Keysight
Keysight Technologies, Inc. is an American technology company headquartered in Santa Rosa, California, that develops and delivers software-centric electronic design, emulation, and test solutions to accelerate innovation across industries including communications, aerospace, automotive, energy, and semiconductors.[1][2] The company maintains market leadership through a comprehensive portfolio of hardware instruments—such as oscilloscopes, spectrum analyzers, signal generators, and network test equipment—complemented by advanced software for simulation, validation, and security assessment.[3][4] Keysight's lineage traces to the Hewlett-Packard Company, founded in 1939 by William Hewlett and David Packard in a Palo Alto garage, where early innovations like the HP 200A audio oscillator laid the foundation for modern test and measurement technology.[5] Following HP's restructuring, the electronic instruments division became Agilent Technologies in 1999, from which Keysight was spun off as an independent entity in November 2014 to focus exclusively on design and test solutions amid growing demand for high-speed networks and complex systems.[5][6] This separation enabled Keysight to prioritize engineering-centric tools, distinguishing it from broader life sciences and chemical analysis pursuits retained by Agilent.[7] With operations spanning over 100 countries and a workforce exceeding 15,000, Keysight supports critical advancements in 5G/6G wireless, AI-driven data centers, electric vehicles, and defense applications, often collaborating with enterprises to co-develop bespoke validation platforms that mitigate risks in product deployment.[1][4] The firm's emphasis on precision measurement and emulation has positioned it as a key enabler for secure connectivity and sustainable technologies, evidenced by its role in standards development for bodies like 3GPP and IEEE.[8][9]Overview
Business Model and Market Position
Keysight Technologies operates a diversified business model focused on providing electronic design, emulation, test, and measurement solutions to accelerate innovation across industries. The company generates revenue primarily through hardware sales, including oscilloscopes, signal analyzers, network test equipment, and parametric analyzers, which form the largest segment, alongside software licenses, subscriptions, and professional services such as calibration, maintenance, and consulting.[2][10] This structure leverages a single technology investment across multiple instrument form factors and delivery modes, enabling multiple revenue streams from core R&D outputs.[10] Recurring revenue from software and services has grown significantly, reaching over $1 billion annually by 2025 and comprising approximately 25% of total revenue, driven by demand for simulation tools, data analytics, and as-a-service models in areas like AI validation and network emulation.[11][2] In fiscal year 2024, Keysight reported total revenue of $4.98 billion, reflecting a decline from $5.46 billion in the prior year amid market headwinds, though the company anticipated 7% revenue growth for fiscal 2025, fueled by AI-related demand in wireline testing and communications infrastructure.[12][13] The model emphasizes heavy investment in R&D—approximately 15-18% of revenue annually—and global sales expansion to serve over 40,000 customers, with a focus on high-margin segments like software to mitigate cyclicality in hardware sales.[2][14] Keysight maintains a leading market position in the electronic test and measurement industry, operating within a total addressable market valued at around $20.9 billion as of recent estimates, characterized by long-term growth drivers such as 5G/6G deployments, AI infrastructure, electric vehicles, and semiconductor advancements.[2] The company derives roughly two-thirds of its revenue from communications solutions, including network validation and device testing, while the remaining from electronic industrial applications in aerospace, defense, automotive, and general electronics, providing diversification against sector-specific downturns.[2] With over 3,800 patents and a history of industry-first innovations, Keysight competes effectively against rivals like Rohde & Schwarz and Anritsu, holding strong shares in high-frequency signal analysis and modular instrumentation, bolstered by its S&P 500 status and global footprint spanning more than 100 countries.[15][16] In third-quarter 2025, revenue reached $1.35 billion, up 10.7% year-over-year, underscoring resilience and positioning in recovering demand for AI and wireline technologies.[17]Leadership and Operations
