884088da6264b3a415970ffeae38267808d5cdc0a713360b8d201d13b4fbcdaa

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

49266d9dc8d240afd995bf66017fe057366c4bd425744ecfba891285a8d3056c

30ef38516284e8a6cd6b389dab344bc87f4dbc8dca2a35604f3766b006d8c955

Keysight Technologies, Inc. is a global leader in the computing, communications, and electronics market, dedicated to enhancing customer success by tackling critical challenges in product development and commercialization. The company provides a wide array of design and test solutions that support engineering workflows in designing, manufacturing, deploying, and optimizing products and solutions **[0001601046-23-000134_keys-20231031.htm:4]** **[0001601046-24-000061_keys-20240731.htm:31]**. Keysight's offerings include hardware, software, and services utilized across various industries such as communications, aerospace defense, government, automotive, energy, industrial, general electronics, and semiconductor **[0001601046-23-000134_keys-20231031.htm:4]**.

1. **R&D Solutions** - Offers design and test solutions primarily for research and development applications, driving innovation and product development across multiple industries.
2. **Communications Solutions Group** - Develops solutions for the communications sector, adapting to market demand fluctuations and enhancing connectivity technologies **[KEYS_3390030_1]** **[KEYS_3374054_1]**.
3. **Software Solutions** - Expands software offerings for simulation and emulation, bolstered by the acquisition of ESI Group SA, to improve product design and testing capabilities **[KEYS_3374054_1]**.
4. **Manufacturing and Operations Solutions** - Provides tools and services for manufacturing and operational applications, supporting efficient production and deployment processes.
5. **Recurring Software and Services** - Focuses on stable revenue streams through recurring software and service offerings, contributing significantly to the company's revenue growth **[KEYS_3401176_4]**.

1be88400e0e7a0832aafbaec36057215672b73b506bd5c2584b0b0994b60000c

Americas

- CSG Revenue

- EISG Revenue

Europe

Asia Pacific

Japan

Other

Total Revenue

5462a52931acd09ec0884f6568ac1ddd8736852c6e69b8af9ce2aed97176827d

| Geographical Segment | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Americas (USD million)** | **561**  **[0001601046-23-000015_keys-20230131.htm:6]**  | **517**  **[0001601046-23-000054_keys-20230430.htm:6]**  | **556**  **[0001601046-23-000073_keys-20230731.htm:6]**  | N/A | **514**  **[0001601046-24-000005_keys-20240131.htm:9]**  | **492**  **[0001601046-24-000043_keys-20240430.htm:9]**  | **500**  **[0001601046-24-000061_keys-20240731.htm:10]**  | **500**  **[0001601046-24-000061_keys-20240731.htm:10]**  |
| **Europe (USD million)**   | **257**  **[0001601046-23-000015_keys-20230131.htm:6]**  | **229**  **[0001601046-23-000054_keys-20230430.htm:6]**  | **243**  **[0001601046-23-000073_keys-20230731.htm:6]**  | N/A | **255**  **[0001601046-24-000005_keys-20240131.htm:9]**  | **228**  **[0001601046-24-000043_keys-20240430.htm:9]**  | **221**  **[0001601046-24-000061_keys-20240731.htm:10]**  | **221**  **[0001601046-24-000061_keys-20240731.htm:10]**  |
| **Asia Pacific (USD million)** | **563**  **[0001601046-23-000015_keys-20230131.htm:6]**  | **644**  **[0001601046-23-000054_keys-20230430.htm:6]**  | **583**  **[0001601046-23-000073_keys-20230731.htm:6]**  | N/A | **490**  **[0001601046-24-000005_keys-20240131.htm:9]**  | **496**  **[0001601046-24-000043_keys-20240430.htm:9]**  | **496**  **[0001601046-24-000061_keys-20240731.htm:10]**  | **496**  **[0001601046-24-000061_keys-20240731.htm:10]**  |

8547a6df82efa6ec98da8f0222f821b8710fdf08255feae63c3690312d1bcf93

| Metric [USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Communications Solutions Group (CSG) | **939**  **[0001601046-23-000008_exhibit991-q123pressrelease.htm:0]**  | **937**  **[0001601046-23-000038_exhibit991-q223pressrelease.htm:0]**  | **918**  **[0001601046-23-000070_exhibit991-q323pressrelease.htm:0]**  | **891**  **[0001601046-23-000099_exhibit991-q423pressrelease.htm:0]** **[KEYS_3367735_4]** **[KEYS_3367735_9]**  | **839**  **[0001601046-24-000002_exhibit991-q124pressrelease.htm:0]**  | **840**  **[0001601046-24-000033_exhibit991-q224pressrelease.htm:0]**  | **847**  **[0001601046-24-000055_exhibit991-q324pressrelease.htm:0]**  | **894**  **[0001601046-24-000072_exhibit991-q424pressrelease.htm:0]**  |
| Electronic Industrial Solutions Group (EISG) | **442**  **[0001601046-23-000008_exhibit991-q123pressrelease.htm:0]** **[0001601046-23-000015_keys-20230131.htm:28]**  | **453**  **[KEYS_3252166_3]**  | **464**  **[KEYS_3385012_4]**  | **420**  **[0001601046-23-000099_exhibit991-q423pressrelease.htm:0]**  | **420**  **[0001601046-24-000002_exhibit991-q124pressrelease.htm:0]** **[0001601046-24-000002_exhibit991-q124pressrelease.htm:4]**  | **376**  **[0001601046-24-000033_exhibit991-q224pressrelease.htm:0]** **[0001601046-24-000033_exhibit991-q224pressrelease.htm:4]**  | **370**  **[0001601046-24-000055_exhibit991-q324pressrelease.htm:0]** **[0001601046-24-000055_exhibit991-q324pressrelease.htm:5]**  | **393**  **[0001601046-24-000072_exhibit991-q424pressrelease.htm:0]**  |
| Total Revenue | **1,380**  **[0001601046-23-000008_exhibit991-q123pressrelease.htm:0]** **[0001601046-23-000015_keys-20230131.htm:28]**  | **1,390**  **[0001601046-24-000033_exhibit991-q224pressrelease.htm:0]** **[0001601046-24-000033_exhibit991-q224pressrelease.htm:4]**  | **1,382** [N/A] | **1,311** [N/A] | **1,259**  **[0001601046-24-000002_exhibit991-q124pressrelease.htm:0]** **[0001601046-24-000002_exhibit991-q124pressrelease.htm:4]**  | **1,216**  **[0001601046-24-000033_exhibit991-q224pressrelease.htm:0]** **[0001601046-24-000033_exhibit991-q224pressrelease.htm:4]**  | **1,217**  **[0001601046-24-000055_exhibit991-q324pressrelease.htm:0]** **[0001601046-24-000055_exhibit991-q324pressrelease.htm:5]**  | **1,290**  **[0001601046-24-000072_exhibit991-q424pressrelease.htm:0]**  |

