Keysight Technologies, Inc.KEYS
Keysight Technologies, Inc. Segments Disclosure
16. SEGMENT INFORMATION
Our operating segments were determined based primarily on how the Chief Operating Decision Maker (“CODM”), , views and evaluates our operations. Other factors, including market separation and customer specific applications, go-to-market channels, products and services, and manufacturing are considered in determining the formation of these operating segments.
The CODM is regularly provided with and reviews segment revenues and segment income from operations to support decision-making, set strategic goals, allocate resources, and evaluate each segment’s progress against the company’s plan. The CODM also reviews and approves budgets, including capital expenditures, at the segment level. The segment results are not necessarily in conformity with GAAP and exclude items such as share-based compensation expense, amortization of acquisition-related balances, acquisition and integration costs, restructuring costs, interest income, interest expense, and other items.
A significant portion of the segments’ expenses arise from allocated corporate charges, as well as expenses related to our centralized sales force, and service, marketing and technology functions that we have historically provided to the segments in order to realize economies of scale and to efficiently use resources. Corporate charges include legal, accounting, real estate, insurance services, information technology services, treasury, and other corporate infrastructure expenses. Segment allocations are determined on a basis that we consider to be a reasonable reflection of the utilization of services provided to, or benefits received by, the segments. Newly acquired businesses are not allocated these charges until integrated into our shared services and corporate infrastructure.
Descriptions of our two reportable segments are as follows:
The Communications Solutions Group (“CSG”) serves customers spanning the global commercial communications and aerospace, defense, and government end markets. The group’s solutions consist of electronic design and test software, instrumentation, systems, and related services. These solutions are used in the design, simulation, validation, manufacturing, installation, and optimization of communication systems in wireless, wireline (data center networking), enterprise, and aerospace, defense, and government end markets. Our recent acquisition of Spirent adds wireless network test and assurance and positioning technology solutions to our portfolio, complementing our design, validation, and performance offerings to deliver end-to-end solutions to our customers.
The Electronic Industrial Solutions Group (“EISG”) serves customers across a diverse set of end markets focused on automotive and energy, semiconductor solutions, and general electronics. The group's solutions consist of electronic design, test and simulation software, instrumentation, systems, computer-aided engineering solutions, and related services. These solutions are used in the design, simulation, validation, manufacturing, installation, and optimization of electronic equipment.
The following tables reflect the results of our reportable segments and significant segment expenses as defined above.
| CSG | EISG | Total | |||||||||||||||
| (in millions) | |||||||||||||||||
| Year ended October 31, 2025: | |||||||||||||||||
| Revenue | $ | 3,726 | $ | 1,649 | $ | 5,375 | |||||||||||
| Cost of sales | $ | 1,235 | $ | 667 | $ | 1,901 | |||||||||||
| Research and development | $ | 697 | $ | 258 | $ | 954 | |||||||||||
| Selling, general and administrative | $ | 822 | $ | 325 | $ | 1,147 | |||||||||||
| Other operating expenses (income) | $ | (14) | $ | (7) | $ | (20) | |||||||||||
| Segment income from operations | $ | 986 | $ | 407 | $ | 1,393 | |||||||||||
| Depreciation expense | $ | 83 | $ | 48 | $ | 131 | |||||||||||
| Year ended October 31, 2024: | |||||||||||||||||
| Revenue | $ | 3,420 | $ | 1,559 | $ | 4,979 | |||||||||||
| Cost of sales | $ | 1,107 | $ | 626 | $ | 1,733 | |||||||||||
| Research and development | $ | 618 | $ | 253 | $ | 871 | |||||||||||
| Selling, general and administrative | $ | 784 | $ | 327 | $ | 1,111 | |||||||||||
| Other operating expenses (income) | $ | (10) | $ | (4) | $ | (14) | |||||||||||
| Segment income from operations | $ | 921 | $ | 357 | $ | 1,278 | |||||||||||
| Depreciation expense | $ | 85 | $ | 41 | $ | 126 | |||||||||||
| Year ended October 31, 2023: | |||||||||||||||||
| Revenue | $ | 3,685 | $ | 1,779 | $ | 5,464 | |||||||||||
| Cost of sales | $ | 1,190 | $ | 678 | $ | 1,868 | |||||||||||
| Research and development | $ | 618 | $ | 224 | $ | 842 | |||||||||||
| Selling, general and administrative | $ | 821 | $ | 300 | $ | 1,120 | |||||||||||
| Other operating expenses (income) | $ | (11) | $ | (4) | $ | (15) | |||||||||||
| Segment income from operations | $ | 1,068 | $ | 581 | $ | 1,649 | |||||||||||
| Depreciation expense | $ | 81 | $ | 39 | $ | 120 | |||||||||||
The following table reconciles reportable segments’ income from operations to our income before taxes as reported:
| Year Ended October 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Total reportable segments’ income from operations | $ | 1,393 | $ | 1,278 | $ | 1,649 | |||||||||||
| Share-based compensation | (176) | (145) | (136) | ||||||||||||||
| Amortization of acquisition-related balances | (141) | (139) | (90) | ||||||||||||||
| Acquisition and integration costs | (152) | (91) | (13) | ||||||||||||||
| Restructuring and other | (48) | (70) | (52) | ||||||||||||||
| Income from operations, as reported | 876 | 833 | 1,358 | ||||||||||||||
| Interest income | 102 | 81 | 102 | ||||||||||||||
| Interest expense | (96) | (84) | (78) | ||||||||||||||
| Other income (expense), net | 200 | 35 | (25) | ||||||||||||||
| Income from continuing operations before taxes, as reported | $ | 1,082 | $ | 865 | $ | 1,357 | |||||||||||
“Restructuring and other” includes legal expenses of $17 million and $23 million in 2024 and 2023, respectively.
