06:31 AM EDT, 05/21/2025 (MT Newswires) -- Keysight Technologies ( KEYS ) shares rose early Wednesday as the company lifted its full-year growth expectations and reported better-than-anticipated fiscal second-quarter results.

The electronics test and measurement equipment manufacturer now projects revenue growth for fiscal 2025 to be at the midpoint of its 5% to 7% long-term target, Chief Financial Officer Neil Dougherty said during a late Tuesday earnings call, according to a FactSet transcript. Per-share earnings are now set to increase "slightly" above its 10% growth guidance, according to Dougherty.

Dougherty previously told analysts in February that the company expected revenue to rise at the low end of its growth outlook range and earnings to be consistent with its 10% target. The current consensus on FactSet is for non-GAAP EPS of $7.01 and sales of $5.27 billion. The stock rose 4.4% in the most recent premarket activity.

"We have not seen any material adverse effects on demand from tariffs, and are therefore raising our full-year growth expectations," Dougherty said on the Tuesday call. Keysight ( KEYS ) has already "taken action across multiple vectors to reduce the incremental impact of tariffs," while its exposure to China is "minimal," the CFO added.

"Based on actions taken to date, we estimate our annual exposure at approximately $75 million to $100 million," Dougherty told analysts. "We are working to further reduce this exposure and offset any remaining impact."

The US and China recently agreed to suspend most reciprocal duties on each other's goods for 90 days. The two sides had been in a trade war since President Donald Trump's announcement of sweeping new tariffs early last month.

The company expects the most significant impact of tariffs in the third quarter, assuming that duties remain at the current level, with full mitigation by the end of the fiscal year, according to Dougherty. "Given the high priority that we place on maintaining our long-term customer relationships, our pricing actions were not applied to pre-tariff backlog," Dougherty said on the call.

For the ongoing quarter, Keysight ( KEYS ) forecasts adjusted EPS to be in a range of $1.63 to $1.69 and sales to come in between $1.31 billion and $1.33 billion. The Street is looking for non-GAAP EPS of $1.67 and sales of $1.31 billion.

The company posted adjusted EPS of $1.70 for the three-month period ended April, up from $1.41 the year before, ahead of the average analyst estimate on FactSet for $1.65. Revenue climbed to $1.31 billion from $1.22 billion, ahead of the market's view for $1.28 billion.

"The demand environment was solid in the quarter, with orders growing 8% year-over-year and 4% sequentially to $1.3 billion," Chief Executive Satish Dhanasekaran said on the call. "Even as we are monitoring the overall macro environment, we entered the second half with a healthy pipeline of opportunity and strong customer engagements."

Revenue in the communications solutions group segment moved up to $913 million from $840 million in the prior-year quarter, reflecting gains of 9% each in commercial communications and aerospace, defense and government. Electronic industrial solutions sales rose 5% to $393 million, buoyed by growth in semiconductor and general electronics, according to the company.