	$	796	$	2,475

End Market
Aerospace, Defense & Government	$	612	$	—	$	612	$	572	$	—	$	572
Commercial Communications	1,184		—		1,184		1,107		—		1,107
Electronic Industrial	—		808		808		—		796		796
Total revenue	$	1,796	$	808	$	2,604	$	1,679	$	796	$	2,475

Timing of Revenue Recognition
Revenue recognized at a point in time	$	1,430	$	672	$	2,102	$	1,312	$	653	$	1,965
Revenue recognized over time	366		136		502		367		143		510
Total revenue	$	1,796	$	808	$	2,604	$	1,679	$	796	$	2,475


	April 30, 2025		October 31, 2024
	(in millions)
2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $1 and $2)	$	699	$	698
2029 Senior Notes at 3.00% ($500 face amount less unamortized costs of $2 and $2)	498		498
2030 Senior Notes at 5.35% ($750 face amount less unamortized costs of $9)	741		—
2034 Senior Notes at 4.95% ($600 face amount less unamortized costs of $6 and $6)	594		594
Total debt	$	2,532	$	1,790


	Pensions
	U.S. Defined Benefit Plans				Non-U.S. Defined Benefit Plans				U.S. Post-Retirement Benefit Plan
	Three Months Ended
	April 30,
	2025		2024		2025		2024		2025		2024
	(in millions)
Service cost—benefits earned during the period	$	5	$	3	$	2	$	2	$	—	$	—
Interest cost on benefit obligation	9		10		8		9		2		2
Expected return on plan assets	(13)		(12)		(14)		(13)		(3)		(3)

Amortization of net actuarial loss (gain)	2		3		(1)		2		(1)		—


Net periodic benefit cost (benefit)	$	3	$	4	$	(5)	$	—	$	(2)	$	(1)

	Pensions
	U.S. Defined Benefit Plans				Non-U.S. Defined Benefit Plans				U.S. Post-Retirement Benefit Plan
	Six months ended
	April 30,
	2025		2024		2025		2024		2025		2024
	(in millions)
Service cost—benefits earned during the period	$	9	$	7	$	4	$	4	$	—	$	—
Interest cost on benefit obligation	19		20		17		18		4		4
Expected return on plan assets	(26)		(24)		(29)		(26)		(6)		(6)

Amortization of net actuarial loss (gain)	3		5		(2)		4		(1)		—


Net periodic benefit cost (benefit)	$	5	$	8	$	(10)	$	—	$	(3)	$	(2)


	Foreign currency translation		Net defined benefit pension cost and post-retirement plan costs		Gains (losses) on derivatives		Total

	(in millions)
As of January 31, 2025	$	(209)	$	(317)	$	83	$	(443)
Other comprehensive income (loss) before reclassifications	152		—		(2)		150
Amounts reclassified out of accumulated other comprehensive gain (loss)	—		2		(4)		(2)
Tax benefit (expense)	—		—		2		2
Other comprehensive income (loss)	152		2		(4)		150
As of April 30, 2025	$	(57)	$	(315)	$	79	$	(293)

As of October 31, 2024	$	(136)	$	(317)	$	89	$	(364)
Other comprehensive income (loss) before reclassifications	79		—		(3)		76
Amounts reclassified out of accumulated other comprehensive gain (loss)	—		2		(9)		(7)
Tax benefit (expense)	—		—		2		2
Other comprehensive income (loss)	79		2		(10)		71
As of April 30, 2025	$	(57)	$	(315)	$	79	$	(293)

As of January 31, 2024	$	(140)	$	(387)	$	85	$	(442)
Other comprehensive income (loss) before reclassifications	(32)		—		4		(28)
Amounts reclassified out of accumulated other comprehensive gain (loss)	—		5		(3)		2
Tax benefit (expense)	—		(1)		—		(1)
Other comprehensive income (loss)	(32)		4		1		(27)
As of April 30, 2024	$	(172)	$	(383)	$	86	$	(469)

As of October 31, 2023	$	(167)	$	(388)	$	89	$	(466)
Other comprehensive income (loss) before reclassifications	(5)		—		1		(4)
Amounts reclassified out of accumulated other comprehensive gain (loss)	—		7		(5)		2
Tax benefit (expense)	—		(2)		1		(1)
Other comprehensive income (loss)	(5)		5		(3)		(3)
As of April 30, 2024	$	(172)	$	(383)	$	86	$	(469)


