Keysight Technologies, Inc. stock research
FY2025 Q3
Keysight Technologies (KEYS) Gross Margin — Quarter Ended Jul 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin weakened slightly from both the previous quarter and the year-ago period.
Gross margin takeaway
Quarter ended Jul 31, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin weakened slightly from both the previous quarter and the year-ago period.
- The most observable driver is the relationship between revenue and cost of revenue; gross margin declined as cost of revenue grew more than revenue relative to the prior periods.
- Compared to the immediately preceding quarter, revenue and gross profit were higher but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was slightly lower, indicating a mixed performance.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.7%
Gross profit
$834.0M
Revenue
$1.4B
Cost of revenue
$518.0M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Oct 31, 2024 | $1.3B | $802.0M | $485.0M | 62.3% |
| Jan 31, 2025 | $1.3B | $820.0M | $478.0M | 63.2% |
| Apr 30, 2025 | $1.3B | $814.0M | $492.0M | 62.3% |
| Jul 31, 2025 | $1.4B | $834.0M | $518.0M | 61.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2025
-0.6 pts
Year-over-year change
Jul 31, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the relationship between revenue and cost of revenue; gross margin declined as cost of revenue grew more than revenue relative to the prior periods.
Compared to the immediately preceding quarter, revenue and gross profit were higher but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was slightly lower, indicating a mixed performance.
Monitor the trend of cost of revenue relative to revenue, as gross margin edged down in the current quarter.