05b3e5c1d2dabd242d0bd0b8b600e03c388e7df84e7e0e36a6a918a06e29b6c1

1. Given the concentrated nature of AI-driven wireline growth heavily reliant on hyperscaler investments, how sustainable do you believe this trend is, and what steps are you taking to mitigate potential slowdowns in hyperscaler spending?
2. With double-digit declines in orders and revenue in the automotive sector and delays in EV and battery testing projects, what strategies are you implementing to address this weakness, and when do you anticipate a meaningful turnaround?
3. The delays in U.S. defense budget approvals have impacted your aerospace, defense, and government business; how significant is this impact, and what contingency plans do you have if these delays continue longer than expected?
4. You mentioned expecting a gradual recovery in 2025 despite mixed signals in your end markets; what gives you confidence in this outlook, and what are the key risks that could potentially derail this recovery?
5. Regarding the pending acquisition of Spirent, can you elaborate on how this acquisition aligns with your strategic objectives, what synergies you expect to achieve, and whether you foresee any challenges in integration or regulatory approval processes?

49aa9b46c9cd9cf4a5f1b7d50396134f26a63d06922d2334d6358713a309d67c

Communications Solutions Group

Electronic Industrial Solutions Group

Ixia Solutions Group

Services Solutions Group

Measurement Solutions

Customer Support and Services

Products

Services and Other

Aerospace, Defense & Government

Commercial Communications

Electronic Industrial

6d083cc04158c5e34e5b4e05627e5078e2ee5fd79a67ae1e372751de3f2e2f47

| Name              | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|-------------------|--------------------------------------------------------------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Satish Dhanasekaran | President and Chief Executive Officer                                   | May 2022           | Satish Dhanasekaran has served as the President and Chief Executive Officer of Keysight Technologies since May 2022. Prior to this role, he was the Senior Vice President and Chief Operating Officer from October 2020 to April 2022. He also served as the Senior Vice President and President of the Communications Solutions Group from July 2017 to September 2020  **[0001601046-23-000134_keys-20231031.htm:22]** **[0001140361-24-004271_ny20012908x3_def14a.htm:15]** **[0001140361-24-002905_ny20012908x2_pre14a.htm:15]** . |
| Neil Dougherty    | Executive Vice President and Chief Financial Officer                     | May 2022           | Neil Dougherty has served as Executive Vice President and Chief Financial Officer of Keysight Technologies since May 2022. Prior to this role, he was the Senior Vice President and Chief Financial Officer from December 2013. Before joining Keysight, he served as Vice President and Treasurer of Agilent from 2012 to December 2013  **[0001601046-23-000134_keys-20231031.htm:22]** .                             |
| Huei Sin Ee       | Senior Vice President and President of the Electronic Industrial Solutions Group | October 2020       | Huei Sin Ee has served as Senior Vice President and President of the Electronic Industrial Solutions Group at Keysight since October 2020. Prior to this role, she was Vice President and General Manager of Keysight's General Electronics Measurement Solutions from November 2015 to October 2020  **[0001601046-23-000134_keys-20231031.htm:22]** .                                                                 |
| Ingrid Estrada    | Senior Vice President, Chief People and Administrative Officer, and Chief of Staff | August 2017        | Ingrid Estrada has served as Senior Vice President, Chief People and Administrative Officer, and Chief of Staff at Keysight since August 2017. Prior to this role, she was Keysight's Senior Vice President of Human Resources from December 2013 until August 2017  **[0001601046-23-000134_keys-20231031.htm:22]** .                                                                                                  |
| Soon Chai Gooi    | Senior Vice President, Order Fulfillment and Digital Operations           | October 2020       | Soon Chai Gooi has served as Senior Vice President, Order Fulfillment and Digital Operations at Keysight since October 2020. Prior to this role, he was the Senior Vice President and President of the Electronic Industrial Solutions Group from November 2015 to October 2020  **[0001601046-23-000134_keys-20231031.htm:22]** .                                                                                           |
| Jeffrey Li        | Senior Vice President, General Counsel, and Secretary                     | July 2019          | Jeffrey Li has served as Senior Vice President, General Counsel, and Secretary of Keysight Technologies since July 2019. Prior to this role, he was Vice President, Assistant General Counsel, and Assistant Secretary of Keysight from December 2013 to July 2019  **[0001601046-23-000134_keys-20231031.htm:22]** **[0001601046-22-000161_keys-20221031.htm:25]** .                                                                                                     |
| Kailash Narayanan | Senior Vice President and President of the Communications Solutions Group | November 2021      | Kailash Narayanan has served as Keysight's Senior Vice President and President of the Communications Solutions Group since November 2021. Prior to this role, he served as President of the Commercial Communications business from November 2020 until November 2021  **[0001601046-23-000134_keys-20231031.htm:22]** **[0001601046-22-000161_keys-20221031.htm:26]** .                                                                                                    |
| John Page         | Senior Vice President and President of Global Services                    | November 2015      | John Page has served as Senior Vice President and President of Global Services at Keysight since November 2015. Prior to this role, he was the Vice President of business finance at Keysight from February 2014 to November 2015  **[0001601046-23-000134_keys-20231031.htm:23]** **[0001601046-22-000161_keys-20221031.htm:26]** .                                                                                                                                       |
| Lisa Poole        | Vice President, Corporate Controller and Principal Accounting Officer     | August 2023        | Lisa Poole has served as Vice President, Corporate Controller and Principal Accounting Officer of Keysight since August 2023. Prior to this role, she served as Vice President, Assistant Corporate Controller from May 2022 to August 2023  **[0001601046-23-000134_keys-20231031.htm:23]** .                                                                                                                               |
| Mark Wallace      | Senior Vice President, Chief Customer Officer                             | September 2022     | Mark Wallace has served as Senior Vice President and Chief Customer Officer at Keysight since September 2022. Prior to this role, he was the Senior Vice President of Worldwide Sales from November 2016 to September 2022. Mark Wallace announced his intent to retire from Keysight by the end of May 2025 for personal reasons  **[0001601046-24-000065_keys-20241104.htm:1]** **[0001601046-23-000134_keys-20231031.htm:23]** **[0001601046-22-000161_keys-20221031.htm:26]** .                                    |

