Keysight Technologies (KEYS) FY2021 results: revenue $4.9 billion, up 17.1% on the year

Keysight Technologies, Inc. (KEYS) reported revenue of $4.9 billion for fiscal 2021, the year ended 31 October 2021, up 17.1% on the year before. Net income was $894 million, up 42.6%, and diluted earnings per share $4.78. The figures are the company's own, from the 10-K it filed with the SEC on 17 December 2021.

Revenue

$4.9 billion

+17.1% on the year

FY2014FY2021

Operating margin

21.9%

18.1% a year earlier

FY2014FY2021

Net income

$894 million

+42.6% on the year

FY2014FY2021

Diluted EPS

$4.78

+44.4% on the year

FY2014FY2021

this yearthe year beforeHover a bar for its figure.

The year in brief

The quarters: Q4 FY2021

Income statement (profit and loss)

$ million	FY2021	FY2020	FY2019	On the year
Revenue	4,941	4,221	4,303	+17.1%
Cost of revenue	1,872	1,688	1,769	+10.9%
Gross profit	3,069	2,533	2,534	+21.2%
Gross margin	62.1%	60.0%	58.9%
Research and development	811	715	688	+13.4%
Selling, general and administrative	1,195	1,097	1,155	+8.9%
Operating income	1,080	765	711	+41.2%
Operating margin	21.9%	18.1%	16.5%
Interest expense	79.0	78.0	80.0	+1.3%
Pre-tax income	1,010	761	715	+32.7%
Income tax	116	134	94.0	-13.4%
Effective tax rate	11.5%	17.6%	13.1%
Net income	894	627	621	+42.6%
Net margin	18.1%	14.9%	14.4%
Diluted EPS	$4.78	$3.31	$3.25	+44.4%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2021	FY2020	FY2019	On the year
Operating cash flow	1,322	1,016	998	+30.1%
Capital expenditure	174	117	120	+48.7%
Free cash flow	1,148	899	878	+27.7%
Free cash flow margin	23.2%	21.3%	20.4%
Cash from investing	-353	-442	-196
Cash from financing	-671	-413	-122
Depreciation and amortisation	291	324	306	-10.2%
Share-based compensation	103	92.0	82.0	+12.0%
Buybacks	673	411	159	+63.7%
Diluted shares, weighted	187m	189m	191m	-1.1%

Balance sheet

$ million	FY2021	FY2020	FY2019	On the year
Shareholders' equity	3,784	3,297	3,004	+14.8%
Debt	1,791	1,789	1,788	+0.1%
Operating lease liabilities	191	149	0.0	+28.2%
Other liabilities	2,015	1,983	1,831	+1.6%
Total liabilities and equity	7,781	7,218	6,623	+7.8%
Fixed assets	650	595	576	+9.2%
Goodwill	1,628	1,537	1,209	+5.9%
Intangible assets	272	361	490	-24.7%
Investments	70.0	61.0	46.0	+14.8%
Cash and equivalents	2,052	1,756	1,598	+16.9%
Receivables	735	606	668	+21.3%
Inventory	777	757	705	+2.6%
Other assets	1,597	1,545	1,331	+3.4%
Total assets	7,781	7,218	6,623	+7.8%

10-K for the year ended 31 October 2021, filed 17 December 2021: the filing.