Satish Dhanasekaran serves as president and chief executive officer of Keysight Technologies, having assumed the role on May 1, 2022, succeeding Ron Nersesian.[18] Nersesian, who led the company as CEO from its 2014 spin-off until 2022, transitioned to executive chairman before becoming non-executive board chair.[18] The executive leadership team includes Neil Dougherty as chief financial officer, responsible for financial strategy and operations; Gooi Soon Chai overseeing enterprise services; and Niels Faché managing the design engineering software portfolio.[19] Recent transitions include the appointment of Ingrid Estrada as senior vice president and chief supply chain and operations officer on May 27, 2025, focusing on global supply chain management and operational efficiency.[20] Jodi Juskie was named senior vice president and chief people officer on the same date, succeeding Estrada in human resources leadership.[20] In November 2024, Steve Yoon was elevated to senior vice president of global sales, replacing retiring executive Mark Wallace.[21] Keysight Technologies maintains its corporate headquarters at 1400 Fountaingrove Parkway in Santa Rosa, California, which has served as the base since the company's formation.[22] The company employs approximately 15,000 people worldwide, with over 5,000 in the United States across multiple facilities.[23] Operations emphasize innovation in test and measurement, supported by a global network of sales, service, and manufacturing sites, including key activities in supply chain transparency and employee development programs.[24]History
Origins in Hewlett-Packard and Agilent
Keysight Technologies traces its origins to Hewlett-Packard Company (HP), founded on January 1, 1939, by William R. Hewlett and David Packard in a Palo Alto, California garage. HP's early focus included electronic test equipment, with its first product, the Model 200A vacuum tube audio oscillator, commercialized in 1940 for use in sound engineering and wartime applications. The company expanded into precision measurement instruments, producing oscilloscopes as early as 1940 and later spectrum analyzers, signal generators, and network analyzers that became industry standards for electronics design and testing. By the 1970s and 1980s, HP's Electronic Measurements Group had established dominance in high-frequency and RF measurement technologies, driven by innovations in semiconductor testing and communications infrastructure.[5][25] In November 1999, HP restructured to concentrate on computing and printing by spinning off its test and measurement, components, chemical analysis, and medical products businesses into Agilent Technologies. This separation, announced in July 1999, resulted in Agilent's initial public offering on November 18, 1999, raising $2.1 billion in the largest Silicon Valley IPO to date. Agilent inherited HP's legacy test and measurement division, headquartered in Santa Rosa, California, and continued developing advanced instruments for electronic design automation, wireless communications, and aerospace applications. Under Agilent, the division maintained HP's commitment to measurement accuracy and innovation, incorporating digital signal processing and modular architectures to meet evolving demands in high-speed data and 5G precursor technologies.[26][27]Spin-off and Formation
On September 19, 2013, Agilent Technologies announced its plan to separate its electronic measurement business into an independent publicly traded company through a tax-free pro rata spin-off to Agilent shareholders, allowing each entity to focus on distinct markets—Agilent on life sciences, diagnostics, and applied chemical analysis, and the new entity on electronic design and test solutions.[28] The electronic measurement segment, which generated approximately $2.9 billion in fiscal year 2013 revenue and employed about 9,500 people, traced its roots to Hewlett-Packard's original test and measurement operations but had grown into a standalone leader in RF/microwave, high-speed digital, and wireless communications testing.[29] The spin-off company was named Keysight Technologies on January 7, 2014, with Ron Nersesian, previously president and CEO of Agilent's electronic measurement group, appointed as its president and CEO; the headquarters was established in Santa Rosa, California.[30][29] Keysight began operating as a wholly owned subsidiary of Agilent on August 1, 2014, undergoing operational separation including dedicated finance, HR, and IT functions.[31] On September 17, 2014, Agilent's board approved the separation and declared a special stock dividend, distributing one share of Keysight common stock for every two shares of Agilent common stock held by shareholders of record as of October 22, 2014; the U.S. Securities and Exchange Commission declared Keysight's Form 10 registration statement effective on October 6, 2014.[32][33] The spin-off was completed on November 1, 2014, when Agilent distributed 100% of Keysight's outstanding common stock to its shareholders in a tax-free transaction, with Keysight assuming the electronic measurement business's assets, liabilities, and operations as a newly formed entity incorporated in Delaware.[34][35] Trading of Keysight's common stock on the New York Stock Exchange under the ticker symbol "KEYS" commenced on November 3, 2014, marking the company's debut as an independent entity focused on accelerating innovation in electronics through design, emulation, and test solutions.[36] This separation enabled Keysight to operate without Agilent's ownership, pursuing targeted investments in high-growth areas like 5G, aerospace, and automotive electronics while inheriting a portfolio of established test and measurement instruments.[37]Key Milestones Post-2014
