Keysight Technologies, Inc. (KEYS): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that powers the future, and honestly, understanding how Keysight Technologies, Inc. makes its $5.37 billion in fiscal year 2025 revenue is key to valuing its next decade. We're talking about deep science-spending $1,007 million on R&D alone to nail down everything from 6G to AI data centers. This Business Model Canvas breaks down the engine room: the strategic partnerships, the high-touch customer relationships, and the recurring revenue streams that make up this complex, high-precision measurement giant. See below how they translate that deep expertise into market leadership.

Keysight Technologies, Inc. (KEYS) - Canvas Business Model: Key Partnerships

You're looking at how Keysight Technologies, Inc. builds its ecosystem through external relationships, which is critical for a company whose software now makes up 25% of its total revenue as of late 2025.

The Key Partnerships block is where Keysight secures access to specialized technology, market reach, and industry influence. This is not just about sales; it's about co-developing the future test environment.

Collaborations with industry leaders like Broadcom and AMD

• - Joint methodology development with Advanced Micro Devices, Inc. (AMD) to redefine benchmarking for Cloud and Edge Infrastructure using 4th generation AMD EPYC™ CPUs.
• - Strategic partnerships with entities like Rapidus, SPHEREA, and NTT to strengthen leadership in advanced semiconductor nodes, such as 2nm.

Deep engagement with global standards bodies

Keysight Technologies maintains deep involvement across numerous standards organizations to ensure measurement methodologies are open, consistent, and repeatable for emerging applications.

Technology and channel partners for global distribution and support

The company relies on a worldwide network of Authorized Partners to deliver everything from off-the-shelf product delivery to complex turnkey solutions. This ecosystem supports the goal of recurring revenue approaching 30% of total revenue.

• - Partner types include Distributors, Resellers, and Rental providers.
• - Examples of channel partners include Electro Rent, Newark element14, and Avnet Electronics Marketing.
• - Partners are incentivized through programs like Partner Sales Incentive Programs (SPIFF) and Deal Registration.

Joint research with academic and governmental organizations

Keysight Technologies reinforces innovation through collaborations with academic and governmental organizations, contributing to the standardization of measurement practices. For context on investment in this area, in fiscal year 2024, Keysight invested over $295 million in community programs, STEM education, and university partnerships.

Strategic M&A to acquire key technologies and talent

Keysight continues to pursue strategic Mergers and Acquisitions to expand technological capabilities, with the software business growing to 25% of revenue by late 2025.

The company has made 1 acquisition so far in fiscal year 2025.

Keysight Technologies, Inc. (KEYS) - Canvas Business Model: Key Activities

You're looking at the core engine driving Keysight Technologies, Inc.'s performance, which is all about deep engineering and execution in high-stakes technology areas. The activities here are capital-intensive and require specialized expertise to maintain market leadership.

High-investment R&D for 6G, AI, and silicon photonics

Keysight Technologies, Inc. dedicates significant capital to research and development to stay ahead of the technology curve. For instance, in the first quarter of fiscal year 2025, the company increased its R&D investment to $230M, which represented about 18% of revenue for that period. This investment directly fuels work in next-generation areas. The semiconductor segment saw revenue growth by the double-digits, specifically driven by foundry and IDM investments in AI-driven advanced nodes and silicon photonics (SiPh). Also, the Communications Solutions Group (CSG) growth in Q4 2025 was fueled by ongoing investment in AI data center infrastructure and Non-Terrestrial Network (NTN) applications. At the India Mobile Congress 2025, Keysight Technologies unveiled 20 advanced AI-enabled 6G and wireless testing solutions, showing a concrete output of this R&D focus.

Developing and integrating complex hardware and software solutions

The core activity involves fusing advanced measurement science with software-centric approaches. This is evident in the revenue mix and segment performance. In Q1 FY25, software and services revenue was approximately 40% of total revenue, with recurring software and services revenue at about 31%. By Q3 FY25, software and services revenue held steady at 36% of overall Keysight revenue, with recurring revenue at 28%. The integration effort is clear when looking at segment results:

This shows the successful commercialization of integrated hardware and software offerings across key markets.