3e08ecb8974e5fd8ca91ac31b8edeb69026e5cae92f2a83874e5a5ddd45384a4

**Quarterly guidance for Q4 2024:**
- **Revenue**: $1.245B–$1.265B  **[KEYS_3399374_3]**  (no change from $1.245B–$1.265B   )  
- **Earnings per Share (EPS)**: $1.53–$1.59  **[KEYS_3399374_3]**  (no change from $1.53–$1.59   )  
- **Weighted Diluted Share Count**: 174 million  **[KEYS_3399374_3]**  (no change from 174 million   )  

2cfad167eee4aa302995957fc935f1ec0ef31f9b8d0727ab5dea734604edccb0

### Q4 2024 Earnings Call
   - **Issued Period**: Q4 2024
   - **Guided Period**: Q4 2024
   - **Guidance**:
     - **Revenue**: Expected to be in the range of **$1.245 billion to $1.265 billion**  **[KEYS_3399374_3]** .
     - **Earnings per Share (EPS)**: Expected to be in the range of **$1.53 to $1.59**  **[KEYS_3399374_3]** .
     - **Weighted Diluted Share Count**: Approximately **174 million shares**  **[KEYS_3399374_3]** .

### Q3 2024 Earnings Call
   - **Issued Period**: Q3 2024
   - **Guided Period**: Q4 2024
   - **Guidance**:
     - **Revenue**: Expected to be in the range of **$1.245 billion to $1.265 billion**  **[KEYS_3399374_3]** .
     - **Earnings per Share (EPS)**: Expected to be in the range of **$1.53 to $1.59**  **[KEYS_3399374_3]** .
     - **Weighted Diluted Share Count**: Approximately **174 million shares**  **[KEYS_3399374_3]** .

### Q2 2024 Earnings Call
   - **Issued Period**: Q2 2024
   - **Guided Period**: Q3 2024 and FY 2024
   - **Guidance**:
     - **Third Quarter Revenue**: Expected to be in the range of **$1.180 billion to $1.200 billion**  **[KEYS_3390030_4]** .
     - **Third Quarter Earnings Per Share (EPS)**: Expected to be in the range of **$1.30 to $1.36**, based on a weighted diluted share count of approximately 175 million shares  **[KEYS_3390030_4]** .
     - **Full Year Revenue**: The base case scenario assumes a mid-single-digit increase in revenue from Q3 to Q4, which implies full year revenue of approximately **$4.9 billion**  **[KEYS_3390030_4]** .

### Q1 2024 Earnings Call
   - **Issued Period**: Q1 2024
   - **Guided Period**: Q2 2024
   - **Guidance**:
     - **Revenue**: Expected to be in the range of **$1.19 billion to $1.21 billion**  **[KEYS_3374054_4]** .
     - **Earnings per Share (EPS)**: Expected to be in the range of **$1.34 to $1.40** based on a weighted diluted share count of approximately **175 million shares**  **[KEYS_3374054_4]** .
     - **ESI Revenue**: Includes approximately **$25 million** in ESI revenue  **[KEYS_3374054_4]** .
     - **Earnings Dilution from ESI**: A few cents of earnings dilution from ESI are expected  **[KEYS_3374054_4]** .

5d0674d3436680563ad7b0fb2d9418f87a82e0b262464230932aaf51077f4b06

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | March 6, 2023  **[0001601046-24-000159_keys-20241031.htm:139]** **[0001601046-24-000159_keys-20241031.htm:66]**  |
| End Date/Duration        | No expiration date  **[0001601046-24-000159_keys-20241031.htm:139]** **[0001601046-24-000159_keys-20241031.htm:66]**  |
| Total additional amount  | **$1,500 million**  **[0001601046-24-000159_keys-20241031.htm:139]** **[0001601046-24-000159_keys-20241031.htm:66]**  |
| Remaining authorization amount | **$485 million** as of October 31, 2024  **[0001601046-24-000159_keys-20241031.htm:139]** **[0001601046-24-000159_keys-20241031.htm:66]**  |
| Details                  | The program can be commenced, suspended, or discontinued at any time at the company's discretion  **[0001601046-24-000159_keys-20241031.htm:139]** **[0001601046-24-000159_keys-20241031.htm:66]**  |

d03d6ce42eeaba92544d69c64ac5f9a4efbdfb19ea8dc735ef9811e21985c7e9

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 2013  **[0001601046-24-000159_keys-20241031.htm:86]**    | Present  | Current auditor   |

906d46f98c048308bb81bc77f1b006ae0c4bbe67a8f066bfd32e44bce8b8bdb7

8b0d87540cb1779c68716f6e58c16fb41dac00a90f4073ed2567cc298df7a912

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1.287 billion (-2% YoY from $1.311 billion)  **[0001601046-24-000159_keys-20241031.htm:86]** **[0001601046-23-000134_keys-20231031.htm:81]**   
- Electronic Industrial Solutions Group (EISG): **$393 million** vs. $42 million in Q4 2023 (+836% YoY)  **[0001601046-24-000159_keys-20241031.htm:106]** **[0001601046-24-000159_keys-20241031.htm:86]** **[0001601046-24-000159_keys-20241031.htm:141]** **[0001601046-23-000134_keys-20231031.htm:81]**   
- Europe Revenue: **$23 million** vs. $227 million in Q4 2023 (-90% YoY)  **[0001601046-24-000159_keys-20241031.htm:106]** **[0001601046-23-000134_keys-20231031.htm:97]**   
- Operating Income: **$23 million** vs. $317 million in Q4 2023 (-93% YoY)  **[0001601046-24-000159_keys-20241031.htm:86]** **[0001601046-23-000134_keys-20231031.htm:81]**   
- Net Income: **-$73 million** vs. $226 million in Q4 2023 (-132% YoY)  **[0001601046-24-000159_keys-20241031.htm:86]** **[0001601046-23-000134_keys-20231031.htm:81]**   
- Diluted EPS: **-$0.41** vs. $1.28 in Q4 2023 (-132% YoY)  **[0001601046-24-000159_keys-20241031.htm:86]** **[0001601046-23-000134_keys-20231031.htm:81]**   
- Net Change in Cash: $165 million vs. -$1 million in Q4 2023 (+$166 million YoY)  **[0001601046-24-000159_keys-20241031.htm:88]** **[0001601046-23-000134_keys-20231031.htm:83]**   