In 2015, Keysight expanded its wireless testing capabilities through the acquisition of Anite plc, a provider of software solutions for device, chipset, and network testing.[38] The company launched the X-Series signal analyzers featuring 1 GHz analysis bandwidth in 2016, enhancing signal analysis for complex modulation formats, and established a Software Design Center in Atlanta in partnership with the Georgia Institute of Technology to advance electronic design automation tools.[38] Keysight acquired Ixia in 2017 for $1.6 billion, integrating advanced network test and visibility solutions, and also purchased ScienLab to bolster eMobility testing for electric vehicles and batteries.[38] In 2018, it introduced the PathWave design software platform for integrated RF, microwave, and high-speed digital workflows, debuted the industry's first 5G New Radio (NR)-ready channel emulation solution, and was added to the S&P 500 index on November 6.[38] The Infiniium UXR-Series oscilloscopes, offering up to 110 GHz bandwidth, were launched in 2019, positioning Keysight as a leader in high-performance real-time oscilloscopes, while the company joined the EU's 6G flagship research program to influence next-generation wireless standards.[38] By 2020, Keysight was recognized as the global market leader in oscilloscopes by Frost & Sullivan, released the Infiniium MXR-Series with integrated 8-channel real-time spectrum analysis, and acquired Eggplant to enhance software test automation for digital experiences.[38] In 2021, Keysight introduced the Radar Scene Emulator for over-the-air testing of automotive radars and acquired SCALABLE Network Technologies, Sanjole, and Quantum Benchmark to strengthen network emulation and performance testing; it also committed to net-zero greenhouse gas emissions by 2040.[38] Satish Dhanasekaran assumed the role of president and CEO in 2022, succeeding Ron Nereson; the company launched the four-channel VXG vector signal generator supporting frequencies up to 54 GHz for 5G and satellite applications, and completed acquisitions of Micram (mmWave ICs), Quamotion (mobile app testing), Verisco (cyber-physical systems), and Nordsys (automotive cybersecurity).[38] The next-generation MXG X-Series vector signal generator was unveiled in 2023, offering improved phase noise for aerospace and defense radar testing, alongside acquisitions of Cliosoft (design data management) and ESI Group (simulation software for virtual prototyping).[38] Marking its 10-year anniversary in 2024, Keysight launched the Infiniium HD3 Series oscilloscope with 12-bit resolution for enhanced signal fidelity in power integrity and compliance testing, and acquired AnaPico (ultra-fast signal sources), Riscure (device security testing), and Easics (chiplet integration IP).[38][39] In 2025, Keysight completed major acquisitions including Spirent Communications plc on October 15 for $1.46 billion to expand test automation for networks and positioning, the Optical Solutions Group from Synopsys on October 17 to advance photonic design and verification, and PowerArtist from Ansys to enhance low-power analysis tools; it also received Frost & Sullivan's 2025 Global Company of the Year Award for 6G test and measurement leadership, including the first FCC license for sub-terahertz testing.[40][41][42]Products and Solutions
Test and Measurement Equipment
Keysight Technologies offers a comprehensive portfolio of test and measurement instruments designed for electronic design, validation, manufacturing, and compliance testing across industries including communications, aerospace, automotive, and semiconductors.[3] These instruments encompass hardware solutions for signal generation, analysis, and acquisition, emphasizing high precision, speed, and integration with software for advanced applications such as RF/microwave testing and high-speed digital validation.[4] Oscilloscopes form a core product line, with the InfiniiVision series providing bandwidths from 70 MHz to 2.5 GHz for general-purpose debugging and the Infiniium series offering real-time sampling up to 256 GHz for high-speed serial data analysis.[43] Signal and spectrum analyzers, including the X-Series, deliver frequency coverage from 2 Hz to 110 GHz with features like noise floor extension for low-level signal detection, supporting wireless standards testing and modulation analysis.