Premarket Movers: Keysight Technologies’ Shares Gain After Firm Reports Strong Q2 Results

Keysight Technologies, Inc. (NYSE: KEYS) shares jumped over 5% in premarket trading after the electronic design and test solutions provider reported better-than-expected second-quarter fiscal 2025 results and raised its full-year growth outlook.

Keysight Technologies Reports Better than Expected Q2 FY’25 Results

Keysight Technologies delivered strong second-quarter results for the period ended April 30, 2025, with revenue reaching $1.31 billion compared to $1.22 billion in the same quarter last year, representing a 7% year-over-year increase. The company’s non-GAAP earnings per share climbed to $1.70, up from $1.41 in Q2 2024, significantly surpassing analyst estimates.

“Keysight delivered strong second quarter results with revenue and earnings per share above the high end of guidance. This quarter’s performance underscores the strength of our long-term strategy, deep customer engagement and disciplined execution,” said Satish Dhanasekaran, Keysight’s President and CEO.

The company’s performance was particularly strong in its Communications Solutions Group (CSG), which reported revenue of $913 million, up 9% from the prior year. This growth reflected balanced 9% increases in both commercial communications and aerospace, defense, and government segments. Meanwhile, the Electronic Industrial Solutions Group (EISG) posted revenue of $393 million, up 5% year-over-year, driven by growth in semiconductor and general electronics, partially offset by declines in automotive and energy sectors.

Keysight’s free cash flow showed remarkable improvement, reaching $457 million compared to $74 million in the second quarter of 2024. As of April 30, 2025, the company’s cash and cash equivalents totaled $3.12 billion.

Join our Telegram group and never miss a breaking digital asset story.

Keysight Technologies, Inc. (KEYS) Raises Full-Year Growth Expectations

Following the strong quarterly performance, Keysight raised its full-year growth expectations. “Even as we are monitoring the overall macroeconomic environment, we continue to see a healthy funnel of opportunities and are raising full-year growth expectations to the midpoint of our long-term 5-7% target,” Dhanasekaran noted.

For the third fiscal quarter of 2025, Keysight expects revenue to be in the range of $1.305 billion to $1.325 billion. Non-GAAP earnings per share for the third quarter are projected to be between $1.63 and $1.69, based on approximately 173 million weighted diluted shares.

In response to the positive earnings report, Keysight’s stock jumped significantly in premarket trading. As of 8:44:56 AM EDT on May 21, 2025, KEYS shares were trading at $171.23, up $8.43 or 5.18% from the previous close of $162.80. This surge comes after the stock had been relatively flat, with a modest year-to-date return of just 1.35%, underperforming the S&P 500’s YTD gain of 11.91%.

The company’s current market capitalization stands at approximately $28.13 billion, with the stock trading at a forward P/E ratio of 23.04. Analyst sentiment remains positive, with an average price target of $181.09, suggesting potential further upside from current levels.

Keysight Technologies, which offers electronic design and test solutions worldwide, employs approximately 15,500 people. As an S&P 500 company, it delivers market-leading design, emulation, and test solutions to help engineers develop and deploy technologies more efficiently across various sectors including communications, aerospace, defense, automotive, and semiconductor industries.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.