Manufacturing and global supply chain management

Managing a global manufacturing footprint and supply chain is critical, especially given recent market dynamics. A major activity in late 2025 was the integration of Spirent Communications, which Keysight completed in a deal valued at about £1.16 billion (or approximately €1.33 billion). Management expects to capture $100 million in annual synergies from recent deals, which speaks directly to the activity of integrating and optimizing the combined operational structure. The company serves more than 30,000 customers globally, requiring a disciplined approach to logistics and production.

Executing strategic customer engagements

Keysight Technologies, Inc. focuses on deep, strategic relationships rather than just transactional sales. The company serves more than 30,000 customers across its key markets, including communications, aerospace and defense, automotive, and semiconductor manufacturing. The successful execution of its strategy is reflected in the overall fiscal year 2025 performance, where total revenue reached $5.37 billion, a 7.95% increase from 2024. The company's quarterly orders in Q4 2025 amounted to $1.533 billion, marking a 14% year-over-year growth, which shows strong customer commitment translating into bookings.

Software and services delivery, including cyber resilience solutions

Delivering ongoing value through software and services is a key focus to build recurring revenue streams. The software and services portion of the business was 36% of total revenue in Q3 FY25. This delivery includes specialized security validation. For example, one demonstration integrated protocol fuzzing, penetration testing, and threat emulation to validate device resilience against cyberattacks, helping engineers harden designs and accelerate secure product deployment. Furthermore, Ixia's (now part of Keysight) BreakingPoint solution is used to achieve visibility into network activity for next-generation firewalls.

• Software and services revenue was 36% of overall Keysight revenue in Q3 FY25.
• Recurring revenue component stood at 28% in Q3 FY25.
• The company is focused on solutions for security validation and threat emulation.

Finance: draft 13-week cash view by Friday.

Keysight Technologies, Inc. (KEYS) - Canvas Business Model: Key Resources

You're looking at the core assets Keysight Technologies, Inc. relies on to run its business as of late 2025. These aren't just things they own; they are the fundamental capabilities that drive their value proposition.

The foundation rests heavily on proprietary intellectual property (IP) and deep measurement science expertise. Keysight Technologies, Inc. maintains a strategy of investing in product development to address evolving market needs, like faster data rates and new form factors. This is backed by a commitment to research and development (R&D).

Regarding human capital, the company reported a total employee count of approximately 15,500 people worldwide as of October 31, 2024. Keysight Technologies, Inc. has explicitly stated a strategic priority to invest in R&D, planning to allocate approximately 16% of its revenue annually to maintain its competitive edge. Based on the Fiscal Year 2025 revenue of $5.37 billion, this translates to an approximate annual R&D investment of $859.2 million for that year.

The tangible assets include high-precision test and measurement hardware instruments, which form the backbone of its Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) segments. Furthermore, the company prioritizes advanced software and emulation platforms. The increasing revenue from Software and Services, especially Annual Recurring Revenue (ARR), is a core element of the long-term strategy, seen as more resilient to macroeconomic shifts. Demand is specifically driven by investment in areas like AI data center infrastructure.

Finally, the balance sheet provides significant financial backing. As of October 31, 2025, Keysight Technologies, Inc. held $1.87 billion in cash and cash equivalents. This liquidity supports ongoing operations, strategic acquisitions, and capital deployment.

Here's a quick look at some of the key metrics underpinning these resources:

The company's focus on R&D investment is critical for maintaining its position in evolving technology standards, such as 6G research and AI-driven design automation.

You can see the direct impact of these resources on the business segments:

• Proprietary IP supports leadership in markets like AI data center infrastructure.
• Deep science expertise drives solutions for non-terrestrial networks and defense modernization.
• Hardware instruments are central to the $990 million Q4 2025 revenue for the CSG segment.
• Software platforms are key to the growing Software and Services revenue stream.

Finance: draft 13-week cash view by Friday.

Keysight Technologies, Inc. (KEYS) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Keysight Technologies, Inc. over the competition. It boils down to enabling their next big thing, faster and with less uncertainty. This value is backed by serious financial commitment and tangible market results.

Accelerating innovation from silicon design to secure deployment

Keysight Technologies, Inc. puts significant capital behind staying ahead of the curve. For instance, R&D expense for the third quarter of fiscal year 2025 hit $250 million, representing about 19% of that quarter's revenue. That's courage in action, aimed at future-proofing your work. This investment fuels advancements in areas like AI-driven semiconductors, where the Electronic Industrial Solutions Group (EISG) saw double-digit revenue growth in wafer test solutions in Q3 2025. Also, the company is actively involved in shaping the future of AI infrastructure, partnering with Meta to demonstrate large-scale validation of GPUs and networking prior to cluster deployment.

