Revenue growth surged to 31.5% in 2026Q2, while gross margins expanded to 68.6%, indicating a successful shift toward higher-margin software and services.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 |
|---|
| Sales/Revenue | 6.09B | 5.38B | 4.98B | 5.46B | 5.42B | 4.94B | 4.22B | 4.3B | 3.88B | 3.19B | 2.92B | 2.86B | 2.93B | 2.89B | 3.31B |
| Revenue Growth % | 19.19% | 7.95% | -8.88% | 0.81% | 9.69% | 17.06% | -1.91% | 10.96% | 21.61% | 9.29% | 2.17% | -2.63% | 1.56% | -12.88% | - |
| Cost of Goods Sold | 2.21B | 2.04B | 1.85B | 1.93B | 1.97B | 1.87B | 1.69B | 1.77B | 1.77B | 1.49B | 1.29B | 1.27B | 1.31B | 1.26B | 1.43B |
| COGS % of Revenue | - | 37.92% | 37.08% | 35.36% | 36.35% | 37.89% | 39.99% | 41.11% | 45.56% | 46.79% | 44.35% | 44.43% | 44.77% | 43.8% | 43.26% |
| Gross Profit | 3.88B | 3.34B | 3.13B | 3.53B | 3.45B | 3.07B | 2.53B | 2.53B | 2.11B | 1.7B | 1.62B | 1.59B | 1.62B | 1.62B | 1.88B |
| Gross Margin % | 63.67% | 62.08% | 62.92% | 64.64% | 63.65% | 62.11% | 60.01% | 58.89% | 54.44% | 53.21% | 55.65% | 55.57% | 55.23% | 56.2% | 56.74% |
| Gross Profit Growth % | - | 6.51% | -11.3% | 2.38% | 12.41% | 21.16% | -0.04% | 20.04% | 24.4% | 4.5% | 2.33% | -2.04% | -0.18% | -13.72% | - |
| Operating Expenses | 2.77B | 2.39B | 2.3B | 2.17B | 2.12B | 1.99B | 1.77B | 1.82B | 2.5B | 1.55B | 1.22B | 1.16B | 1.15B | 1.13B | 1.15B |
| OpEx % of Revenue | - | 44.48% | 46.19% | 39.79% | 39.04% | 40.26% | 41.89% | 42.37% | 64.6% | 48.57% | 41.74% | 40.48% | 39.24% | 39.02% | 34.63% |
| Selling, General & Admin | 1.66B | 1.4B | 1.4B | 1.31B | 1.28B | 1.2B | 1.1B | 1.16B | 1.21B | 1.05B | 818M | 787M | 790M | 752M | 771M |
| SG&A % of Revenue | - | 26.05% | 28.02% | 23.92% | 23.67% | 24.19% | 25.99% | 26.84% | 31.07% | 32.89% | 28.03% | 27.56% | 26.93% | 26.04% | 23.26% |
| Research & Development | 1.13B | 1.01B | 919M | 882M | 841M | 811M | 715M | 688M | 624M | 507M | 425M | 387M | 361M | 375M | 377M |
| R&D % of Revenue | - | 18.73% | 18.46% | 16.14% | 15.52% | 16.41% | 16.94% | 15.99% | 16.09% | 15.9% | 14.56% | 13.55% | 12.31% | 12.98% | 11.37% |
| Other Operating Expenses | -4M | -16M | -14M | -15M | -8M | -17M | -44M | -20M | 676M | -7M | -25M | -18M | 0 | 0 | 0 |
| Operating Income | 1.11B | 948M | 833M | 1.36B | 1.33B | 1.08B | 765M | 711M | -394M | 148M | 406M | 431M | 469M | 496M | 733M |
| Operating Margin % | 18.17% | 17.64% | 16.73% | 24.85% | 24.61% | 21.86% | 18.12% | 16.52% | -10.16% | 4.64% | 13.91% | 15.09% | 15.99% | 17.17% | 22.11% |
| Operating Income Growth % | - | 13.81% | -38.66% | 1.8% | 23.52% | 41.18% | 7.59% | 280.46% | -366.22% | -63.55% | -5.8% | -8.1% | -5.44% | -32.33% | - |
| EBITDA | 1.31B | 1.22B | 1.1B | 1.57B | 1.56B | 1.37B | 1.09B | 1.02B | -84M | 373M | 540M | 530M | 553M | 573M | 798M |
| EBITDA Margin % | 21.52% | 22.75% | 22.15% | 28.73% | 28.73% | 27.79% | 25.85% | 23.68% | -2.17% | 11.7% | 18.51% | 18.56% | 18.85% | 19.84% | 24.07% |
| EBITDA Growth % | 16.34% | 10.88% | -29.75% | 0.83% | 13.4% | 25.85% | 7.07% | 1313.1% | -122.52% | -30.93% | 1.89% | -4.16% | -3.49% | -28.2% | - |
