A：The secular tailwinds contributing to Keysight's performance include AI-driven technology transformations, next generation connectivity, rising semiconductor complexity, and defense modernization.

A：Within commercial communications, wireline experienced record orders, surpassing wireless for the first time, driven by demand for both R&D and manufacturing solutions across various technologies.

A：The demand for AI infrastructure is being shaped by four main drivers: the rapid scaling of hyperscalers and their ecosystems, the movement to higher speeds and Ethernet-based AI networking, high-speed digital, optical, and protocol solutions for design and validation, and system level validation and benchmarking for AI cluster deployment.

A：The significance of the upcoming Design Con and OSC events for Keysight lies in the company's thought leadership and partnerships which will be on display, showcasing its role in the industry.

A：For non-terrestrial networks, Keysight's EDG emulation platforms have expanded coverage to non-terrestrial network system use cases, achieving a live NTN connection with Samsung in a 3 GPP defined satellite frequency band. In AI at the edge, the company's newly launched race Sim AI ran offering enables the emulation of real-world network environments to train AI models for network functions.

A：In aerospace, defense, and government markets, Keysight experienced record first-quarter orders and growth across all regions, driven by a heightened global focus on deterrence and defense modernization priorities, with program expansions, production automation, and new system deployments across various applications.

A：The growth in the electronic industrial solutions market was driven by momentum in AI-related innovation and infrastructure investments across the global supply chain, particularly due to the increasing complexity of high-performance PCBs. Keysight's solutions addressed customer needs across major PCB design standards by investing in advanced measurement capabilities for higher speed and higher frequency testing.

A：The automotive and energy business experienced stable overall performance with orders growing for the second consecutive quarter. Annual renewals in the ESI simulation portfolio and key wins with leading electric vehicle manufacturers were reported. New megawatt charging solutions were introduced, which help reduce design time and deliver reliable high-power charging systems.

A：The company is pleased with the start of the year and has confidence in its ability to outperform due to a strong pipeline of solutions and market momentum. It serves a diversified set of end markets to capture growth opportunities as they emerge and believes its core strengths drive success and position it for future inflection points.

A：Q1 total company revenue was $1600 million, up 11% on a reported basis, with acquisitions adding earnings per share. On a core basis, excluding acquisitions and currency impacts, revenue grew. Ed orders were up 22% on a core basis. Gross margin was 66.7% and operating margin was 26.6%, with net income at $376 million and earnings per share at $2.17.

A：The Communications Solutions Group generated revenue of $1 billion, with a gross margin of 68.5% and an operating margin of 27.5%. The Electronic Industrial Solutions Group generated $476 million in revenue, an increase of 15% with growth across all three markets. Software and services comprised approximately 40% of Keysight's revenue, and annual recurring revenue was 20% of total revenue.

A：The company expects Q2 revenue in the range of $1.069 billion to $1.071 billion, representing 30% year-over-year growth. Q2 earnings per share are expected to be in the range of $2.27 to $2.33, representing year-over-year growth at the midpoint. The guidance is based on a diluted share count of approximately 110 million shares. For the remainder of the fiscal year, the base case has been updated to expect total annual revenue and earnings growth just above script.

A：The company's full-stack offering, which includes physical layer tools and emulation capabilities, enables the company to bring its breadth of portfolio and technology to bear on new emerging use cases in a way that product-driven organizations may struggle with due to product obsolescence.

A：The company's physical layer portfolio plays a crucial role in enabling new AI racks and clusters by designing and inventing hundreds of new components that are integrated into these clusters, allowing for scale even before deployment.

A：The acceleration of technology cycles and growth in the company's business are driven by the simultaneous innovation in multiple areas such as optics, electrical transmission, long haul, and short haul perspectives, and scale up networks. These innovations attract a diverse range of customers and contribute to the growth seen in the company's wireline and IT dynamic.

A：The company is focused on organically growing the proportion of its business from software and services, supplemented by acquisitions like the ones of ESI and the optical design and power art business, which have increased the software mix and added about three points to the overall software for Keysight.

A：The projected growth for the second half of the year is a little over 20%, and for the full year revenue, it is substantially above the long-term model, with potential upside if the current momentum can be sustained. Factors influencing these projections include strong order and revenue growth, visibility extending into Q3, and a strong funnel as of Q2.