Market-leading design, emulation, and test solutions

The market is responding to this focus. Keysight Technologies, Inc. returned to full-year growth in fiscal year 2025, with total revenue reaching $5.37 billion, up 8% in orders and revenue for the full year. The Communications Solutions Group (CSG) is a powerhouse, reporting Q4 2025 revenue of $990 million, an 11% year-over-year increase. This leadership is also reflected in the software-centric strategy; in fiscal year 2025, software and services accounted for approximately 37% of Keysight Technologies' revenue, with annual recurring revenue at 29% of the total.

Here's a quick look at the segment performance that underpins this market leadership as of the end of fiscal year 2025:

Enabling next-generation technologies like 6G and 1.6T networking

You can't build what you can't measure, and Keysight Technologies, Inc. is providing the yardsticks for the next wave. Optical speed refresh cycles are gaining momentum, moving from 400G to 800G to 1.6T. In Q4 2025, the company collaborated with Broadcom to validate next-generation 1.6T networking silicon and custom AI accelerators. On the wireless front, R&D activity remains steady for early 6G research, alongside work on 5G-Advanced (Releases 18 and 19) and Non-Terrestrial Networks. The Aerospace, Defense, and Government segment showed stability, with Q3 2025 revenue growth of 8%, supported by modernization efforts.

Providing cyber resilience and security testing (Securing the World)

The vision explicitly includes Securing the World, which is now heavily integrated through strategic moves. The recent acquisition of Spirent, alongside others, is expected to contribute approximately $375 million in revenue in fiscal year 2026, while the company works to realize in excess of $100 million of synergies. This expansion directly bolsters capabilities in network assurance and security testing, which is critical as AI-powered cyberattacks increase.

Reducing customer risk and time-to-market for complex electronics

The value proposition here is about de-risking your development cycle. By providing the tools needed to prove a new technology actually works-from design through emulation to test-Keysight Technologies, Inc. directly cuts down on development time. The company's solutions are enabling major innovation waves across AI and accelerated compute, next-gen semiconductors, and defense modernization. The focus on EDA (Electronic Design Automation) portfolio expansion, via acquisitions like Cliosoft and Spyrin, helps integrate tools tighter, which is key for reducing iteration cycles in complex chip design. If onboarding takes 14+ days, churn risk rises, so speed in solution deployment matters a lot.

Keysight Technologies, Inc. (KEYS) - Canvas Business Model: Customer Relationships

You're looking at how Keysight Technologies, Inc. keeps its biggest customers locked in and collaborating, which is key when your products are mission-critical for next-generation tech development. The relationship isn't just transactional; it's about being in the trenches with them from the start.

Dedicated, high-touch R&D collaboration with key OEMs

Keysight Technologies, Inc. embeds itself early in the development cycles of major players. This deep engagement is what drives demand across the board. For example, in April 2025, Keysight EDA collaborated with Intel Foundry on EMIB-T Silicon Bridge Technology for next-generation AI and Data Center solutions. Also, in February 2025, Keysight and Ericsson established a Pre-6G test setup using Centimeter Wave Spectrum. The CEO noted that the fiscal year 2025 performance underscored the strength of their long-term strategy and deep customer engagement. This engagement is visible in the steady pace of R&D activity related to 5G-Advanced and early 6G research, including Non-Terrestrial Networks investments. The company's fiscal year 2025 revenue reached $5.37 billion, up from $4.98 billion the prior year, showing the scale of these partnerships.

Long-term, strategic relationships with market-defining innovators

The focus on future-defining technologies ensures these relationships are strategic and long-term. Growth in fiscal year 2025 was robust, with order momentum accelerating through the year. The Communications Solutions Group (CSG) revenue in Q4 2025 was $990 million, up 11 percent year-over-year, driven by AI data center infrastructure and non-terrestrial network applications. The Electronic Industrial Solutions Group (EISG) revenue in the same quarter was $429 million, up 9 percent year-over-year, reflecting strength in leading-edge semiconductor solutions. These results reflect leadership across markets where innovation cycles are long, such as aerospace and defense, where orders grew by double-digits year-over-year in Q3 2025.

