What Keysight Technologies, Inc. told the SEC could break it.

Keysight's California (HQ/production/labs) and Japan production facilities sit in above-average seismic-activity areas; having consolidated manufacturing, it is more exposed to a single-location catastrophe, and it carries no insurance or reserves for earthquake or terrorism interruptions/losses.

“For example, our production facilities, headquarters and laboratories in California and our production facilities in Japan are all located in areas with above-average seismic activity. If any of these facilities were to experience a catastrophic loss, it could disrupt our operations, delay production, shipments and revenue and result in large expenses to repair or replace the facility. Since we have consolidated our manufacturing facilities, we are more likely to experience an interruption to our operations in the event of a catastrophe in any one location.”

New U.S. tariffs from Q2 fiscal 2025 (with significantly higher rates on China and retaliatory measures) cut Keysight's 2025 gross margin by ~1 percentage point and, by raising its customers' component/raw-material costs, threaten to reduce demand for its customers' products — many of Keysight's suppliers, customers, and partners have strong China ties.

“Gross margin decreased 1 percentage point in 2025 compared to 2024, primarily driven by the impact of tariffs and unfavorable mix, partially offset by favorable pricing, higher revenue volume, and lower restructuring costs.”