Keysight Technologies, Inc. · KEYS · FY2025 Q2 · Calendar Q2 2025

Keysight raises FY2025 outlook on AI and optical demand

The supplied analysis supports a constructive but qualified view: AI data-center, optical, silicon-photonics, defense, and recurring software demand supported a raised outlook, while tariffs, wireless durability, China, budget timing, and acquisition execution could challenge the trajectory.

Reported After market closeNYSETechnology $65.19B market cap
80quality score

Earnings scorecard

Reported versus consensus
Reported EPS — Consensus $1.65
EPS surprise — Reported versus consensus
Reported revenue — Consensus $1.28B
Revenue surprise — Reported versus consensus

Market reaction

event-close to next-session close
Stock move -0.2% Event window
SPY move -1.7% Same window
Abnormal move +1.5% Stock minus SPY
Volume 2.6× Versus trailing sessions
Subsequent drift -1.9% Up to 20 sessions
KEYSSPY benchmark

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Transcript intelligence

What changed

Relative to the prior-quarter analysis, the supplied analysis shifts from maintained guidance to a raised FY2025 outlook, with stronger reported momentum across wireline, AI data-center, silicon photonics, and defense.

Guidance delta

The supplied analysis says management raised the FY2025 revenue outlook to the midpoint of 5–7% growth and expects EPS growth above its 10% long-term target, versus maintained guidance in the prior-quarter analysis.

Key takeaways

  • The supplied analysis describes a second consecutive quarter of growth, led by wireline, AI data-center, silicon photonics, and defense demand.
  • Management highlighted continued investment in AI, optical, silicon photonics, and software and services.
  • The analysis says tariff exposure was quantified and mitigation was expected to offset the impact by fiscal year-end.
  • The outlook improved from the prior-quarter analysis, but wireless, China, defense-budget timing, and execution remain watchpoints.

Management priorities

  • Expand AI data-center, optical, silicon photonics, and digital-twin test capabilities.
  • Launch higher-frequency phase-noise and 224 Gb transceiver analysis products.
  • Complete and integrate the Spirent, Optical Solutions Group, and PowerArtist transactions.
  • Grow software, services, simulation, and recurring-revenue offerings.

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Earnings History

Estimate Beat Miss Match
KEYS EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 2 future estimate-only quarters. Q1 '24 estimate $1.59 Q1 '24 actual $1.63, beat Q2 '24 estimate $1.39 Q2 '24 actual $1.41, beat Q3 '24 estimate $1.35 Q3 '24 actual $1.57, beat Q3 '25 estimate $1.67 Q3 '25 actual $1.72, beat Q4 '25 estimate $1.83 Q4 '25 actual $1.91, beat Q1 '26 estimate $2.00 Q1 '26 actual $2.17, beat Q2 '26 estimate $2.32 Q2 '26 actual $2.87, beat Q3 '26 estimate $2.48 Q3 '26 actual $3.07, beat Q4 '26 estimate $3.37 Q1 '27 estimate $3.21
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Analyst Consensus ?

ConsensusBuy16 ratings
Bullish1381.3%
Neutral318.7%
Bearish00.0%

Analyst 52W Price Targets

$380.57Current
$150Low
$304.86Average
$440High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 9, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Goldman Sachs Buy BuyMaintainOct 6, 2026
Wells Fargo Overweight OverweightMaintainAug 19, 2026
UBS Buy BuyMaintainAug 19, 2026
Truist Securities Hold HoldMaintainAug 19, 2026
Susquehanna Positive PositiveMaintainAug 19, 2026
Morgan Stanley Overweight OverweightMaintainAug 19, 2026
JP Morgan Overweight OverweightMaintainAug 19, 2026
Barclays Overweight OverweightMaintainAug 19, 2026
Baird Outperform OutperformMaintainAug 19, 2026
Citigroup Buy BuyMaintainMay 21, 2026
Jefferies Hold HoldMaintainDec 10, 2025
B of A Securities Neutral NeutralMaintainAug 20, 2025
Deutsche Bank Buy BuyMaintainNov 20, 2024
Credit Suisse Outperform OutperformMaintainNov 23, 2021
Stifel Nicolaus Buy BuyMaintainNov 27, 2019
Stifel Buy BuyMaintainNov 27, 2019
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Named analyst price targets