[44] [45] Network analyzers, such as the PNA family, enable vector measurements of S-parameters with dynamic range exceeding 130 dB and up to 145 GHz frequency range, used for characterizing components like amplifiers and antennas.[46] [47] Additional equipment includes waveform generators for arbitrary signal creation up to 100 GHz, power supplies with precision sourcing, and modular PXI/AXIe systems for scalable, high-density testing in automated environments.[3] In 2025, Keysight introduced the Smart Bench Essentials Plus bundle, integrating oscilloscopes, multimeters, generators, and supplies for enhanced reliability in benchtop setups.[48] These instruments support emerging needs, such as end-of-line testing for electric vehicle batteries via the EV2020B platform and AI data center validation with high-bandwidth signal integrity tools.[49] [50] Keysight's equipment prioritizes measurement accuracy, with traceable calibrations and application-specific software to minimize errors in complex systems like 6G and AI infrastructure.[3]Software and Services
Keysight's software portfolio centers on the PathWave platform, which integrates electronic design automation (EDA), simulation, and test automation tools to accelerate workflows in high-frequency, RF, and digital design applications.[51] PathWave enables quicker insights through automation, faster simulations, and measurement analysis, supporting industries such as wireless communications, aerospace, and semiconductors.[52] Key components include PathWave Test Automation, built on the open-source OpenTAP framework, which modularizes test sequences to reduce development time and costs by up to 50% in complex validation scenarios.[53] Within PathWave, specialized suites address instrument control and data management. PathWave BenchVue Software facilitates multi-instrument synchronization, real-time data capture, and export in formats like MATLAB or Excel, streamlining bench-level testing without custom coding.[54] For EDA, tools like Advanced Design System (ADS) and RFPro provide circuit simulation, electromagnetic modeling, and high-speed digital verification, with recent enhancements incorporating AI-driven optimization for 5G/6G and quantum applications.[55] Electromagnetic design software such as EMPro supports 3D modeling for antenna and PCB analysis, integrating with hardware for hybrid simulation-test environments.[51] Instrument-specific measurement software complements hardware offerings, including applications for oscilloscopes, network analyzers, and signal generators. These tools offer real-time visualization, protocol decoding, and compliance testing for standards like PCIe and USB4, with features for automated pass/fail criteria and report generation.[56] In 2025, Keysight expanded its design software capabilities through acquisitions enhancing optical and photonic simulation tools, adding predictive modeling for laser systems and integrated photonics.[57] Keysight's services portfolio emphasizes lifecycle support, including precision calibration traceable to national standards, performed at over 40 global centers to maintain instrument accuracy within 0.1% tolerances for critical measurements.[58] Repair services utilize AI-driven diagnostics for predictive maintenance, reducing downtime by analyzing usage patterns from connected instruments.[58] Managed services extend to consulting for test strategy optimization, test-as-a-service for scalable validation in automotive and defense sectors, and software assurance programs like KeysightCare, which provide priority support and firmware updates under subscription models starting at annual fees scaled to equipment value.[59] Training programs, delivered via in-person or virtual formats, cover software integration and compliance testing, with certifications ensuring operator proficiency in PathWave ecosystems.[60] These services generated approximately 12% of Keysight's revenue in fiscal year 2024, reflecting their role in sustaining long-term customer deployments.[58]Research and Development
Innovation Strategy
Keysight Technologies' innovation strategy emphasizes software-centric solutions that integrate design, emulation, and testing to enable customers to accelerate breakthroughs in complex technologies such as 5G/6G communications, AI infrastructure, and data centers.[4] This approach prioritizes reducing development risks and time-to-market through tools like digital twins and AI-driven optimization, aligning with the company's mission to connect and secure the world via empirical advancements in measurement accuracy and scalability.[15] By focusing on customer-centric outcomes rather than isolated hardware, Keysight differentiates itself in the test and measurement sector, where hardware alone often limits adaptability to rapid technological shifts.[61] The company commits substantial resources to research and development, allocating approximately 15-16% of annual revenue to R&D initiatives that drive above-market growth and market share gains.