| D&A (Non-Cash Add-back) | 204M | 275M | 270M | 212M | 223M | 293M | 326M | 308M | 310M | 225M | 134M | 99M | 84M | 77M | 65M |
| EBIT | 1.24B | 1.15B | 949M | 1.44B | 1.36B | 1.09B | 839M | 795M | -328M | 259M | 413M | 434M | 478M | 501M | 746M |
| Net Interest Income | -14M | 6M | -3M | 24M | -63M | -76M | -67M | -57M | -71M | -73M | -44M | -45M | -3M | 0 | 0 |
| Interest Income | 96M | 102M | 81M | 102M | 16M | 3M | 11M | 23M | 12M | 7M | 3M | 1M | 0 | 0 | 0 |
| Interest Expense | 110M | 96M | 84M | 78M | 79M | 79M | 78M | 80M | 83M | 80M | 47M | 46M | 3M | 0 | 0 |
| Other Income/Expense | 73M | 134M | 32M | -1M | -49M | -70M | -4M | 4M | -17M | 31M | -40M | -43M | 6M | 5M | 13M |
| Pretax Income | 1.18B | 1.08B | 865M | 1.36B | 1.28B | 1.01B | 761M | 715M | -411M | 179M | 366M | 388M | 475M | 501M | 746M |
| Pretax Margin % | 19.37% | 20.13% | 17.37% | 24.84% | 23.71% | 20.44% | 18.03% | 16.62% | -10.6% | 5.61% | 12.54% | 13.59% | 16.2% | 17.35% | 22.5% |
| Income Tax | 106M | 213M | 251M | 300M | 161M | 116M | 134M | 94M | -576M | 77M | 31M | -125M | 83M | 44M | -95M |
| Effective Tax Rate % | 8.99% | 19.69% | 29.02% | 22.11% | 12.53% | 11.49% | 17.61% | 13.15% | 140.15% | 43.02% | 8.47% | -32.22% | 17.47% | 8.78% | -12.73% |
| Net Income | 1.05B | 846M | 614M | 1.06B | 1.12B | 894M | 627M | 621M | 165M | 102M | 335M | 513M | 392M | 457M | 841M |
| Net Margin % | 17.25% | 15.74% | 12.33% | 19.34% | 20.74% | 18.09% | 14.85% | 14.43% | 4.25% | 3.2% | 11.48% | 17.96% | 13.37% | 15.82% | 25.37% |
| Net Income Growth % | 41.51% | 37.79% | -41.91% | -5.96% | 25.73% | 42.58% | 0.97% | 276.36% | 61.76% | -69.55% | -34.7% | 30.87% | -14.22% | -45.66% | - |
| Net Income (Continuing) | 1.07B | 869M | 614M | 1.06B | 1.12B | 894M | 627M | 621M | 165M | 102M | 335M | 513M | 392M | 457M | 841M |
| Discontinued Operations | -1000K | -23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.07 | 4.88 | 3.51 | 5.91 | 6.18 | 4.78 | 3.32 | 3.25 | 0.86 | 0.56 | 1.95 | 3.00 | 2.35 | 2.74 | 5.04 |
| EPS Growth % | 42.49% | 39.03% | -40.61% | -4.37% | 29.29% | 43.98% | 2.15% | 277.91% | 53.57% | -71.28% | -35% | 27.66% | -14.23% | -45.63% | - |
| EPS (Basic) | - | 4.90 | 3.53 | 5.94 | 6.24 | 4.83 | 3.35 | 3.30 | 0.88 | 0.57 | 1.97 | 3.04 | 2.35 | 2.74 | 5.04 |
| Diluted Shares Outstanding | 173M | 173M | 175M | 179M | 182M | 187M | 189M | 191M | 191M | 182M | 172M | 171M | 167M | 166.82M | 166.82M |
| Basic Shares Outstanding | 173M | 173M | 174M | 178M | 180M | 185M | 187M | 188M | 187M | 180M | 170M | 169M | 167M | 166.82M | 166.82M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical Export Control Exposure
As indicated by the most recent quarterly data, Keysight's revenue growth has surged to 31.5% in 2026Q2, marking a significant departure from the mid-single-digit growth observed in early 2025 and suggesting a successful capture of new demand cycles in high-frequency testing and data center infrastructure.
