Slide 1: Keysight Technologies Q2 Fiscal Year 2025 Results
Keysight Technologies Q2 Fiscal Year 2025 Results May 20, 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: Q2'25 Highlights
Q2’25 Highlights • Q2 revenue of $1.3B (+7% y/y) and earnings per share1 of $1.70 (+21% y/y). Revenue and earnings per share above • Second consecutive quarter of overall revenue growth. 1 high end of guidance range • Continued momentum in CSG (+9%) and return to growth in EISG (+5%). • Core operati
Slide 4: Q2'25 Non-GAAP Financial Highlights
Q2’25 Non-GAAP Financial Highlights Orders Revenue Operating Margin EPS $1.316B $1.306B 25.2% $1.70 +8%y/y (+8%core*) +7%y/y (+8% core*) +100 basis points y/y +21%y/y * Core excludes the impact of currency, acquisitions or divestitures closed in last twelve months; reconciliations included. Reconcil
Slide 5: Revenue by Segment & by Region
Revenue by Segment & by Region Q2'25 Revenue: $1.306B 5
Slide 6: Revenue Trend by Region
Revenue Trend by Region +4% y/y (+4% core*): Revenue growth in -2% y/y (-2% core*): EI revenue declined. +16% y/y (+17% core*): Revenue growth CC and EI with modest decline in ADG. Revenue growth in ADG and CC was flat. in CC, ADG, and EI. Key: * Core excludes the impact of currency, acquisitions or
Slide 7: Q2'25 Communications Solutions Group Highlights
Q2’25 Communications Solutions Group Highlights Revenue $913M • Commercial Communications: Revenue grew y/y for a third consecutive quarter. Double-digit order growth reflected sustained demand for AI data +9% y/y (+9% core*) center network solutions and applications Operating Margin • Aerospace,
Slide 8: Q2'25 Electronic Industrial Solutions Group Highlights
Q2’25 Electronic Industrial Solutions Group Highlights Revenue • Automotive: Revenue and orders declined, while business has largely $393M stabilized, and OEM engagement remains steady. +5% y/y (5 core*) • Semiconductor: Revenue and orders grew with strong foundry and IDM demand. AI performance requ
Slide 9: Q2'25 Revenue By End Market
Q2’25 Revenue By End Market End Market Revenue YoY % Commercial $612M +9% Communications Aerospace, Defense & $301M +9% Government Electronic Industrial $393M +5% Solutions Total $1,306M +7% 9
Slide 10: Guidance and Financial Considerations
Guidance and Financial Considerations Q3'25 Guidance Revenue $1.305B – $1.325B Non-GAAP Earnings per share $1.63 – $1.69 Q3'25 Financial Assumptions • Interest Income, Interest Expense and Other Income/Expense: ~$13-15M net income per quarter • Non-GAAP tax rate of 14% for Q3'25 and FY25 • Guidance
Slide 11: Reconciliations
WW KEYSIGHT Reconciliations
Slide 12: Reconciliation of Core Revenue
RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, Percent Percent 2025 2024 Inc/(Dec) 2025 2024 Inc/(Dec) Revenue $ 1,306 $ 1,216 7% $ 2,604 $ 2,475 5% Adjustments: Revenue from acquisitions or divestitures (4) — (10) — Curre
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 YoY % YoY % Revenue by Segment Q2'25 Q2'24 Chg. Q2'25 Q2'25 Q2'25 Q2'24 Chg. Communications Solutions Group $
Slide 14: Revenue by End Markets
REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q2'25 Q2'24 Inc/(Dec) Aerospace, Defense and Government $ 301 $ 277 9% Commercial Communications 612 563 9% Electronic Industrial 393 376 5% Total Revenue $ 1,306 $ 1,216 7% Please refer to the last slide for details on the use of
Slide 15: Gross Margin Reconciliation
GROSS MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2025 2024 2025 2024 Gross Profit, as reported $ 814 $ 763 $ 1,634 $ 1,576 Amortization of acquisition-related balances 20 17 39 34 Share-based compensation 9
Slide 16: Operating Margin Reconciliation
OPERATING MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2025 2024 2025 2024 Income from operations, as reported $ 207 $ 177 $ 425 $ 398 Amortization of acquisition-related balances 34 37 67 75 Share-based compe
Slide 17: Reconciliation of Core Operating Margin
RECONCILIATION OF CORE OPERATING MARGIN (In millions) (Unaudited) PRELIMINARY Three months ended April 30, 2025 2024 Non-GAAP income from operations $ 328 $ 294 Adjustments: Operating profit from acquisitions or divestitures 2 — Currency impacts 5 — Core Income from operations $ 335 $ 294 Core Reven
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 Six months ended April 30, April 30, 2025 2024 2025 2024 Net Diluted Net Diluted Net Diluted Net Diluted Income EPS Income EPS Income EPS Income EPS GAAP Net income $ 257 $ 1.49
Slide 19: Free Cash Flow
FREE CASH FLOW (In millions) (Unaudited) PRELIMINARY Three months ended April 30, 2025 2024 Net cash provided by operating activities $ 484 $ 110 Less: Investments in property, plant and equipment (27) (36) Free cash flow $ 457 $ 74 Please refer to the last slide for details on the use of non-GAAP f
Slide 20: 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