A：The company is not exposed to high-end demand for high bandwidth memory due to its specific focus. However, there is some margin pricing increase on memories, which is factored into the outlook and guide. The company feels good about its ability to execute for the next couple of quarters.

A：The competitive landscape in the company's AI business is dynamic and fast-moving. Despite the strength of demand and the size of the customers, the company leverages its solution-oriented approach and in-house tech stack to maintain a competitive advantage. However, the exact pricing dynamics and the number of competitors in various end markets are not explicitly discussed.

A：The company stays ahead of customer innovation demands by participating in global standards bodies, providing products, and ensuring customer support through teams around the world. Their goal is to design competitive products that can grow gross margins.

A：The improved sales in the second quarter were largely attributed to continued growth in demand for AI infrastructure as it is being deployed at scale. Manufacturing confidence increased as people worked to get their designs correct and deploy high-quality products, leading to improved conferences and scale building in the industry.

A：The company is optimistic about its position in the non-person networks (NTN) space, which involves the use of satellite technologies for commercial, direct device applications. The integration of terrestrial, airborne, satellite communications, and sensing technology is seen as part of this vision. Early work with standards and recent wins have positioned the company well, and they feel confident about growing their wireless business in the current year based on NTN and other applications like LEO.

A：The company anticipates that the timing of some larger deals will cause revenue to be shipped in Q2, which could make orders and revenue closely aligned. There isn't a significant implication from the lean area within the quarter other than broad strength. The revenue guide provided suggests that the revenue will be around a billion dollars, with the timing of larger deals affecting the precise alignment of orders and revenue in the second quarter.

A：In the current quarter, the hardware, software, and services mix was 40%, with software specifically accounting for more than 25% and ranging between 26-27%. Recent acquisitions have maintained this mix, with opportunities in wireline space expected to slightly increase manufacturing activity related to data center build-out. However, this is expected to be Xi over the long term, and currently, the company is slightly below LRD in the current environment.

A：The sequential growth in wireline is attributed to opportunities in both scale up and scale out. The company is seeing expansion in clusters and graphs with a capitalization on scale, as well as activity in 1.6 Tb RD, 448 GB per lane, and 3.2 TB RD, indicating expansion in these areas as well. Both scale up and scale out represent opportunities for the company in both RD and manufacturing.

A：The upcoming guide indicates a 100 million increase in revenue. The company expects this increase to be a result of compounding momentum due to a number of tailwinds that have been underpinning their growth strategy, such as next-generation semiconductors, wireless connectivity, semiconductor defense modernization, AI, and the wireline sector. These factors are coming together to drive the revenue increase.

A：The Keysight sales organization had the highest quarterly revenue ever, excluding acquisitions, and its second highest on record. This achievement is unprecedented for a quarter and marks seven consecutive quarters of year-over-year order growth.

A：The robust MPI pipeline and recent synergistic opportunities, especially with the acquisition of Spirent, position Keysight with the right solutions at the right time. They are engaging with the appropriate customers and market makers within their ecosystem to capture these opportunities.

A：Since the company's launch, Keysight has positioned itself as a software-centric solutions company, focusing on solving customers' toughest problems better than they can solve them internally or with others. The company continues to deepen its relationship with customers and invest in new capabilities and expanding into new use cases. While not exclusively a software business or hardware business, software is part of the value proposition. Keysight is embedding AI into its tools to make them easier for customers to use and for simulating more complex things.

A：Keysight is investing in new capabilities and expanding into new use cases. The company is embedding AI into its tools to facilitate customer use and simulate more complex scenarios. The approach is to be at the forefront of technology and stay on top of the deep physics that underlies its offerings.

A：The number one priority for Keysight is to invest in the organic growth of its business, with a focus on AI and rapidly moving AR markets. The company is also investing in scale capacity to capture opportunities. In terms of returning capital to investors, Keysight's board has authorized a $5 billion stock buyback authorization as a way to return capital.

A：The recent increase in demand and orders for Keysight's products is driven by a broad-based demand across all of its businesses and regions. The company is experiencing a demand in R&D and manufacturing, as well as in its aerospace and defense business, which has nothing to do with manufacturing in the same way it's considered in the wireline business. The wireless business and ESG business were also up.