The acceleration in top-line performance appears to be driven by a shift toward next-generation connectivity standards, specifically 800G and 1.6T Ethernet testing. This trajectory suggests that the company's strategic pivot toward software-integrated solutions is effectively insulating it from the cyclical volatility typically associated with legacy hardware manufacturing.
According to reported financial statements, Keysight achieved a gross margin of 68.6% in 2026Q2, representing a notable expansion from the 61-63% range maintained throughout 2024 and 2025, which implies increasing pricing power and a favorable shift in the product mix toward higher-margin software and services.
The expansion in gross margins suggests that the company is successfully leveraging its proprietary intellectual property to command premium pricing. Investors should monitor whether this margin profile is sustainable or if it reflects a temporary benefit from specific high-value project completions that may not recur in subsequent quarters.
Based on the income statement figures, operating income reached $407 million in 2026Q2, demonstrating significant operating leverage as the company scaled its operating margin to 23.7% compared to the 15-17% range observed during the previous fiscal year, indicating efficient management of fixed overhead costs.
The ability to expand operating margins while maintaining consistent R&D investment suggests that the company is successfully scaling its software-centric business model. This trend warrants further investigation to determine if the current SG&A efficiency is a permanent structural improvement or a result of temporary cost-containment measures.
As reported in recent filings, Keysight's net income reached $349 million in 2026Q2, with EPS of $2.02, reflecting a high-quality earnings profile that appears less reliant on non-operating items compared to the volatility seen in 2024Q4 when net income was impacted by significant non-recurring charges.
The stabilization of net income suggests that the company has moved past the period of significant accounting noise that previously obscured underlying operational performance. However, the variability in stock-based compensation warrants continued scrutiny to ensure that management's long-term incentive structures remain aligned with shareholder value creation.
Quick answers to the most common questions about buying KEYS stock.
For fiscal year 2025, Keysight Technologies, Inc. (KEYS) reported total revenue of $5.38B. This represents a 62.1% increase compared to $3.31B in 2012.
Keysight Technologies, Inc. (KEYS) is profitable, generating $846.0M in net income for the fiscal year ending 2025 with a net profit margin of 15.7%.
Keysight Technologies, Inc. (KEYS) reported an operating income of $948.0M, resulting in an operating profit margin of 17.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Keysight Technologies, Inc. (KEYS) generated $3.34B in gross profit for the year, representing a gross profit margin of 62.1%. This demonstrates the company's core pricing power and production efficiency.