[14] [2] In fiscal year 2024, this investment supported advancements in emerging technologies, with software and services growing faster than overall revenue, reflecting a strategic pivot toward recurring, high-margin solutions.[62] Keysight's disciplined capital management balances these expenditures with profitability, ensuring R&D yields verifiable returns through enhanced testing efficiency and new product capabilities.[63] Key focus areas include AI and machine learning for automating design processes, such as RFIC optimization to boost U.S. competitiveness, and ethical AI applications in testing for 6G networks.[64] [65] Collaborations with universities and industry partners, like those enhancing AI/ML testing accuracy, underscore a strategy grounded in shared empirical validation over proprietary silos.[65] This extends to sustainable innovations in clean tech, including electromobility and renewable energy efficiency, where measurement tools address causal challenges in energy systems.[66] Outcomes of this strategy are evident in Keysight's leadership in high-performance solutions for AI data centers and optical innovations, demonstrated at events like ECOC 2025, where tools for machine learning infrastructure reduced deployment risks.[67] The approach has earned recognition for aligning R&D with market needs, such as scalable 6G testing, while maintaining a focus on verifiable performance metrics over speculative trends.[65]Patents and Technological Contributions
Keysight Technologies holds a global patent portfolio comprising 2,318 patents, with 1,793 granted and over 78% actively maintained, reflecting sustained investment in intellectual property protection for test and measurement advancements.[68] These patents span core areas such as signal analysis, frequency measurement, and device characterization, derived from annual R&D expenditures of $919 million in fiscal 2024, which emphasize vertical integration of hardware and software to enable rapid deployment of solutions in communications, aerospace, and semiconductor sectors.[69] This R&D focus has positioned Keysight as a leader in high-precision instrumentation, with innovations addressing challenges like signal integrity and high-speed data validation essential for modern electronic design workflows. In technological contributions, Keysight has pioneered enhancements in oscilloscopes, network analyzers, and spectrum analyzers, including patents for spectrum emission mask compliance testing that optimize measurement efficiency by reorganizing frequency band evaluations (U.S. Patent No. 7,106,790). The company has also advanced source measure units with integrated feedback and measurement paths to improve accuracy in low-level current and voltage testing (U.S. Patent No. 11,619,666).[70] Further innovations include methods for mitigating measurement system instabilities in S-parameter analysis of devices under test (U.S. Patent No. 11,209,471), enabling more reliable characterization of RF and microwave components.[71] Keysight's programmable control instruments leverage field-programmable gate arrays (FPGAs) for flexible test automation, as detailed in patents covering hardware configurations for integrated signal processing and emulation (U.S. Patent No. 10,324,436).[72] In emerging domains, contributions extend to 6G research, where Keysight's test platforms support terahertz-frequency validation and AI-driven network optimization, earning recognition as the 2025 Global Company of the Year in 6G test and measurement from Frost & Sullivan for accelerating industry standards development.[65] These efforts underscore Keysight's role in foundational technologies for next-generation connectivity, with patents like those for oscillator frequency stability measurement (U.S. Patent No. 8,933,706) supporting applications in precision timing and synchronization.[70] Overall, Keysight's patent-driven strategy prioritizes empirical validation of measurement techniques, contributing to industry benchmarks in bit error ratio testing for eye diagram compliance and automated final assembly verification in production environments.[73] This body of work, built on first-mover R&D, sustains competitive edges in markets demanding sub-picosecond accuracy and multi-domain simulation.[74]Acquisitions and Strategic Expansion
Major Acquisitions
