Keysight Technologies (KEYS) AI Stock Analysis

• Market Cap: $41.14B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 49.0
• Beta (1Y): 1.66
• Revenue Growth: 7.95%
• EPS Growth: 39.54%
• Country: US
• Employees: 15,400
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.17
• Shares Outstanding: 171,517,760
• 10 Day Avg. Volume: 1,050,655
• 30 Day Avg. Volume: 1,042,598
• PEG Ratio: 0.96
• Price to Book (P/B): 5.39
• Price to Sales (P/S): 5.89
• P/FCF Ratio: 24.71
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 10.59
• Enterprise Value/Gross Profit: 17.16
• Enterprise Value/Ebitda: 37.89
• 1Y Price Target: $284.70
• Price Target Upside: 16.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $272.00 ▲(11.02% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is driven mainly by strong cash generation and a solid balance sheet, reinforced by a positive earnings-call outlook and guidance. Technicals are supportive but show overbought risk, while a high P/E and lack of dividend support weigh on valuation.

Positive Factors

High Profitability & Margins

Sustained gross margins above 60% and a mid-teens net margin indicate strong pricing power and efficient cost structure. These margins support durable operating leverage, fund R&D and capex, and help the business sustain profitability across technology cycles and product refresh waves.

Strong Cash Generation

A record $1.3B free cash flow, while funding R&D and three acquisitions, enabled $375M in buybacks. Robust cash conversion underpins self-funded growth, supports disciplined capital allocation, and provides flexibility for M&A or shareholder returns over the medium term.

Strategic Acquisitions & Software Shift

Acquisitions expand software-centric and optical portfolios, increasing recurring revenue and cross-sell potential. Adding ~$375M of revenue and capabilities in AI, 6G and semiconductor testing strengthens long-term competitive positioning and diversifies revenue streams.

Negative Factors

Recent Free Cash Flow Growth Decline

Although absolute free cash flow is high, recent negative FCF growth signals potential timing, working capital, or margin pressures. If the decline persists it could constrain reinvestment, M&A funding cadence, or shareholder returns and warrants monitoring over coming quarters.

Acquisition-Related EPS Dilution

Near-term EPS dilution from acquisitions reduces immediate earnings accretion and increases the execution burden to achieve synergies. Integration and realization risk means shareholder returns depend on successful cross-selling and cost integration over the subsequent 12+ month horizon.

Tariff & Geopolitical Exposure

Tariff-driven cost and supply-chain disruption is a structural risk for hardware firms with global manufacturing and customers. Mitigation can raise operating complexity or costs and may compress margins or slow order cycles if trade tensions persist beyond near-term remediation.

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

Strong free cash flow generation and solid balance sheet quality support the business, with healthy profitability. The key offset is the sharp TTM revenue decline, which raises risk of continued demand/cycle pressure despite resilient margins.

Income Statement

Profitability remains strong in TTM (Trailing-Twelve-Months), with healthy gross and operating margins and an improved net margin versus the latest annual period. However, the revenue trajectory is the key concern: TTM sales are down sharply (about -24%), and earnings are below prior peak levels, signaling meaningful cyclical or demand pressure despite resilient margins.

Balance Sheet

The balance sheet looks solid with moderate leverage (debt at under half of equity in TTM (Trailing-Twelve-Months)) and a large equity base supporting the asset footprint. Returns on equity are still healthy but have moderated from earlier highs, and total debt remains material, which can limit flexibility if the current revenue downturn persists.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) free cash flow is very close to net income and has grown year over year, indicating strong cash conversion and disciplined spending. A watch item is that operating cash flow covers a smaller share of EBITDA (sub-1x), suggesting some working-capital or timing headwinds even as overall free cash flow remains robust.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	4.08B	5.38B	4.98B	5.46B	5.42B	4.94B
Gross Profit	2.52B	3.34B	3.13B	3.53B	3.45B	3.07B
EBITDA	1.14B	1.43B	1.22B	1.65B	1.59B	1.38B
Net Income	958.00M	846.00M	614.00M	1.06B	1.12B	894.00M
Balance Sheet
Total Assets	11.48B	11.29B	9.27B	8.68B	8.10B	7.78B
Cash, Cash Equivalents and Short-Term Investments	2.18B	1.87B	1.80B	2.47B	2.04B	2.05B
Total Debt	2.77B	2.97B	2.03B	2.03B	2.02B	2.02B
Total Liabilities	5.28B	5.42B	4.16B	4.03B	3.94B	4.00B
Stockholders Equity	6.21B	5.88B	5.11B	4.65B	4.16B	3.78B
Cash Flow
Free Cash Flow	1.47B	1.28B	898.00M	1.21B	959.00M	1.15B
Operating Cash Flow	1.47B	1.41B	1.05B	1.41B	1.14B	1.32B
Investing Cash Flow	-1.74B	-1.73B	-819.00M	-288.00M	-251.00M	-353.00M
Financing Cash Flow	360.00M	385.00M	-913.00M	-687.00M	-861.00M	-671.00M

Keysight Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 245.00
• 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 245 is above the 20-day moving average (MA) of 229.50, above the 50-day MA of 216.87, and above the 200-day MA of 181.30, indicating a bullish trend. The MACD of 7.85 indicates Negative momentum. The RSI at 70.77 is Negative, neither overbought nor oversold. The STOCH value of 81.08 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
TDY	77 Outperform	$31.11B	35.25	8.92%	―	7.41%	-12.85%
JBL	73 Outperform	$27.51B	40.53	47.87%	0.14%	13.18%	-38.37%
KEYS	72 Outperform	$41.14B	49.04	15.82%	―	7.95%	39.54%
FLEX	72 Outperform	$24.20B	29.15	16.85%	―	0.77%	0.51%
FTV	67 Neutral	$18.53B	33.72	7.78%	0.43%	-8.96%	-30.29%
TRMB	63 Neutral	$15.92B	38.36	7.32%	―	-0.86%	-75.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%