Keysight Technologies Inc (NYSE:KEYS) stock rose 6.96% (As on November 25, 11:36:18 AM UTC-4, Source: Google Finance) after the company forecast first-quarter revenue and profit ahead of Wall Street estimates. Keysight, which provides electronic design, test and simulation software, has experienced growth driven by sustained demand for its products by data centers as they expand to support AI workloads. Its products include oscilloscopes, protocol analyzers and digital multimeters, among other offerings. The company, which was separated from Agilent Technologies in 2014, also beat Wall Street estimates for fourth-quarter revenue and profit, helped by strong performance in its communications solutions unit. The unit’s revenue rose 11% to $990 million compared with $894 million a year earlier, driven by continued investments in AI data center infrastructure, non-terrestrial network applications and defense modernization. Non-GAAP net income was $331 million, or $1.91 per share, compared with $288 million, or $1.65 per share, in the fourth quarter of 2024. Cash flow from operations was $225 million, compared with $359 million last year. Free cash flow was $188 million, compared with $328 million in the fourth quarter of 2024. As of October 31, 2025, cash and cash equivalents totaled $1.87 billion.
Moreover, Communications Solutions Group (CSG) reported revenue of $990 million in the fourth quarter, up 11 percent over last year, driven by ongoing investment in AI data center infrastructure, non-terrestrial network applications, and defense modernization. Electronic Industrial Solutions Group (EISG) reported revenue of $429 million in the fourth quarter, up 9 percent over last year, reflecting growth in broad general electronics and leading-edge semiconductor solutions. In addition, KEYS in Q4, advanced software-centric solutions strategy with the acquisitions of Spirent, Synopsys’ Optical Solutions Group, and Ansys’ PowerArtist.
KEYS in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.91, beating the analysts’ estimates for the adjusted earnings per share of $1.83. The company had reported the adjusted revenue of $1.42 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $1.38 billion.
Additionally, the company has authorized a new share repurchase program for up to $1.5 billion of its common stock.
The Santa Rosa, California-based company expects quarterly revenue in the range of $1.53 billion to $1.55 billion, and adjusted earnings of about $1.95 to $2.01 per share. This comes ahead of average analysts estimates of revenue of $1.43 billion and adjusted profit of $1.83 per share, according to analysts’ estimates compiled by LSEG.