Customer support and professional services for installed base

Maintaining the installed base is clearly a priority, as evidenced by the growing proportion of revenue from recurring sources. This segment provides a stable foundation, even when hardware sales fluctuate. Honestly, this recurring revenue stream is what helps smooth out the bumps. Here's the quick math on the services component as of the third quarter of fiscal year 2025:

The company's cash flow from operations for the full fiscal year 2025 was a very healthy $1.41 billion, supporting the infrastructure needed for these services.

Community building via Keysight World events

Keysight Technologies, Inc. actively builds a community around its technology roadmap through major events. These gatherings serve as vital touchpoints for knowledge sharing and demonstrating future capabilities. For instance, the flagship Keysight World Tech Day India 2025 took place on July 8, 2025, bringing together CXOs, engineers, and researchers. The event focused on key domains shaping the future:

• - 6G and Wireless, including AI-native networks and THz communication.
• - AI Infrastructure, covering compute fabrics and optical interconnects.
• - Automotive, focusing on EV battery testing and V2X.
• - AI Networks, diving into network emulation and multi-cloud testing.

Other community engagements in late 2025 included the Future Networks World Forum on November 10, 2025, in Bengaluru, and the Keysight Measurement Forum 2025 events in Chennai and Pune.

Keysight Technologies, Inc. (KEYS) - Canvas Business Model: Channels

Keysight Technologies, Inc. employs a multi-faceted channel strategy to reach its diverse customer base across the globe.

• - Direct sales force for large, strategic accounts
• - Global network of distributors and value-added resellers
• - Online presence for software and defintely services
• - Industry events and standards bodies for early engagement

The shift towards recurring revenue streams is clearly supported by the channel strategy emphasizing digital delivery.

For the full fiscal year 2025, Keysight Technologies, Inc. reported total revenue of $5.37 billion. The focus on software and services is evident in its contribution to the top line.

The direct sales channel is critical for securing major contracts, which is reflected in the high-touch customer engagement metrics achieved over the past year.

• The company executed over 150 strategic engagements with market-defining innovators in the past year.
• Expanded the customer base with more than 3,000 new logos in the past year.

Engagement through industry presence helps seed future sales, particularly in the high-growth areas like AI infrastructure and defense modernization.

Keysight Technologies, Inc. actively participates in the ecosystem to maintain its position at the forefront of technology adoption.

• Actively participated in industry events such as Mobile World Congress and European Microwave.
• Engaged with over 30 standards bodies with industry leaders.

The online channel supports the growing software and services component, which enhances revenue stability by moving away from purely cyclical hardware sales.

Finance: review Q4 backlog against Q1 2026 guidance for channel fulfillment risk by end of next week.

Keysight Technologies, Inc. (KEYS) - Canvas Business Model: Customer Segments

You're looking at how Keysight Technologies, Inc. (KEYS) organizes its sales and engineering efforts across its diverse customer base as of late 2025. The company structures its customer focus primarily around two major reporting segments: the Communications Solutions Group (CSG) and the Electronic Industrial Solutions Group (EISG).

For the fourth quarter of fiscal year 2025, Keysight Technologies, Inc. reported total revenue of $1.42 billion. The breakdown between these two main groups gives you a clear picture of where the immediate revenue strength was concentrated.

The Communications Solutions Group (CSG) brought in $990 million in Q4 2025 revenue, showing an 11 percent increase year-over-year. This group directly addresses the communications vertical you asked about, which includes wireless and wireline testing, and is a key beneficiary of next-generation standards development.

The Electronic Industrial Solutions Group (EISG) generated $429 million in Q4 2025 revenue, marking a 9 percent increase over the prior year. This group houses the semiconductor, general electronics, and automotive/energy testing customers.

Here's a deeper look at how the specific customer types map to these groups and the activity levels observed in the first three quarters of fiscal year 2025:

