Keysight Technologies, Inc. has recently released its 10-Q report, detailing its performance for the three and nine months ended July 31, 2025. The company, founded in 1939 and headquartered in Santa Rosa, California, provides electronic design and test solutions globally. It operates in two segments, Communications Solutions Group and Electronic Industrial Solutions Group, offering a wide range of electronic design and test instruments, software, and services.
In the three months ended July 31, 2025, Keysight Technologies reported total revenue of $940 million, an 11% increase from the same period last year. For the nine months ended July 31, 2025, total revenue was $2.736 billion, representing an 8% increase from the same period last year. The company's Communications Solutions Group (CSG) saw revenue increase by 11% and 8% for the three and nine months ended July 31, 2025, respectively, compared to the same periods last year. This growth was primarily driven by higher investments in high-speed networks, AI capabilities, and aerospace, defense, and government solutions.
In terms of financial performance, the gross margin for the three months ended July 31, 2025, remained flat compared to the same period last year. However, for the nine months ended July 31, 2025, the gross margin decreased by 1 percentage point compared to the same period last year. Research and development expenses increased by 14% and 13%, while selling, general, and administrative expenses increased by 8% and 4% for the three and nine months ended July 31, 2025, respectively, compared to the same periods last year. Operating margin for both the three and nine months ended July 31, 2025, remained flat compared to the same periods last year.
The effective tax rate for the three and nine months ended July 31, 2025, was 20.8% and 18.8%, respectively. This was lower than the U.S. statutory federal income tax rate primarily due to a lower effective tax rate on foreign earnings, partially offset by U.S. taxes on those earnings and the impact of Pillar Two minimum taxes.
Keysight Technologies is closely monitoring the impact of the One Big Beautiful Bill Act (“OBBBA”) and the global minimum tax framework, commonly referred to as Pillar Two, on its tax rate and financial position. The company is also engaged in ongoing tax examinations and audits in various jurisdictions and continues to assess the potential impact on its financial statements.
Today the company's shares have moved -1.86% to a price of $163.43. For more information, read the company's full 10-Q submission here.