Major customers. No customer represented 10 percent or more of our total revenue in 2025, 2024, or 2023.
The following table presents segment assets and capital expenditures directly managed by each segment.
| Year Ended October 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CSG | EISG | Total | CSG | EISG | Total | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Segment assets | $ | 6,144 | $ | 3,524 | $ | 9,668 | $ | 4,721 | $ | 2,952 | $ | 7,673 | |||||||||||||||||||||||
| Capital expenditures, net of government incentives | $ | 84 | $ | 43 | $ | 127 | $ | 87 | $ | 60 | $ | 147 | |||||||||||||||||||||||
The following table reconciles segment assets to our total assets:
| October 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Total reportable segments’ assets | $ | 9,668 | $ | 7,673 | |||||||
| Cash and cash equivalents | 1,873 | 1,796 | |||||||||
| Long-term deferred tax assets | 373 | 378 | |||||||||
| Tax receivables | 146 | 249 | |||||||||
| Long-term investments | 211 | 110 | |||||||||
| Accumulated amortization of other intangibles | (1,614) | (1,477) | |||||||||
| Pension and other assets | 644 | 540 | |||||||||
| Total assets | $ | 11,301 | $ | 9,269 | |||||||
Segment assets include goodwill and gross other intangible assets, accounts receivable, inventory, property, plant and equipment, and other assets. Unallocated assets primarily consist of cash and cash equivalents, deferred tax assets, long-term investments, accumulated amortization of other intangible assets, pension assets, and other assets. The increase in segment assets for the year ended October 31, 2025 was primarily due to additions in assets acquired as part of the 2025 acquisitions. See Note 2, “Acquisitions,” for additional information.
The following tables present summarized information for revenue and long-lived assets by country. Revenues from external customers are generally attributed to countries based upon the customer's location. Long-lived assets consist of property, plant, and equipment, operating lease right-of-use assets, and other long-term assets, excluding intangible assets.
| United States | China | Rest of the World | Total | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Year ended October 31, 2025 | $ | 1,869 | $ | 938 | $ | 2,568 | $ | 5,375 | |||||||||||||||
| Year ended October 31, 2024 | $ | 1,769 | $ | 884 | $ | 2,326 | $ | 4,979 | |||||||||||||||
| Year ended October 31, 2023 | $ | 1,928 | $ | 1,005 | $ | 2,531 | $ | 5,464 | |||||||||||||||
| United States | Japan | Germany | Rest of the World | Total | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Long-lived assets: | |||||||||||||||||||||||||||||
| October 31, 2025 | $ | 873 | $ | 293 | $ | 183 | $ | 315 | $ | 1,664 | |||||||||||||||||||
| October 31, 2024 | $ | 726 | $ | 261 | $ | 131 | $ | 338 | $ | 1,456 | |||||||||||||||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 17, 2025 | Showing above |
| 2024 | Dec 17, 2024 | |
| 2023 | Dec 15, 2023 | |
| 2022 | Dec 15, 2022 | |
| 2021 | Dec 17, 2021 | |
| 2020 | Dec 17, 2020 | |
| 2019 | Dec 18, 2019 | |
| 2018 | Dec 18, 2018 | |
| 2017 | Dec 20, 2017 | |
| 2016 | Dec 19, 2016 | |
| 2015 | Dec 21, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.