f82ad3ef4641ef61d8afc21f64437a7b618911913a7e91adf38d6cff4fdd410d

003a9a0bbb4fe24d323f6ec3f1b4ecce707f39ad43a92ee50feab3a400067d39

| Year | Amount Due (in millions) | Debt Type        | Interest Rate | % of Total Debt |
|------|--------------------------|------------------|---------------|-----------------|
| 2027 | $700 **[0001601046-24-000159_keys-20241031.htm:66]**             | Senior Notes     | 4.60% **[0001601046-24-000159_keys-20241031.htm:66]** | 38.9% = (700 / 1800) * 100 **[0001601046-24-000159_keys-20241031.htm:66]** |
| 2029 | $500 **[0001601046-24-000159_keys-20241031.htm:66]**             | Senior Notes     | 3.00% **[0001601046-24-000159_keys-20241031.htm:125]** **[0001601046-24-000159_keys-20241031.htm:66]** | 27.8% = (500 / 1800) * 100 **[0001601046-24-000159_keys-20241031.htm:66]** |
| 2034 | $600 **[0001601046-24-000159_keys-20241031.htm:66]**             | Senior Notes     | 4.95% **[0001601046-24-000159_keys-20241031.htm:125]** **[0001601046-24-000159_keys-20241031.htm:66]** | 33.3% = (600 / 1800) * 100 **[0001601046-24-000159_keys-20241031.htm:66]** |

fc7bd58245813525ce395f6db53b98c855e8df67150f7ef5512c0a0756091d4a

91b7ab0de5ad535379bc10e1cb720f9bb1345fe4641807b88d57a6e28a874796

- **Weakness in the automotive sector**, with **orders and revenue declining double digits**, driven by lower auto manufacturing activity, political headwinds, and **Chinese battery commoditization pressures**, impacting Keysight's growth in this market.  **[KEYS_3399374_16]** ,  **[KEYS_3399374_4]**
- **Recovery across end markets is expected to be slow and gradual**, with the company **not factoring in an in-phase recovery**, indicating that growth rates **may remain below the long-term target of 5% to 7% in the near term**.  **[KEYS_3399374_6]**
- **Mixed environment in the semiconductor market**, especially on the **logic side**, where **customer spending remains constrained**, potentially impacting Keysight's semiconductor test business.  **[KEYS_3399374_15]**

642f1346c2f414dd5240b5531e4066db10b7c704e4432e48525ea5ea7df97019

- **Prolonged declines in certain business segments:** The Electronic Industrial Solutions Group (ISG) has experienced **four consecutive quarters of declines**, indicating ongoing weakness in key markets.  **[KEYS_3390030_7]**
- **Delays in achieving long-term revenue targets:** Management acknowledges that their longer-term revenue growth targets may be **pushed out due to declines in fiscal 2024**, with recovery dependent on uncertain market timing.  **[KEYS_3390030_15]**
- **Increased inventory levels and cash flow impacts:** The company has significantly **increased inventory** over the past couple of years due to supply chain issues, and **reducing inventory levels will be challenging without a market recovery**. Additionally, **free cash flows are impacted by restructuring and M&A integration costs**, posing short-term drains on cash flow conversion.  **[KEYS_3390030_16]** **[KEYS_3390030_11]**

781d2fe15f87d8bec13ed00e7260b610896e70ae76bac7438b65e6ba35888829

- **Strong growth in wireline business driven by AI demand:** For the first time in six quarters, Keysight's commercial communications orders grew, with the wireline business experiencing **strong double-digit growth** due to increased demand from AI data center applications.  **[KEYS_3390030_6]**  This indicates Keysight is benefiting from the rise of AI and is well-positioned to capitalize on this trend.
- **Strategic acquisitions enhancing growth opportunities:** The acquisition of Spirent Communications is expected to be **accretive to gross and operating margins post-integration** and expands Keysight's served addressable market in network analytics.  **[KEYS_3390030_11]**  Additionally, the ESI acquisition has **exceeded initial plans**, providing differentiated capabilities in simulation and emulation, and is poised to accelerate revenue growth.  **[KEYS_3390030_10]**
- **Confidence in long-term growth strategy and effective cost management:** Management remains confident in their **long-term growth expectations**, focusing on investing in R&D and increasing their software and services segment, which now accounts for **roughly 40%** of the company.  **[KEYS_3390030_15]**  They are also managing operating expenses effectively by reducing headcount and streamlining operations while maintaining R&D investments to position the company for future growth.  **[KEYS_3390030_8]**

e7bbf48975e2ef60af97d0d2e4dd1612ba45ff36f3329929a005271f71b93a78

- Keysight expects **lower operating margins in Q2**, anticipating a **600-700 basis points year-over-year decline** due to **unfavorable mix** and **higher operating expenses**, particularly in SG&A.  **[KEYS_3374054_23]**
- **Automotive manufacturing and supply chain spend are down**, with **unit volumes dropping for both conventional and EV demand**, impacting revenue from the automotive sector.  **[KEYS_3374054_12]**
- **Weakness in Asia continues**, affecting the **Electronic Industrial Solutions Group (EISG)** and parts of the **wireless business**, potentially hindering revenue growth in those regions.  **[KEYS_3374054_5]**

14ec957b9ce92529ce901c7e26a4a9e43b91012687acdd8dee7db83276d29f2e

- **Keysight is benefiting from significant _AI-driven investments_, particularly from _hyperscalers_, leading to _double-digit growth in commercial communications orders_. The wireline business, which represents _approximately 40% to 45% of commercial communications_, is _inflecting due to AI spend_.**  **[KEYS_3399374_18]** **[KEYS_3399374_5]**
- **The company is expanding in the _automotive sector_, especially in _autonomous vehicles_ and _software-defined vehicles_, leveraging its core competencies. The automotive business has _grown to nearly $500 million from a very small base_, indicating significant growth potential.**  **[KEYS_3399374_16]**
- **_Orders have stabilized and are showing slight growth_ after being down year-over-year for the prior six quarters, signaling potential for a cyclical recovery. Keysight's _long-term growth outlook remains intact_, expecting to return to its _5% to 7% revenue CAGR_. The company is making _strategic investments in innovation_ and customer engagement to maximize future growth.**  **[KEYS_3399374_4]** **[KEYS_3399374_6]**

