Slide 1: Keysight Technologies Q1 Fiscal Year 2025 Results
Keysight Technologies Q1 Fiscal Year 2025 Results February 25, 2025
Slide 2: Safe Harbor
Safe Harbor This communication contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created therein. Statements preceded by, followed by, or that
Slide 3: Q1'25 Highlights
Q1’25 Highlights • First quarter revenue of $1.3B and earnings per share of $1.82 exceeded the high-end of guidance. Delivered a strong start to the year with first 1 • Revenue returned to growth driven by strength in commercial communications as well as quarter results that were above expectations
Slide 4: Q1'25 Non-GAAP Financial Highlights
Q1’25 Non-GAAP Financial Highlights Orders Revenue Operating Margin EPS $1.263B $1.298B 27.3% $1.82 +4%y/y (+4%core*) +3%y/y (+3% core*) -90 basis points y/y +12%y/y * Core excludes the impact of currency, acquisitions or divestitures closed in last twelve months; reconciliations included. Reconcili
Slide 5: Revenue by Segment & by Region
Revenue by Segment & by Region Q1'25 Revenue: $1.298B 5
Slide 6: Revenue Trend by Region
Revenue Trend by Region +7% y/y (+7% core*): Revenue growth in +1% y/y (+1% core*): Revenue growth in -1% y/y (+1% core*): Revenue decline in ADG, CC and EI. CC; decline in ADG and EI was flat. EI; growth in CC and ADG. Key: * Core excludes the impact of currency, acquisitions or divestitures closed
Slide 7: Q1'25 Communications Solutions Group Highlights
Q1’25 Communications Solutions Group Highlights Revenue • Gross margin of 68% reflecting strong solutions differentiation. $883M • Commercial Communications: Revenue grew y/y for a second consecutive +5% y/y (+5% core*) quarter. Strong order growth driven primarily by continued demand for AI- relate
Slide 8: Q1'25 Electronic Industrial Solutions Group Highlights
Q1’25 Electronic Industrial Solutions Group Highlights Revenue • Automotive: Market conditions remain challenged, reflecting muted activity in manufacturing and EV battery development. $415M -1% y/y (— core*) • Semiconductor: Revenue and orders were up modestly. Foundry and memory customers drove hi
Slide 9: Q1'25 Revenue By End Market
Q1’25 Revenue By End Market End Market Revenue YoY % Commercial $572M +5% Communications Aerospace, Defense & $311M +5% Government Electronic Industrial $415M -1% Solutions Total $1,298M +3% 9
Slide 10: Guidance and Financial Considerations
Guidance and Financial Considerations Q2'25 Guidance Revenue $1.270B – $1.290B Non-GAAP Earnings per share $1.61 – $1.67 Q2'25 Financial Assumptions • Interest Income, Interest Expense and Other Income/Expense: ~$10-12M net income per quarter • Non-GAAP tax rate of 14% for Q225 and FY25 • Guidance a
Slide 11: Reconciliations
WW KEYSIGHT Reconciliations
Slide 12: Reconciliation of Core Revenue
RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY Three months ended January 31, Percent 2025 2024 Inc/(Dec) Revenue $ 1,298 $ 1,259 3% Adjustments: Revenue from acquisitions or divestitures (6) — Currency impacts 10 — Core Revenue $ 1,302 $ 1,259 3% 12 Please refer to the last sl
Slide 13: Reconciliations of Core Revenue by Segment and Region
RECONCILIATIONS OF CORE REVENUE BY SEGMENT AND REGION (In millions) (Unaudited) PRELIMINARY Year-over-Year Revenue from acquisitions or Currency Revenue divestitures Adjustments Core Revenue Revenue by Segment Q1'25 Q1'24 YoY % Chg. Q1'25 Q1'25 Q1'25 Q1'24 YoY % Chg. Communications Solutions Group $
Slide 14: Revenue by End Markets
REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q1'25 Q1'24 Inc/(Dec) Aerospace, Defense and Government $ 311 $ 295 5% Commercial Communications 572 544 5% Electronic Industrial 415 420 (1)% Total Revenue $ 1,298 $ 1,259 3% 14 Please refer to the last slide for details on the us
Slide 15: Gross Margin Reconciliation
GROSS MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended January 31, 2025 2024 Gross Profit, as reported $ 820 $ 813 Amortization of acquisition-related balances 19 17 Share-based compensation 11 8 Acquisition and integration costs 1 — Restructuring an
Slide 16: Research & Development Expenses Reconciliation
RESEARCH & DEVELOPMENT EXPENSES RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Year-over-year Q1'25 Q1'24 Research & development expenses, as reported $ 249 $ 232 Share-based compensation (16) (13) Acquisition and integration costs (1) — Restructuring and others (2) (5) Non
Slide 17: Operating Margin Reconciliation
OPERATING MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended January 31, 2025 2024 Income from operations, as reported $ 218 $ 221 Amortization of acquisition-related balances 33 38 Share-based compensation 62 50 Acquisition and integration costs 28 17
Slide 18: Net Income and Diluted EPS Reconciliation
NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended January 31, 2025 2024 Net Income Diluted EPS Net Income Diluted EPS GAAP Net income $ 169 $ 0.97 $ 172 $ 0.98 Non-GAAP adjustments: Amortization of acquisition-related balances 3
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management uses both GAAP and non-GAAP financial measures to analyze and assess the overall performance of the business, to make operating decisions and to forecast and plan for future periods. We believe that our investors benefit from seeing our results “through the eye