$KEYS

Keysight Technologies, Inc.

CIK:0001601046|SEC Filings

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2026	Jul. 31, 2025	Jul. 31, 2026	Jul. 31, 2025
Net revenue:
Revenues	$ 1,846	$ 1,352	$ 5,163	$ 3,956
Costs and expenses:
Cost of Product and Service Sold	630	518	1,774	1,488
Research and development	312	250	935	749
Selling, general and administrative	446	354	1,349	1,075
Other operating expense (income), net	(3)	(4)	(11)	(15)
Total costs and expenses	1,385	1,118	4,047	3,297
Income from operations	461	234	1,116	659
Interest income	20	31	54	71
Interest expense	(26)	(28)	(80)	(68)
Other income (expense), net	22	4	3	98
Income before taxes	477	241	1,093	760
Provision for income taxes	80	50	66	143
Net income	$ 397	$ 191	$ 1,027	$ 617
Net income per share:
Basic (in dollars per share)	$ 2.33	$ 1.11	$ 6.00	$ 3.58
Diluted (in dollars per share)	$ 2.30	$ 1.10	$ 5.93	$ 3.56
Weighted average shares used in computing net income per share:
Basic (in shares)	171	172	171	172
Diluted (in shares)	173	173	173	173
Products
Net revenue:
Revenues	$ 1,464	$ 1,023	$ 4,028	$ 2,994
Costs and expenses:
Cost of Product and Service Sold	504	409	1,417	1,170
Services and other
Net revenue:
Revenues	382	329	1,135	962
Costs and expenses:
Cost of Product and Service Sold	$ 126	$ 109	$ 357	$ 318

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2026	Jul. 31, 2025
Cash flows from operating activities:
Net income	$ 1,027	$ 617
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	116	97
Amortization	202	104
Share-based compensation	181	129
Deferred tax expense (benefit)	(28)	(58)
Excess and obsolete inventory-related charges	29	30
Gain on sale of investments	(6)	0
Unrealized loss (gain) on investments	38	(39)
Other non-cash expenses (income), net	13	5
Changes in assets and liabilities:
Accounts receivable	(138)	173
Inventory	(26)	(21)
Accounts payable	72	29
Employee compensation and benefits	(20)	(8)
Deferred revenue	64	(12)
Income taxes payable	(63)	42
Other assets and liabilities	(82)	96
Net cash provided by operating activities	1,379	1,184
Cash flows from investing activities:
Investments in property, plant and equipment	(97)	(90)
Acquisitions of businesses and intangible assets, net of cash acquired	(33)	(3)
Payments to Acquire Other Investments	(27)	(4)
Proceeds from sale of investments	22	0
Net cash used in investing activities	(135)	(97)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans	68	63
Payment of taxes related to net share settlement of equity awards	(41)	(38)
Proceeds from issuance of long-term debt	0	748
Payment of acquisition-related consideration	(21)	0
Treasury stock repurchases, including excise tax payments	(520)	(278)
Payments of Debt Issuance Costs	(1)	(8)
Net cash provided by (used in) financing activities	(515)	487
Effect of exchange rate movements	3	9
Net increase in cash, cash equivalents, and restricted cash	732	1,583
Cash, cash equivalents, and restricted cash at beginning of period	1,890	1,814
Cash, cash equivalents, and restricted cash at end of period	2,622	3,397
Supplemental Cash Flow Elements [Abstract]
Interest payments	90	39
Income tax paid, net	127	74
Investments in property, plant and equipment included in accounts payable	$ 18	$ 19

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Millions	Jul. 31, 2026	Oct. 31, 2025
Current assets:
Cash and cash equivalents	$ 2,605	$ 1,873
Accounts receivable, net	1,067	939
Inventory	1,047	1,050
Other current assets	567	486
Total current assets	5,286	4,348
Property, plant and equipment, net	735	795
Operating lease right-of-use assets	221	236
Goodwill	3,462	3,424
Other intangible assets, net	1,113	1,304
Long-term investments	188	211
Long-term deferred tax assets	327	373
Other assets	589	610
Total assets	11,921	11,301
Current liabilities:
Current portion of long-term debt	700	0
Accounts payable	424	355
Employee compensation and benefits	379	399
Deferred revenue	707	652
Income and other taxes payable	163	207
Operating lease liabilities	53	51
Other accrued liabilities	186	186
Total current liabilities	2,612	1,850
Long-term debt	1,817	2,534
Retirement and post-retirement benefits	76	75
Long-term deferred revenue	250	232
Long-term operating lease liabilities	176	193
Other long-term liabilities	419	536
Total liabilities	5,350	5,420
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding	0	0
Common stock; $0.01 par value; 1 billion shares authorized; 203 million and 202 million shares issued, respectively	2	2
Treasury Stock, Common, Value	(4,319)	(3,799)
Additional paid-in-capital	3,058	2,851
Retained earnings	8,102	7,075
Accumulated other comprehensive loss	(272)	(248)
Total stockholders' equity	6,571	5,881
Total liabilities and equity	$ 11,921	$ 11,301