87503688b25afdc863ff6b0fc96f9610bec6214cea10401a959cb129c2e4f77c

- **Delays in semiconductor fab construction are pushing revenues into late FY2024 and early FY2025**, as forward-looking demand has been postponed due to these delays, affecting backlog recognition  **[KEYS_3367735_24]** ,  **[KEYS_3367735_12]** ,.  **[KEYS_3367735_9]**
- **Sequential revenue decline in the Electronic Industrial Solutions Group (EISG) is expected to be larger than historical averages**, particularly impacting the upcoming quarter, with orders down more than historical averages  **[KEYS_3367735_15]** ,  **[KEYS_3367735_19]** ,.  **[KEYS_3367735_6]**
- **Demand normalization after outsized growth in fiscal 2021 and 2022 is leading to slowed growth in certain segments**, indicating that previous high growth rates may not continue  **[KEYS_3367735_16]** ,.  **[KEYS_3367735_6]**

289a82781064246829ab846986a0ec96593650ad21172651b969050b5b3d0031

1. **Order Growth Confidence**  
   **Q:** What gives confidence in second-half order growth?  
   **A:** Management expects modest order growth in the second half, driven by stabilizing demand and seasonal upticks, particularly in Q4 due to aerospace defense business and semiconductor spend. They see signs of stability with Wireline inflections and sequential growth in the ISG business. Their pipeline supports this expectation.  **[KEYS_3390030_7]** **[KEYS_3390030_12]** 

2. **Spirent Acquisition Rationale**  
   **Q:** Why acquire Spirent now?  
   **A:** The Spirent deal offers a strategic fit and SAM expansion opportunity, enhancing their portfolio in service assurance and network analytics. It's expected to create value for customers and shareholders, being accretive to gross and operating margins post-integration.  **[KEYS_3390030_11]** 

3. **Managing OpEx**  
   **Q:** How are you managing OpEx amid market volatility?  
   **A:** They expect total OpEx spending, excluding acquisitions, to be down about **3% year-over-year**, with savings coming from SG&A. They've reduced headcount by about **5%**, focusing on streamlining operations and maintaining R&D investments to position the business for future growth.  **[KEYS_3390030_8]** 

4. **EISG Segment Outlook**  
   **Q:** When will the semiconductor business improve?  
   **A:** The semiconductor business, about **10%** of total Keysight, is expected to show improvement towards the end of the calendar year as delayed fab expansions begin to see CapEx spending. Meanwhile, interconnect technologies present growth opportunities due to increasing data center demands, and Keysight's portfolio is well-positioned to capitalize on this.  **[KEYS_3390030_9]** 

5. **AI Data Center Opportunity**  
   **Q:** How does the AI data center opportunity compare to 5G?  
   **A:** It's still very early days for the AI opportunity. While difficult to compare to 5G, Keysight is engaging in collaborations across silicon, real-time training clusters, and interconnects. They see the ecosystem of customers expanding over time and are booking some business today.  **[KEYS_3390030_6]** **[KEYS_3390030_14]** 

6. **ESI Acquisition Performance**  
   **Q:** How is the ESI acquisition performing?  
   **A:** The ESI acquisition has exceeded initial plans, with strong culture fit and seamless teamwork. The focus is on revenue acceleration by leveraging Keysight's reach in aerospace defense and the Asian automotive market. Teams are working together, and progress is being made in the sales funnel.  **[KEYS_3390030_10]** 

7. **Free Cash Flow and Working Capital**  
   **Q:** What drove softness in operating cash flow?  
   **A:** Seasonal higher tax payments and timing of revenue affected collections, leading to softer cash flow this quarter. Increased inventory due to supply chain investments has also impacted working capital, but there's a path to reducing inventory over time, tied to market recovery.  **[KEYS_3390030_11]** 

8. **EISG Margins and Revenue**  
   **Q:** Will EISG margins improve in the back half?  
   **A:** Operating margins in EISG may remain range-bound due to revenue declines and the impact of ESI's seasonality. Even as orders improve, revenue may face headwinds because some business in EISG has a higher percentage of long-dated backlog items.  **[KEYS_3390030_14]** 

9. **Restructuring Costs**  
   **Q:** Did you take expanded restructuring actions?  
   **A:** No expanded actions were taken. The higher restructuring cost included a modest legal settlement within the quarter, which skewed the number higher.  **[KEYS_3390030_13]** 

10. **Long-Term Growth and M&A Strategy**  
    **Q:** How will you achieve long-term revenue targets?  
    **A:** Management remains confident in long-term growth expectations but acknowledges that timelines may push out due to the decline in '24. They focus on investing in R&D, increasing software and services (now **40%** of the company), and are selective in M&A, prioritizing organic growth.  **[KEYS_3390030_15]** 

60f4dc64820a60e09f3306a8efa7fa4b927689c5e6f93587fdbbd704a1dad015

- **Keysight remains confident in its long-term growth drivers**, with multiple overlapping waves of technology across wired and wireless ecosystems, enabling continued growth after demand normalization.  **[KEYS_3367735_16]**
- **Strong customer engagement in new technologies** like AI/ML, 5G, Open RAN, and non-terrestrial networks is contributing to sequential improvements in orders and positioning Keysight well for future growth.  **[KEYS_3367735_21]** **[KEYS_3367735_18]**
- **Increased investments in Aerospace and Defense technology** are driving a stronger uptick in that segment, which **bodes well for 2024**.  **[KEYS_3367735_21]**

f49103db76106fa4e51aeef06ec2fcd22297601255eecc1ed6b44d71230e077f

1. **Revenue Growth Outlook**  
   **Q:** Does the 5-7% revenue CAGR still hold for next fiscal year? Why not expect stronger growth?  
   **A:** Management maintains their long-term view of a **5–7% revenue CAGR**, expecting the business to trend back to those levels. However, after outsized years in '21 and '22 and a down market in '24, they anticipate a **slow gradual recovery in 2025** rather than stronger growth. They are monitoring funnel dynamics before forecasting higher rates.  **[KEYS_3399374_6]** 

2. **AI Impact on Revenue**  
   **Q:** How much of commercial communications orders are tied to AI, and how impactful will AI be over the next 12 months?  
   **A:** Commercial communications orders grew **double digits** this quarter, with the wireline ecosystem—about **40–45%** of the business—inflecting due to AI spend. While AI is transformational, it's currently driven by hyperscalers and is highly concentrated. Management believes the ecosystem will broaden over time but it's too early to quantify the full revenue impact.  **[KEYS_3399374_5]** 