Details about accumulated other comprehensive loss components	Amounts reclassified from accumulated other comprehensive loss								Affected line item in statement of operations
	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2025		2024		2025		2024
	(in millions)
Gain (loss) on derivatives	$	2	$	3	$	4	$	6	Cost of products
	—		—		—		(1)		Selling, general and administrative
	2		—		5		—		Interest expense
	(1)		(1)		(1)		(1)		Benefit (provision) for income tax
	3		2		8		4		Net of income tax

Net defined benefit pension cost and post-retirement plan costs:
Net actuarial loss	(2)		(5)		(2)		(7)		Other income (expense), net


	—		1		—		2		Benefit (provision) for income tax
	(2)		(4)		(2)		(5)		Net of income tax

Total reclassifications for the period	$	1	$	(2)	$	6	$	(1)	Net of income tax


	Three Months Ended						Six Months Ended						Year-over-Year
	April 30,						April 30,						Change
	2025			2024			2025			2024			Three Months	Six Months
	(in millions, except margin data)

Revenue	$	1,306		$	1,216		$	2,604		$	2,475		7%	5%
Gross margin	62.4		%	62.8		%	62.7		%	63.7		%	—	(1) ppt
Research and development	$	250		$	228		$	499		$	460		10%	8%
Percentage of revenue	19		%	19		%	19		%	19		%	—	1 ppt
Selling, general and administrative	$	360		$	361		$	721		$	723		—	—
Percentage of revenue	28		%	30		%	28		%	29		%	(2) ppts	(1) ppt
Other operating expense (income), net	$	(3)		$	(3)		$	(11)		$	(5)		24%	146%
Income from operations	$	207		$	177		$	425		$	398		17%	7%
Operating margin	15.9		%	14.6		%	16.3		%	16.1		%	1 ppt	—
Interest income	$	21		$	18		$	40		$	41		13%	(3)%
Interest expense	$	(20)		$	(20)		$	(40)		$	(40)		1%	—
Other income (expense), net	$	112		$	—		$	94		$	5		—	2,133%
Income before taxes	$	320		$	175		$	519		$	404		83%	29%
Provision for income taxes	$	63		$	49		$	93		$	106		30%	(12)%
Net income	$	257		$	126		$	426		$	298		104%	43%


	Three Months Ended				Six Months Ended				Year- over-Year
	April 30,				April 30,				Change
	2025		2024		2025		2024		Three Months	Six Months
	(in millions)
Total revenue	$	913	$	840	$	1,796	$	1,679	9%	7%


Period	Total Number of Shares of Common Stock Purchased (1)	Weighted Average Price Paid per Share of Common Stock (2)	Total Number of Shares of Common Stock Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Approximate Dollar Value of Shares of Common Stock that May Yet Be Purchased Under the Program (1)

February 1, 2025 through February 28, 2025	21,643	$157.09	21,643	$406,331,250
March 1, 2025 through March 31, 2025	465,487	$153.81	465,487	$334,732,988
April 1, 2025 through April 30, 2025	554,575	$135.24	554,575	$259,733,010
Total	1,041,705		1,041,705


(1)			On March 6, 2023, our board of directors approved a stock repurchase program authorizing the purchase of up to $1,500 million of the company’s common stock. Under our stock repurchase program, shares may be purchased from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions or other means. All such shares and related costs are held as treasury stock and accounted for at trade date using the cost method.
(2)			The weighted average price paid per share of common stock does not include the cost of commissions or excise taxes.


(1)			The “Aggregate number of securities to be sold” represents the gross number of shares to be received during the duration of the plan, before excluding any shares withheld by the company to satisfy its income tax withholding in connection with the net settlement of the equity awards. Any underlying performance share awards being calculated at target.


Exhibit
Number						Description

31.1						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1						Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2						Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH						XBRL Extension Schema Document

101.CAL						XBRL Extension Calculation Linkbase Document

101.LAB						XBRL Extension Label Linkbase Document

101.PRE						XBRL Extension Presentation Linkbase Document

101.DEF						XBRL Extension Definition Linkbase Document

104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


Dated:	June 3, 2025	By:	/s/ Neil Dougherty
			Neil Dougherty
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)


Dated:	June 3, 2025	By:	/s/ Lisa M. Poole
			Lisa M. Poole
			Vice President and Corporate Controller
			(Principal Accounting Officer)


Date:	June 3, 2025
		/s/ Satish Dhanasekaran
		Satish Dhanasekaran
		President and Chief Executive Officer