Keysight Technologies, Inc. (NYSE: KEYS) reported strong first-quarter fiscal 2025 results, with revenue and orders exceeding expectations. Revenue reached $1.30 billion, a 3% increase from $1.26 billion in Q1 2024. GAAP net income was $169 million, slightly down from $172 million in the prior-year quarter, while non-GAAP net income rose 11% to $317 million, or $1.82 per share, compared to $286 million and $1.63 per share in Q1 2024.

The Communications Solutions Group (CSG) posted $883 million in revenue, growing 5% year-over-year, with equal contributions from commercial communications and aerospace, defense, and government sectors. The Electronic Industrial Solutions Group (EISG) saw a 1% decline in revenue to $415 million, reflecting mixed demand across end markets.

Keysight’s free cash flow improved to $346 million, up from $281 million last year, supported by $378 million in operating cash flow. The company held $2.06 billion in cash and cash equivalents as of January 31, 2025.

For Q2 2025, Keysight expects revenue between $1.27 billion and $1.29 billion, with non-GAAP EPS between $1.61 and $1.67. CEO Satish Dhanasekaran expressed confidence in the company's innovation pipeline and long-term growth prospects as market demand continues its gradual recovery in 2025.