Electronic equipment maker Keysight Technologies on Tuesday said it will divest Spirent Communications' high-speed ethernet and other business lines to VIAVI Solutions as part of a consent agreement with the U.S. Department of Justice.
Explore Keysight's (KEYS) international revenue trends and how these numbers impact Wall Street's forecasts and what's ahead for the stock.
While Keysight is well-positioned for secular growth (6G, AI), the current stock price may already reflect much of this future optimism, limiting the immediate upside. Keysight's stock (around $161.74) appears to have a high forward P/E of 24x, potentially outpacing its "gradual recovery" forecast. The pending Spirent LSA acquisition (closing Q3'25) offers software growth potential but also brings integration complexities and execution risks to watch closely.
KEYS reports year-over-year top-line growth backed by healthy demand in multiple verticals.
Keysight delivered better-than-expected Q2 results and guidance, signaling business stabilization and encouraging order growth, especially in AI data centers and industrial segments. Tariff impacts are manageable and largely one-time, with the company's diversified supply chain and limited China exposure mitigating long-term risks. Strong cost management, robust free cash flow, and a healthy balance sheet support the business, but valuation remains stretched at over 23x earnings.
Keysight Technologies, Inc. (NYSE:KEYS ) Q2 2025 Earnings Conference Call May 20, 2025 4:30 PM ET Company Participants Paulenier Sims - Director of Investor Relations Satish Dhanasekaran - President and Chief Executive Officer Neil Dougherty - Executive Vice President and Chief Financial Officer Mark Wallace - Senior Vice President and Chief Customer Officer Conference Call Participants Tim Long - Barclays Matt Niknam - Deutsche Bank Mark Delaney - Goldman Sachs Meta Marshall - Morgan Stanley Aaron Rakers - Wells Fargo Robert Jamieson - Vertical Research Rob Mason - Baird Adam Thalhimer - Thompson Davis Samik Chatterjee - JPMorgan Mehdi Hosseini - Susquehanna Operator Good day, ladies and gentlemen, and welcome to Keysight Technologies Fiscal Second Quarter 2025 Earnings Conference Call. My name is Tamiya and I will be your lead operator today.
While the top- and bottom-line numbers for Keysight (KEYS) give a sense of how the business performed in the quarter ended April 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Keysight (KEYS) came out with quarterly earnings of $1.70 per share, beating the Zacks Consensus Estimate of $1.64 per share. This compares to earnings of $1.41 per share a year ago.
Strong rebound: stock up 23% in May after 4 consecutive EPS beats. EPS expected to grow 17% YoY on modest 5% revenue gain.
Get a deeper insight into the potential performance of Keysight (KEYS) for the quarter ended April 2025 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
Keysight (KEYS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
KEYS is expected to report year-over-year revenue growth in the second quarter of fiscal 2025, driven by healthy demand across both segments.