In 2015, Keysight acquired Anite plc, a British provider of software solutions for wireless research and development, for approximately $600 million in cash.[75] The deal, completed on August 13, expanded Keysight's capabilities in wireless device conformance testing and network optimization tools.[75] Keysight's largest acquisition occurred in 2017 with the purchase of Ixia, a developer of network test hardware and software, for $1.6 billion in an all-cash transaction finalized on April 18.[76][77] This integration added comprehensive network visibility, cybersecurity validation, and performance testing across OSI layers 2 through 7, targeting data center and cloud environments.[77] In October 2025, Keysight completed the acquisition of Spirent Communications plc for approximately $1.46 billion (£1.16 billion), following regulatory approvals including a U.S. Department of Justice-mandated divestiture of certain Spirent assets to address antitrust concerns in high-speed Ethernet and network security testing.[78][79] The transaction, valued at 202.5 pence per share (including 199 pence in cash plus a 3.5 pence special dividend), bolstered Keysent's portfolio in network emulation, positioning technologies, and service assurance for 5G/6G and satellite applications.[78] Concurrent with the Spirent deal, Keysight acquired Synopsys' Optical Solutions Group and Ansys' PowerArtist on October 17, 2025, to advance photonic design and pre-synthesis power analysis tools for semiconductor and multi-physics engineering workflows.[41] These moves align with Keysight's strategy to integrate software-driven solutions for high-performance computing and optical communications.[41]Recent Transactions and Regulatory Challenges
In October 2025, Keysight Technologies completed the acquisition of Spirent Communications plc for $1.46 billion on October 15, enhancing its portfolio in network and cybersecurity testing technologies.[78][80] Two days later, on October 17, the company finalized purchases of Synopsys' Optical Solutions Group for optical and photonic design software and Ansys' PowerArtist for low-power design verification tools, contributing to a combined transaction value of approximately $1.7 billion across these deals.[81][82] These moves targeted expansion in high-growth areas such as AI-driven networking, 5G/6G validation, and semiconductor design workflows.[83] The Spirent acquisition encountered significant antitrust hurdles. On June 2, 2025, the U.S. Department of Justice filed a civil complaint under Section 7 of the Clayton Act, contending the merger would substantially reduce competition in markets for high-speed Ethernet testing, network security testing appliances, and RF channel emulation systems, potentially leading to higher prices and reduced innovation for customers.[84][85] To resolve these concerns, the DOJ mandated divestiture of the implicated Spirent business units to Viavi Solutions, approved on June 3, 2025, allowing the transaction to proceed under oversight.[86][87] China's State Administration for Market Regulation (SAMR) also imposed conditions, granting conditional approval on September 28, 2025, via a hybrid remedy that included behavioral commitments and asset divestitures to mitigate overlaps in testing equipment markets amid rising AI infrastructure demands.[88][89] This scrutiny reflected broader regulatory focus on consolidation in specialized testing sectors, though both agencies cleared the deal without blocking it outright.[90] No similar challenges were reported for the Synopsys or Ansys asset purchases, which fell below major jurisdictional thresholds.[91]Financial Performance
Revenue Trends and Segments
Keysight Technologies operates two primary reportable segments: the Communications Solutions Group (CSG), which delivers test and measurement solutions for communications ecosystems including 5G/6G networks, satellite systems, and cloud infrastructure; and the Electronic Industrial Solutions Group (EISG), which provides instruments and software for applications in aerospace and defense, automotive, energy, semiconductors, and general electronics testing.[2][92] Total revenue for fiscal year 2024 (ended October 31, 2024) stood at $4.98 billion, reflecting an 8.9% decline from $5.46 billion in fiscal 2023, driven by reduced demand in wireless equipment and semiconductor markets amid inventory corrections and macroeconomic pressures.[12][93] CSG, comprising about 69% of total revenue, contributed approximately $3.43 billion in FY2024, while EISG generated $1.6 billion, a 12% year-over-year decrease attributed to softening semiconductor test demand despite AI-related growth pockets.[94][69] Fiscal 2025 marked a rebound, with quarterly revenues increasing sequentially and year-over-year: Q1 at $1.30 billion (up 3% YoY), Q2 at $1.31 billion (up 7% YoY), and Q3 at $1.35 billion (up 11% YoY), fueled by strengthening orders in communications R&D and industrial applications.[95][96][17] Both CSG and EISG posted 11% YoY growth in Q3 2025, the second consecutive quarter of EISG expansion, signaling broad-based recovery.[97] Full-year FY2025 revenue is forecasted at $5.3 billion, a 6% rise over FY2024, with core growth excluding acquisitions projected at 5-7%.[98][2] Software and services, emphasizing recurring revenue streams, accounted for 36% of Q3 2025 total revenue, with recurring elements at 28%, up from prior periods and supporting margin stability amid hardware cyclicality.[97]| Fiscal Year | Total Revenue ($ billions) | CSG Share (%) | EISG Revenue ($ billions) |
|---|---|---|---|
| 2023 | 5.46 | ~70 | ~1.66 |
| 2024 | 4.98 | 69 | 1.6 |