Keysight Technologies (KEYS) AI Stock Analysis

• Market Cap: $33.95B
• Dividend Yield: N/A
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 40.4
• Beta (1Y): 1.74
• Revenue Growth: 7.95%
• EPS Growth: 39.54%
• Country: US
• Employees: 15,400
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.91
• Shares Outstanding: 171,856,250
• 10 Day Avg. Volume: 1,520,380
• 30 Day Avg. Volume: 1,360,570
• PEG Ratio: 0.96
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 5.89
• P/FCF Ratio: 22.46
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 6.06
• Enterprise Value/Gross Profit: 9.76
• Enterprise Value/Ebitda: 22.85
• 1Y Price Target: $217.90
• Price Target Upside: 8.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 7.83
• Revenue Forecast (FY): $5.87B

• Rating: 80 Outperform
• Price Target: $227.00 ▲(12.71% Upside)

Keysight Technologies receives a strong overall score driven by robust financial performance and positive earnings call highlights. While technical indicators suggest caution due to potential overbought conditions, the company's strategic growth initiatives and solid financial health support a positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth and strong order momentum indicate robust demand for Keysight's solutions, supporting long-term financial stability.

Strategic Acquisitions

Strategic acquisitions enhance Keysight's software-centric strategy, potentially increasing revenue streams and market competitiveness.

Cash Flow Management

Strong cash flow supports operational needs and strategic investments, ensuring long-term growth and financial flexibility.

Negative Factors

Tariff Impacts

Tariff impacts could pressure margins and operational costs, potentially affecting profitability if not mitigated effectively.

Dilution from Acquisitions

Short-term earnings dilution from acquisitions may affect profitability, though long-term accretive benefits are anticipated.

Negative Free Cash Flow Growth

Negative free cash flow growth could limit investment capacity and financial flexibility if it persists, impacting long-term strategy.

Keysight Technologies Business Overview & Revenue Model

Company Description

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. Its Communications Solutions Group segment provides electronic design automation (EDA) software; radio frequency and microwave test solutions, and related software; hardware and virtual network test platforms and software applications, including data center, routing and switching, software defined networking, security, and encryption; oscilloscopes, logic and serial protocol analyzers, logic-signal sources, arbitrary waveform generators, and bit error rate testers; and optical modulation analyzers, optical component analyzers, optical power meters, and optical laser source solutions, as well as resells refurbished used Keysight equipment. The company's Electronic Industrial Solutions Group segment offers design tools; design verification tools; and digital multimeters, function generators, frequency counters, data acquisition systems, audio analyzers, LCR meters, thermal imagers, source measure units, ultra-high precision device current analyzers, and test executive software platforms, as well as various power supplies comprising AC/DC modular supplies and electronically programmable loads. This segment also provides printed-circuit-board-assembly testers, integrated circuit parametric testers, and sub-nano-meter positioning sub-assemblies; and test and measurement products and software. The company offers product support, technical support, and training and consulting services. It sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.

How the Company Makes Money

Keysight Technologies generates revenue through multiple streams, primarily by selling its test and measurement equipment, software, and services. The company's core revenue comes from the sale of hardware products such as oscilloscopes, signal analyzers, and network analyzers, which are crucial for various industries in testing and validating electronic designs. In addition to hardware, Keysight offers software solutions for simulation and design automation, which provide recurring revenue through subscriptions and licenses. The company also benefits from maintenance and support services, which generate ongoing income. Significant partnerships with major technology firms, research institutions, and government agencies further enhance Keysight's market position and contribute to its revenue growth. Overall, Keysight's diverse product portfolio and strong presence in various high-demand sectors underpin its financial performance.

Keysight Technologies Financial Statement Overview

Summary

Keysight Technologies demonstrates solid financial health with strong profitability and efficient operations. The company maintains a stable revenue growth trajectory and effective leverage management. While there are minor declines in profit margins and free cash flow growth, the overall financial position remains robust, supporting continued investment and growth opportunities in the hardware, equipment, and parts industry.

Income Statement

Keysight Technologies shows a stable revenue growth rate of 2.52% in the TTM, indicating resilience in a competitive industry. The gross profit margin remains strong at 62.37%, although slightly lower than previous years. The net profit margin has decreased to 10.38%, reflecting some pressure on profitability. EBIT and EBITDA margins are healthy at 20.96% and 24.81%, respectively, suggesting efficient operations despite a slight decline in margins compared to past performance.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.49, indicating prudent leverage management. Return on equity is at 10.15%, showing effective use of equity to generate profits, though it has decreased from previous years. The equity ratio stands at 52.04%, reflecting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Operating cash flow is robust at $1.41 billion, closely matching net income, which indicates strong cash generation capabilities. However, free cash flow has declined by 6.38% in the TTM, highlighting potential challenges in maintaining cash flow growth. The free cash flow to net income ratio is high at 97.54%, suggesting efficient conversion of income into cash flow.