Upside is calculated against the persisted current price $380.57. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Morgan StanleyAnalyst unavailable$425$319.23 +11.7%Aug 19, 2026
UBSAnalyst unavailable$440$323.15 +15.6%Aug 19, 2026
Truist FinancialAnalyst unavailable$400$341.3 +5.1%Aug 19, 2026
SusquehannaAnalyst unavailable$440$341.3 +15.6%Aug 19, 2026
Robert W. BairdQuinn Fredrickson$410$341.3 +7.7%Aug 19, 2026
Wells FargoAnalyst unavailable$405$341.3 +6.4%Aug 19, 2026
BarclaysAnalyst unavailable$429$341.3 +12.7%Aug 19, 2026
Morgan StanleyMeta Marshall$400$322.05 +5.1%Jul 13, 2026
Truist FinancialAnalyst unavailable$376$335.16 -1.2%May 21, 2026
UBSAnalyst unavailable$420$345.77 +10.4%May 20, 2026
Morgan StanleyAnalyst unavailable$350$346.58 -8.0%May 20, 2026
SusquehannaAnalyst unavailable$425$343.99 +11.7%May 20, 2026
Wells FargoAnalyst unavailable$390$343.99 +2.5%May 20, 2026
Robert W. BairdAnalyst unavailable$385$343.99 +1.2%May 20, 2026
BarclaysAnalyst unavailable$387$343.99 +1.7%May 20, 2026
SusquehannaAnalyst unavailable$415$346.32 +9.0%May 18, 2026
Morgan StanleyAnalyst unavailable$305$361.55 -19.9%May 15, 2026
Goldman SachsAnalyst unavailable$384$331.11 +0.9%Apr 14, 2026
UBSAnalyst unavailable$340$245 -10.7%Feb 24, 2026
SusquehannaAnalyst unavailable$300$245 -21.2%Feb 24, 2026
Morgan StanleyMeta Marshall$268$245 -29.6%Feb 24, 2026
Goldman SachsMark Delaney$322$245 -15.4%Feb 24, 2026
BarclaysTim Long$320$245 -15.9%Feb 24, 2026
Robert W. BairdAnalyst unavailable$257$239.54 -32.5%Feb 20, 2026
Robert W. BairdRichard Eastman$230$219 -39.6%Feb 2, 2026
Goldman SachsAnalyst unavailable$243$214.29 -36.1%Jan 15, 2026
Morgan StanleyAnalyst unavailable$227$204.87 -40.4%Dec 17, 2025
JefferiesSaree Boroditsky$220$210.52 -42.2%Dec 10, 2025
Robert W. BairdAnalyst unavailable$210$195.46 -44.8%Nov 26, 2025
JefferiesAnalyst unavailable$195$194.14 -48.8%Nov 25, 2025
SusquehannaAnalyst unavailable$225$190.57 -40.9%Nov 25, 2025
Morgan StanleyAnalyst unavailable$208$177.67 -45.3%Nov 25, 2025
UBSAnalyst unavailable$230$177.67 -39.6%Nov 25, 2025
Wells FargoAaron Rakers$225$177.67 -40.9%Nov 25, 2025
BarclaysAnalyst unavailable$232$177.67 -39.0%Nov 25, 2025
Goldman SachsMark Delaney$232$177.67 -39.0%Nov 25, 2025
UBSAnalyst unavailable$220$183.51 -42.2%Nov 11, 2025
JefferiesAnalyst unavailable$180$169.47 -52.7%Oct 27, 2025
Morgan StanleyAnalyst unavailable$180$171.1 -52.7%Oct 10, 2025
Deutsche BankMatthew Niknam$175$155.01 -54.0%Aug 23, 2024
Goldman SachsMark Delaney$181$153.19 -52.4%Aug 21, 2024
Bank of America SecuritiesDavid Ridley-Lane$150$138.57 -60.6%Aug 21, 2024
SusquehannaMehdi Hosseini$185$154.42 -51.4%Aug 21, 2024
BarclaysTim Long$158$138.57 -58.5%Aug 21, 2024
SusquehannaMehdi Hosseini$195$148.16 -48.8%May 21, 2024
Robert W. BairdRichard Eastman$167$159.75 -56.1%May 21, 2024
Goldman SachsMark Delaney$175$159.75 -54.0%May 21, 2024
BarclaysTim Long$151$159.75 -60.3%May 21, 2024
BarclaysTim Long$202$148.8 -46.9%May 16, 2023
Industrial Alliance SecuritiesMark Delaney$196$185.2 -48.5%Dec 13, 2022
Morgan StanleyAnalyst unavailable$184$183.1 -51.7%Dec 13, 2022
UBSAnalyst unavailable$205$173.59 -46.1%Nov 29, 2022
SusquehannaAnalyst unavailable$200$169.64 -47.4%Nov 18, 2022
Deutsche BankAnalyst unavailable$190$170.36 -50.1%Nov 18, 2022
Morgan StanleyAnalyst unavailable$170$173.22 -55.3%Nov 14, 2022
Deutsche BankMatthew Niknam$193$169.29 -49.3%Aug 18, 2022
SusquehannaMehdi Hosseini$222$136 -41.7%May 18, 2022
Goldman SachsMark Delaney$192$176.83 -49.5%Sep 26, 2021
Bank of America SecuritiesDavid Ridley Lane$181$166.69 -52.4%Aug 19, 2021
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Company context

Snapshot as of publication

Keysight Technologies, Inc. specializes in providing advanced electronic design and testing solutions to a diverse array of global industries, spanning commercial communications, networking, aerospace, defense, government, automotive, energy, semiconductor manufacturing, general electronics, and education. The company's operations extend across the Americas, Europe, and the Asia Pacific region. Its Communications Solutions Group focuses on electronic design automation (EDA) software and sophisticated radio frequency (RF) and microwave testing systems, along with associated software. This segment also delivers cutting-edge hardware and virtual platforms for network testing, addressing areas such as data centers, routing and switching, software-defined networking (SDN), security, and encryption.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2025-05-14T22:56:09.277164+00:00
  3. Polygon adjusted daily market bars · 2026-10-09T15:30:43.546926+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-09T15:30:43.544059+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-09. For educational purposes only; not investment advice.