3. **Catalysts & Spirent Acquisition**  
   **Q:** What are catalysts for improvement in communications in fiscal '25? Any update on Spirent acquisition?  
   **A:** Demand in the wireline business is strong, driven by AI investments, providing a pipeline for the next **3–5 years**. Stability in wireless and increased global deployment activity are expected. Continued R&D investments may offset moderating manufacturing investments later next year. The **Spirent acquisition** has received shareholder approval and is expected to complete in the **first half of fiscal '25**.  **[KEYS_3399374_11]** 

4. **Tax Rate Guidance**  
   **Q:** Is a 14% tax rate a good baseline assumption for next fiscal year?  
   **A:** Yes, management expects the **14% tax rate** to hold for multiple years, at least through **2027**. They are aware of potential changes like the U.S. GILTI tax rate increase in 2027 and possible tax legislation changes but currently assume status quo.  **[KEYS_3399374_10]** 

5. **Cyclical Environment Change**  
   **Q:** How meaningful is the pickup in orders? Is the cyclical environment changing?  
   **A:** Management is encouraged by stability in the base business, inflections in wireline, and signs of rebound in semiconductors, despite some weakness in automotive. While they see a return to slight year-over-year growth, it's **too soon to call a recovery** at this time.  **[KEYS_3399374_4]** 

6. **Automotive Project Delays**  
   **Q:** Are automotive clients looking to restart delayed projects in early 2025?  
   **A:** Timing is hard to predict, but there's a continuous focus on innovation with automotive customers. Management expects the pause in battery test and EV projects to **gain momentum in the next several quarters**, with capacities increasing and commitments to e-mobility driving growth.  **[KEYS_3399374_9]** 

7. **Semiconductor Outlook**  
   **Q:** Update on semiconductor fabrication delays and outlook?  
   **A:** Project activities are returning with sequential growth and a solid pipeline, especially in memory and silicon photonics. **AI is driving urgency** in these areas. The logic side remains mixed, but management feels positive about sequential recovery.  **[KEYS_3399374_15]** 

8. **First Quarter Seasonality**  
   **Q:** Will Q1 fiscal '25 differ from typical seasonality?  
   **A:** Historically, Q1 sees a **mid-single-digit sequential decrease** in orders and revenue. However, the ESI business, recognizing **40–45%** of its revenues in Q1, may offset this trend. Management anticipates a moderate recovery into '25 but it's too early for detailed guidance.  **[KEYS_3399374_12]** 

9. **Backlog and Orders Update**  
   **Q:** Any updates on longer-dated backlog build or orders?  
   **A:** Incoming order rates remain stable in the **upper single digits**. Revenue is trending similarly, and management expects to reach this level in the next quarter or two.  **[KEYS_3399374_7]** 

10. **Autonomous Vehicles Opportunity**  
    **Q:** How does the autonomous vehicle market leverage your core competencies?  
    **A:** Keysight has grown its automotive business to nearly **$500 million** from a small base. Two-thirds focus on new mobility EV and AV. Autonomous vehicles leverage strengths in semiconductors, communications, and cybersecurity tools across areas where Keysight holds leadership positions, presenting significant long-term opportunities.  **[KEYS_3399374_16]** 

11. **Demand Trends**  
    **Q:** Any material changes in demand trends recently?  
    **A:** The quarter showed typical seasonality with month-to-month ramping. Positive funnel dynamics are evident, with increased intake and faster deal closures. Management notes ongoing improvements without unusual fluctuations.  **[KEYS_3399374_17]** 

12. **Wireless Infrastructure Outlook**  
    **Q:** Is anything in wireless infrastructure aiding technology upgrades?  
    **A:** There's continued progression in standards (Release 17–19) and themes like **AI in RAN** and scaling of **Open RAN** labs. Early activities around **6G** are picking up. Management expects **5G stability** due to global deployments, providing continuity until 6G arrives.  **[KEYS_3399374_13]** 

13. **Q4 Revenue Growth**  
    **Q:** Is Q4 revenue growth weighted more towards communications? Will both segments be up?  
    **A:** The seasonal uptick is expected in both businesses but will skew towards communications due to pressures in manufacturing and automotive. Additionally, a seasonal increase is anticipated in the Aerospace and Defense segment.  **[KEYS_3399374_14]** 

14. **Aerospace & Defense Delays**  
    **Q:** Are delays in Aerospace and ADG segment pushing into next quarter or is this a slowdown?  
    **A:** Positive trends due to geopolitics are noted, with bipartisan support for defense budgets. Revenue levels are down from record **2023** levels, but large system wins will convert to revenue next year. Management feels confident about future order conversions.  **[KEYS_3399374_8]** 

15. **Expanding Hyperscaler Exposure**  
    **Q:** How might exposure to hyperscalers broaden over time?  
    **A:** Hyperscaler investments in digital infrastructure upgrades benefit Keysight through manufacturing exposure. As hyperscalers develop silicon programs, Keysight is increasing its involvement. Participation in open standardization consortiums led by hyperscalers allows contributions in computation, connectivity, and AI scaling solutions.  **[KEYS_3399374_18]** 

e9b77945329daa96fe569c5b9832d46b870bb8496b29029947c4cd5377c769a7

1. **AI Driving Wireline Growth**  
   **Q:** How is AI impacting your wireline business growth?  
   **A:** Our wireline business has gained momentum this year driven by AI, exceeding over **$1 billion in orders** and growing at **double-digit rates**.  **[KEYS_3409395_6]**  We serve a broad set of customers, including silicon designers and hyperscalers investing in large infrastructure upgrades.  **[KEYS_3409395_6]**  We're excited about opportunities not just in the physical layer but also in the protocol layer, enabling customers to emulate how traffic flows through AI infrastructure.  **[KEYS_3409395_6]** 

2. **Software and Services Margin Impact**  
   **Q:** How will increasing software and services revenues affect gross margins?  
   **A:** We're seeing a nice shift towards software and services, now up to **39% of revenues**.  **[KEYS_3409395_6]**  Software is accretive to our average gross margin, while services are slightly dilutive.  **[KEYS_3409395_6]**  Overall, both contribute nicely to profitability at the operating margin line.  **[KEYS_3409395_6]** 

