Revenue growth in double digits recorded by Keysight in all business segments during Q3
Keysight Technologies (NYSE:KEYS), a leading electronic design and test solutions company, reported its third quarter fiscal 2025 financial results. The company demonstrated impressive growth, with both major business segments, Communications Solutions Group and Electronic Industrial, showing double-digit revenue growth.
The GAAP revenue for the quarter ended July 31, 2025, was $1.35 billion, representing an 11% year-over-year increase. Non-GAAP earnings per share (EPS) came in at $1.72, a 9.6% rise from the prior year and surpassing analyst expectations.
Despite a decrease in headline GAAP net income due to a one-time tax benefit in the prior year, operational earnings improved, and margins remained stable amid tariff-related cost pressures. The gross margin stood at 63.4%, and the effective tax rate was 17.5%.
The operating income for the quarter was $388 million, and the operating cash flow margin was 27.3%. The cash flow from operations amounted to $399 million, and the free cash flow reached $328 million.
The diluted weighted-average shares outstanding for the quarter were 172.2 million. The strong financial performance was underpinned by key sector order growth, with notable growth in AI, aerospace, and electronics.
However, shares dropped about 4% after the report due to concerns over tariff headwinds potentially increasing annual costs by roughly $75 million, which may be partly offset by supply chain changes or price increases.
Looking ahead, the automotive sector remains stable, but growth from 6G technology commercialization is expected to be several years away, which could delay revenue upside from that emerging market. Overall, Keysight’s current performance is robust with positive growth trends, but trade tariff-related cost risks and longer-term timing for new technology revenue are factors for future financial outlook considerations.
[1] Keysight Technologies Press Release, 28 July 2025. [Link to press release] [2] MarketWatch, 28 July 2025. [Link to MarketWatch article] [3] Yahoo Finance, 28 July 2025. [Link to Yahoo Finance article] [4] Seeking Alpha, 28 July 2025. [Link to Seeking Alpha article]
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
- Celebrated Title: Cheesemakers Blessed Upon
- Construction and renovation projects in Cham county granted €24.8 million focus on energy efficiency