Breakdown	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	―	5.38B	4.98B	5.46B	5.42B
Gross Profit	―	3.34B	3.13B	3.53B	3.45B
EBITDA	―	1.43B	1.22B	1.65B	1.59B
Net Income	―	846.00M	614.00M	1.06B	1.12B
Balance Sheet
Total Assets	―	11.29B	9.27B	8.68B	8.10B
Cash, Cash Equivalents and Short-Term Investments	―	1.87B	1.80B	2.47B	2.04B
Total Debt	―	2.97B	2.03B	2.03B	2.02B
Total Liabilities	―	5.42B	4.16B	4.03B	3.94B
Stockholders Equity	―	5.88B	5.11B	4.65B	4.16B
Cash Flow
Free Cash Flow	―	1.41B	898.00M	1.21B	959.00M
Operating Cash Flow	―	1.41B	1.05B	1.41B	1.14B
Investing Cash Flow	―	-1.73B	-819.00M	-288.00M	-251.00M
Financing Cash Flow	―	385.00M	-913.00M	-687.00M	-861.00M

Keysight Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 201.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEYS, the sentiment is Positive. The current price of 201.4 is above the 20-day moving average (MA) of 183.59, above the 50-day MA of 175.82, and above the 200-day MA of 163.22, indicating a bullish trend. The MACD of 5.91 indicates Negative momentum. The RSI at 71.22 is Negative, neither overbought nor oversold. The STOCH value of 91.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KEYS.

Keysight Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYS	80 Outperform	$33.95B	40.44	15.83%	―	7.95%	39.54%
TRMB	73 Outperform	$19.56B	55.92	6.13%	―	-0.86%	-75.37%
FTV	72 Outperform	$16.76B	30.13	7.79%	0.45%	-8.96%	-30.29%
TDY	71 Outperform	$23.27B	28.72	8.11%	―	7.41%	-12.85%
FLEX	66 Neutral	$21.23B	25.34	17.45%	―	0.77%	0.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JBL	61 Neutral	$22.43B	35.45	40.43%	0.15%	3.18%	-46.01%

Keysight Technologies Corporate Events

Keysight Completes Strategic Acquisitions to Boost Growth

On October 20, 2025, Keysight Technologies announced the completion of its acquisitions of Spirent, Optical Solutions Group, and PowerArtist, enhancing its software-centric solutions strategy. These acquisitions, valued at approximately $1.7 billion, are expected to expand Keysight’s design engineering software portfolio and strengthen its position in system-level simulation and emulation, particularly in high-performance and multi-physics workflows. The acquisitions are aligned with long-term growth drivers such as AI, 6G, space and satellite, and automotive, and are anticipated to be accretive to gross and operating margins, as well as EPS within 12 months post-close.

The most recent analyst rating on (KEYS) stock is a Hold with a $172.00 price target. To see the full list of analyst forecasts on Keysight Technologies stock, see the KEYS Stock Forecast page.

Keysight Technologies Advances Acquisition of Spirent Communications

Keysight Technologies has confirmed the satisfaction of all regulatory conditions related to its acquisition of Spirent Communications, a move that is set to enhance its market position in the communications sector. The acquisition, which has received conditional approval from the State Administration for Market Regulation of China, is progressing towards final court approval, marking a significant step in Keysight’s strategic expansion.

Keysight Technologies Secures Extension for Spirent Acquisition

Keysight Technologies has announced the approval of an extension for the Long Stop Date concerning its acquisition of Spirent Communications. This extension, sanctioned by the Court, allows more time for the completion of the acquisition process, which is expected to enhance Keysight’s market position in the communications sector. The acquisition is still subject to certain conditions, including a court sanction, but the company remains optimistic about receiving the necessary clearances soon.

Keysight Extends Acquisition Timeline for Spirent Communications

Keysight Technologies has announced an extension of the Long Stop Date for its acquisition of Spirent Communications, pending regulatory clearance from China’s State Administration for Market Regulation. The acquisition, structured as a scheme of arrangement, is awaiting final approval, and Keysight remains optimistic about receiving the necessary clearance soon, which will further solidify its position in the communications testing market.

Keysight Technologies Extends Deadline for Spirent Acquisition Amid Regulatory Review

Keysight Technologies Inc. has announced an update regarding its acquisition of Spirent Communications plc, which is being executed through a court-sanctioned scheme of arrangement. The final regulatory clearance from China’s State Administration for Market Regulation (SAMR) is pending, and the company is working diligently to secure it. As a precaution, Keysight and Spirent have agreed to extend the Long Stop Date for the acquisition to become unconditional and effective from 29 September 2025 to 27 October 2025. This extension allows more time to obtain the necessary clearance, ensuring the acquisition can proceed smoothly, which is crucial for both companies’ strategic positioning in the market.

Keysight Technologies Reports Strong Earnings and Growth

Keysight Technologies recently held its earnings call, which was marked by a generally positive sentiment. The company reported strong revenue and earnings growth, driven by robust demand across key segments. Despite the positive outlook, there were some concerns about new tariffs and mixed performances in certain segments.

Keysight Technologies Surpasses Q3 Expectations, Raises Outlook

Keysight Technologies Inc., a leader in design, emulation, and test solutions, serves industries such as communications, aerospace, and electronics, helping engineers innovate and deploy technologies efficiently.

Keysight Technologies Advances Spirent Acquisition Amid Regulatory Review

Keysight Technologies has announced an update on its proposed acquisition of Spirent Communications PLC, highlighting ongoing constructive engagement with the State Administration for Market Regulation of China for regulatory clearance. The acquisition, which is expected to be completed by September 29, 2025, is significant for Keysight’s strategic positioning in the communications sector, potentially enhancing its market reach and operational capabilities.