3. **Semi Cap and Electronics Outlook**  
   **Q:** What are your expectations for semiconductor and electronics recovery?  
   **A:** For semiconductor fabs, opportunities in wafer test solutions around silicon photonics and new memory topologies continue positively.  **[KEYS_3409395_12]**  This is somewhat offset by slowdowns reported by equipment manufacturers.  **[KEYS_3409395_12]**  Semiconductors represent roughly **10%** of our total revenue.  **[KEYS_3409395_12]**  In general electronics, we saw stability in manufacturing in Q4, leading to growth.  **[KEYS_3409395_12]**  We believe this stability will continue moving forward.  **[KEYS_3409395_12]** 

4. **Automotive Segment Weakness**  
   **Q:** Can other auto exposures drive growth despite EV slowdown?  
   **A:** While we're seeing a pause in EV investments, other areas remain promising.  **[KEYS_3409395_14]**  The software-defined vehicles, ADAS, and autonomy sectors are steady, with continued innovation across our business.  **[KEYS_3409395_14]**  Additionally, the charging infrastructure and related standards offer new opportunities we're pursuing.  **[KEYS_3409395_14]** 

5. **Operating Margin Targets and Acquisitions**  
   **Q:** How are acquisitions affecting your operating margin targets?  
   **A:** We're currently **150–200 basis points** below our operating margin targets of **31%–32%**.  **[KEYS_3409395_12]**  Acquisitions are accretive to gross margins but dilutive to operating margins in the short run.  **[KEYS_3409395_12]**  As we integrate these businesses, we'll drive profit leverage to close that gap.  **[KEYS_3409395_12]** 

6. **2025 Revenue Growth Expectations**  
   **Q:** Will all major segments grow within your mid-single-digit outlook?  
   **A:** We expect a gradual recovery into 2025 but aren't assuming all segments will inflect.  **[KEYS_3409395_9]**  Our base case is **5% revenue growth** and **10% EPS growth** for the year.  **[KEYS_3409395_9]**  If all segments grow, we'll be ready to capitalize on it.  **[KEYS_3409395_9]** 

7. **Aerospace and Defense Outlook**  
   **Q:** Any concerns in aerospace and defense amid federal spending changes?  
   **A:** The long-term trajectory is easiest to forecast due to budget clarity.  **[KEYS_3409395_5]**  Orders were slightly down year-over-year but were off a record comparison from a year ago.  **[KEYS_3409395_5]**  Despite short-term uncertainties with administrative changes, we feel good about our position.  **[KEYS_3409395_5]** 

8. **Wireless Business Stabilization**  
   **Q:** Has your view of wireless business growth evolved?  
   **A:** After two quarters of stabilization, we're seeing more strength on the infrastructure side with activity around Open RAN and 6G research.  **[KEYS_3409395_4]**  The devices side is lagging slightly.  **[KEYS_3409395_4]**  We believe the business will remain stable in '25 and feel good about our ongoing momentum.  **[KEYS_3409395_4]** 

9. **Impact of Tariffs and Elections**  
   **Q:** How might tariffs and U.S. elections affect your business?  
   **A:** We're monitoring tax rates, tariffs, trade restrictions, and defense spending.  **[KEYS_3409395_7]**  We've been agile in ensuring compliance with new restrictions, pivoting sales as needed.  **[KEYS_3409395_7]**  If tariffs increase, many companies may move to Southeast Asia, and we're prepared to capitalize on those opportunities.  **[KEYS_3409395_7]** 

10. **M&A and Capital Allocation**  
    **Q:** Will you pursue more large transactions with the Spirent deal ongoing?  
    **A:** We have a strong organic growth strategy and have identified markets for selective M&A.  **[KEYS_3409395_17]**  While we continue to evaluate targets and remain disciplined, it's more about bandwidth than capital to pursue more deals given those already announced.  **[KEYS_3409395_17]** 

11. **Buybacks in Fiscal '25**  
    **Q:** How should we think about buybacks for fiscal '25?  
    **A:** We expect to continue our buyback program at least at the anti-dilutive level.  **[KEYS_3409395_18]**  We'll balance preparing cash for the Spirent transaction with opportunistic buybacks.  **[KEYS_3409395_18]** 

f37d6a27b50c0e8a7849ac93b8786b5dab60d0f596bddb95152ec3a147a6e242

1. **Second Half Recovery Expectations**  
   **Q:** What's driving expectation for recovery in 2H? Any end-market specifics?  
   **A:** Management stated that their base case does not include a meaningful second-half recovery  **[KEYS_3374054_5]** **[KEYS_3374054_6]** . They anticipate modestly higher orders and revenue due to seasonal uptick, particularly into **Q4**, which is typically stronger.  **[KEYS_3374054_5]**  Market conditions remain largely unchanged, with no specific customer or end-market factors driving a recovery.  **[KEYS_3374054_6]**  They are prepared to capitalize if a broader recovery occurs.  **[KEYS_3374054_6]** 

2. **Impact of AI on Wireline Business**  
   **Q:** How much revenue is benefiting from AI, and outlook?  
   **A:** AI is an emerging opportunity, with significant impact seen this quarter as parts of the wireline business inflect.  **[KEYS_3374054_7]**  Growth is driven by **400G and 800G transceiver** manufacturing scaling up and increased focus on terabit research.  **[KEYS_3374054_7]**  Collaborations with companies like **Marvell** and **NVIDIA** are helping address AI-related opportunities.  **[KEYS_3374054_7]**  While not fully reflected in forecasts yet, they are investing to capitalize on AI-driven demand.  **[KEYS_3374054_7]** 

3. **Margin Targets and Revenue Growth**  
   **Q:** What revenue is needed to reach EBIT margin target by FY'26?  
   **A:** It's premature to specify, but returning to growth is the main driver.  **[KEYS_3374054_8]**  Despite declining revenues, strong gross margins are maintained due to software and services content.  **[KEYS_3374054_8]**  Management believes they can get back to their growth model by leveraging trends in wireless, wireline, next-gen silicon, aerospace defense, and semiconductors.  **[KEYS_3374054_8]** 

4. **Areas of Weakness and China Challenges**  
   **Q:** Are there places where demand is worsening?  
   **A:** Asia, particularly **China**, remains challenging, affecting EISG and wireless businesses  **[KEYS_3374054_6]** **[KEYS_3374054_10]** . Manufacturing is also challenging, and wireless customers are working through issues.  **[KEYS_3374054_10]**  Despite headwinds, there are positive indicators in China, such as growth in **400G and 800G R&D** for data center upgrades and demand for **5G private networks**.  **[KEYS_3374054_10]** 