• - Communications (Wireless/Wireline, 5G/6G, Non-Terrestrial Networks): This is primarily within CSG Commercial Communications, which generated $660 million in Q4 2025 revenue. Demand was explicitly driven by investments in AI data center infrastructure and non-terrestrial network applications. Growth in wireline and wireless testing was strong in Q4 2025.
• - Aerospace, Defense, and Government (ADG): Also part of CSG, ADG revenue reached $330 million in Q4 2025. This segment showed 8 percent growth in Q3 2025 and strong order growth was highlighted by the CEO. Defense modernization was a key driver in Q4 2025.
• - Semiconductor and High-Performance Computing (AI data centers): These customers fall under EISG. In Q1 2025, semiconductor revenue was up modestly, driven by foundry and memory customers needing parametric wafer test solutions. The Q4 2025 results confirm ongoing demand related to AI data center infrastructure.
• - Automotive and Energy (EV, battery testing): Also within EISG. Market conditions for Automotive remained challenged in Q1 2025, showing muted activity in manufacturing and EV battery development. However, EISG saw growth across Automotive and Energy in Q3 2025.
• - General Electronics, Industrial Automation, and Medical Devices: These fall under EISG General Electronics. In Q1 2025, orders grew for the second consecutive quarter, driven by high-speed PCB and connectivity applications. For the full fiscal year 2025, software and services accounted for approximately 37% of total Keysight revenue.

To give you a sense of the scale across these end-markets in a less recent but more granular quarter, Q1 2025 revenue was split as follows:

• - Commercial Communications: $572 million.
• - Aerospace, Defense & Government: $311 million.
• - Electronic Industrial Solutions (Total): $415 million.

The total revenue for Keysight Technologies in fiscal year 2025 was $5.37 billion.

Keysight Technologies, Inc. (KEYS) - Canvas Business Model: Cost Structure

The Cost Structure for Keysight Technologies, Inc. is heavily weighted toward innovation and market presence, reflecting its position as a provider of complex electronic measurement solutions.

High R&D expenditure is a core component, necessary to maintain technological leadership in evolving fields like 5G/6G, AI infrastructure testing, and advanced automotive electronics. For fiscal year 2025, this expenditure reached $1,007 million.

Operating expenses include Significant Selling, General, and Administrative (SG&A) costs, which totaled $1,474 million in FY25. This reflects the global sales force, marketing efforts, and administrative overhead required to support a worldwide customer base across specialized markets.

The Cost of goods sold (COGS) for complex hardware manufacturing represents a substantial portion of the cost base, directly tied to the production of high-precision instruments and systems. While the exact COGS figure for fiscal year 2025 isn't explicitly detailed here, the overall financial scale of the business is evident in the top-line results:

You should note that Keysight Technologies, Inc. often excludes certain non-recurring or variable costs when presenting non-GAAP performance metrics. This practice directly impacts how acquisition and restructuring costs are viewed internally and externally.

Costs associated with strategic acquisitions and restructuring are typically excluded from non-GAAP measures to show core operating performance. These excluded charges may cover:

• Amortization of acquired intangible assets.
• Legal, accounting, and due diligence costs related to mergers and acquisitions.
• Incremental expenses from restructuring initiatives, such as employee separation costs or facility-related costs.

The company evaluates these items on an individual basis, as they are not considered normal recurring operating expenses.

Keysight Technologies, Inc. (KEYS) - Canvas Business Model: Revenue Streams

You're looking at how Keysight Technologies, Inc. brings in its money as of late 2025. It's a mix of big upfront sales and sticky, ongoing income streams. Here's the quick math on the revenue sources based on the latest full fiscal year data.

The Total fiscal year 2025 revenue was $5.37 billion. This shows a clear return to growth for Keysight Technologies, Inc. compared to the prior year's total of $4.98 billion.

The revenue mix is heavily weighted toward their core offerings, but the growth in intangible assets is notable:

• - Sales of high-precision electronic test and measurement hardware form the base of the business.
• - Software and emulation solutions, representing 36% of overall revenue. This is a key area of focus, showing the shift toward digital offerings.
• - Recurring revenue from services and support contracts (approx. 28% of total). This provides a level of predictability to the top line.

To give you a clearer picture of the sales activity near the end of the fiscal year, look at the segment performance for the fourth quarter of fiscal year 2025:

The CSG revenue of $990 million and EISG revenue of $429 million in the fourth quarter are the primary sources that feed into the total hardware and solutions sales figure. If you look at the Q3 data, the software and services portion was explicitly called out at 36% of total revenue, so you can infer the remaining 64% is primarily hardware and related non-recurring software sales. What this estimate hides is the exact split between hardware and software within the segment reports, but the 36% figure gives you the software exposure directly.

The recurring component is also important for valuation; that 28% figure from Q3 FY25 suggests a solid base of service contracts and subscriptions that support operations even when new hardware orders fluctuate. That's a defintely valuable part of the model.