Keysight Technologies — Income Statement, Cash Flows & Balance Sheet
Is Keysight profitable?
Keysight bounced back to revenue growth in fiscal 2025, though profitability remains well below its 2023 peak.
| Metric | FY2023 | FY2024 | FY2025 | Change (FY24→FY25) |
|---|---|---|---|---|
| Total revenue ($M) | $5,464 | $4,979 | $5,375 | +$396 (+8%) |
| Gross profit ($M) | $3,532 | $3,133 | $3,337 | +$204 (+7%) |
| Gross margin | 64.6% | 62.9% | 62.1% | –0.8 pts |
| Net income from continuing ops ($M) | $1,057 | $614 | $869 | +$255 (+42%) |
| Diluted EPS (continuing ops) | $5.91 | $3.51 | $5.02 | +$1.51 (+43%) |
Revenue recovered nicely from the FY2024 trough, and net income from continuing operations jumped significantly. Gross margin slipped modestly, partly because acquisition-related costs (amortization, integration expenses totalling $293M in FY2025) weigh on reported results — these are real costs but don't reflect the underlying business performance. The prior year's outsized tax rate (29% in FY2024 due to a one-time Singapore charge) also depressed FY2024 earnings, making the FY2025 recovery look more dramatic in comparison.
Keysight made three significant acquisitions at fiscal year-end, adding only a sliver of revenue but a notable one-time loss.
| Item | FY2025 |
|---|---|
| Spirent revenue (post-close) | $9M |
| Net loss from discontinued ops (Spirent divestiture) | –$19M |
| Acquisition & integration costs | $152M |
Keysight acquired Spirent and immediately sold a portion of it to satisfy regulators, generating a small loss on discontinued operations. Most of the acquisition impact — revenue uplift and cost synergies — will show up in future periods.
Where does Keysight's revenue come from?
Both of Keysight's segments grew, but the larger Communications Solutions Group (CSG) is the primary engine.
| Segment | FY2024 Revenue | FY2025 Revenue | Change |
|---|---|---|---|
| CSG (comms & aerospace/defense) | $3,420M | $3,726M | +$306M (+9%) |
| EISG (electronic industrial) | $1,559M | $1,649M | +$90M (+6%) |
| Total | $4,979M | $5,375M | +$396M (+8%) |
CSG, which serves commercial communications and aerospace/defense customers, drove most of the growth. EISG — serving automotive, semiconductor, and general electronics markets — also grew but continues to lag its FY2023 level of $1,779M, reflecting ongoing softness in those end markets. The Americas and Asia Pacific both contributed to the revenue rebound.
Does Keysight generate cash?
Keysight is a strong cash generator from operations, though it spent heavily on acquisitions in FY2025.
| Cash Flow Item | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Operating cash flow ($M) | $1,408 | $1,052 | $1,409 |
| Capital expenditures ($M) | ($197) | ($154) | ($128) |
| Free cash flow ($M) | $1,211 | $898 | $1,281 |
| Acquisitions, net ($M) | ($85) | ($681) | ($2,022) |
Operating cash flow rebounded strongly to match FY2023 levels, and capital spending continues to decline — a positive sign for free cash flow (operating cash flow minus capex). The headline use of cash was acquisitions: Keysight spent over $2B on Spirent, OSG, and PowerArtist, funded through a combination of cash on hand and new debt. A $399M partial divestiture of Spirent assets offset some of this outlay.
How strong is Keysight's balance sheet?
Keysight took on meaningful new debt to fund its acquisition spree, but liquidity remains solid.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Cash & equivalents ($M) | $1,796 | $1,873 | +$77 |
| Total long-term debt ($M) | $1,790 | $2,534 | +$744 |
| Total stockholders' equity ($M) | $5,105 | $5,881 | +$776 |
| Goodwill + intangibles ($M) | $2,995 | $4,728 | +$1,733 |
Long-term debt rose substantially with the April 2025 issuance of $750M in new senior notes, yet Keysight holds nearly $1.9B in cash and an untapped $750M revolving credit line — so near-term liquidity is comfortable. The jump in goodwill and intangibles reflects the acquisitions; investors should note these are preliminary valuations that may be revised through mid-2026. The company repurchased $375M of its own shares during the year, signalling confidence even while integrating new businesses.