5. **Backlog and Revenue Timing**  
   **Q:** When will excess backlog convert to revenue?  
   **A:** The company believes they've worked through the excess backlog.  **[KEYS_3374054_11]**  Longer-dated orders, which have increased to about **8%** of incoming orders, are starting to contribute to revenue.  **[KEYS_3374054_11]**  By **Q4**, revenue from these longer-dated programs is expected to be about **8%** of total revenue.  **[KEYS_3374054_11]** 

6. **Operating Margins and Cost Actions**  
   **Q:** Is margin decline in Q2 expected, or is something impacting it?  
   **A:** The margin decline aligns with their downside model, which anticipates **300–400 basis points** of operating margin decline for a **10%** revenue drop.  **[KEYS_3374054_12]**  They've taken significant cost actions and expect total OpEx to be down about **3%**, primarily through SG&A reductions while maintaining R&D investment.  **[KEYS_3374054_12]** 

7. **Wireless Business Outlook and Technologies**  
   **Q:** How are wireless technologies influencing the business?  
   **A:** The business is normalizing after peak demand in '21–'22.  **[KEYS_3374054_13]**  Customers are upgrading release libraries (e.g., Release **15/16 to 17**), with future roadmap including Releases **18–20** leading toward **6G**.  **[KEYS_3374054_13]**  Integration of satellite communications and new device form factors are opening new opportunities.  **[KEYS_3374054_13]**  Management is confident of returning to growth even prior to 6G.  **[KEYS_3374054_13]** 

8. **ESI Business Opportunities**  
   **Q:** Any changes you can make to ESI business earlier than expected?  
   **A:** Management is positive about growing ESI within Keysight, leveraging their technology and simulation capabilities.  **[KEYS_3374054_9]**  ESI's **hybrid AI** capability is unique and will be leveraged across the company.  **[KEYS_3374054_9]**  They saw a strong start in the first quarter for ESI.  **[KEYS_3374054_9]** 

9. **Longer-Dated Backlog and Revenue Impact**  
   **Q:** Update on longer-dated backlog? Impact on revenue?  
   **A:** Longer-dated backlog is around **$400–$500 million**, consisting of large, lumpy deals in aerospace, defense, auto, and semi sectors.  **[KEYS_3374054_15]**  These are starting to flow into revenue, expected to be about **8%** of revenue by year-end.  **[KEYS_3374054_15]** 

10. **Q2 Guidance and Wireless Expectations**  
    **Q:** Any sequential improvement in Q2? Wireless outlook?  
    **A:** No significant sequential improvements anticipated in Q2; modest pressure is expected across the board.  **[KEYS_3374054_17]**  In wireless, they expect stability and moderation as it normalizes over the next few quarters.  **[KEYS_3374054_17]**  Aerospace defense and wireline continue to provide growth opportunities.  **[KEYS_3374054_17]** 

11. **Optical Wireline R&D and Software**  
    **Q:** Outlook beyond 400G/800G? Update on software businesses?  
    **A:** Engaged in current deployments of **100G and 400G**, with roadmap scaling to **1.6 terabits** and beyond.  **[KEYS_3374054_14]**  The Ixia software business is stable due to higher services and software content.  **[KEYS_3374054_14]**  They're adapting traffic generation capabilities to address emerging AI use cases.  **[KEYS_3374054_14]** 

12. **Positioning in AI Networking**  
    **Q:** Is Keysight focused on Ethernet over InfiniBand for AI networking?  
    **A:** Keysight doesn't pick winners among technologies; multiple standards like **CXL** and **PCIe Gen 7** are emerging.  **[KEYS_3374054_16]**  They service various technologies through their platforms, often using the same underlying platforms.  **[KEYS_3374054_16]**  Software and services represent about **40%** of total order revenue, with ARR up double digits.  **[KEYS_3374054_16]** 

13. **Organic Revenue Change Sequentially**  
    **Q:** Is organic revenue decline sequentially only 1–2%?  
    **A:** ESI revenue was **$67–68 million** in Q1, and the core business revenue decline from Q1 to Q2 is just over **1%**.  **[KEYS_3374054_18]** 

14. **ESI Contribution and Comparison Challenges**  
    **Q:** Is ESI making comparisons difficult?  
    **A:** Yes, ESI performed **10% or more above** expectations in Q1.  **[KEYS_3374054_19]**  The expected sequential decline in ESI due to renewal schedules makes comparisons more challenging when analyzing the combined entity.  **[KEYS_3374054_19]** 

15. **Overall Expectations and Pipeline**  
    **Q:** How have expectations changed vs. 90 days ago?  
    **A:** Expectations haven't significantly changed; market conditions remain largely unchanged.  **[KEYS_3374054_9]**  The pipeline supports the base case of modestly higher orders and revenue in the second half.  **[KEYS_3374054_9]** 

---

**Indexes Used:**
 **[KEYS_3374054_5]** ,  **[KEYS_3374054_6]** ,  **[KEYS_3374054_7]** ,  **[KEYS_3374054_8]** ,  **[KEYS_3374054_9]** ,  **[KEYS_3374054_10]** ,  **[KEYS_3374054_11]** ,  **[KEYS_3374054_12]** ,  **[KEYS_3374054_13]** ,  **[KEYS_3374054_14]** ,  **[KEYS_3374054_15]** ,  **[KEYS_3374054_16]** ,  **[KEYS_3374054_17]** ,  **[KEYS_3374054_18]** ,  **[KEYS_3374054_19]** 

bfacee85cb3cead231b8e6dda5c56edd1b7b071d9a2475fc13fd8881b632061e

- **Growing demand in aerospace, defense, and government sectors:** Keysight anticipates growth in these areas due to increased investments in defense modernization, space, and satellite applications, with bipartisan support for defense budgets in the U.S. and elevated spending in Europe and other countries facing geopolitical situations.  **[KEYS_3374054_17]**
- **Positive signs in the order pipeline indicating potential recovery:** The company is observing improvements in its six-month order funnel, with modest increases in funnel intake and faster funnel velocity as customers begin to move more quickly, suggesting potential for higher orders and revenue in the second half of the year.  **[KEYS_3374054_9]**
- **Robust software and services business contributing to resilience:** Software and services represent roughly **40% of total order revenue**, with annual recurring revenue up double digits, demonstrating strong performance and contributing to favorable gross margins even in challenging market conditions.  **[KEYS_3374054_16]**

9483d85dd22a9a148be5b35b60fbd6f4d30ecd2e7eef1d723cb49b88b85bc656

Keysight Technologies Inc (KEYS)

Financials