Keysight Technologies (KEYS) AI Stock Analysis

• Market Cap: $36.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 42.7
• 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: 1,055,645
• 30 Day Avg. Volume: 1,340,723
• 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: 0.88
• Enterprise Value/Revenue: 6.06
• Enterprise Value/Gross Profit: 9.76
• Enterprise Value/Ebitda: 22.85
• 1Y Price Target: $220.40
• Price Target Upside: 5.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 8.07
• Revenue Forecast (FY): $6.18B

• Rating: 77 Outperform
• Price Target: $239.00 ▲(14.46% Upside)

Keysight Technologies' strong financial performance and positive earnings call outlook are the primary drivers of its stock score. While technical indicators suggest overbought conditions, the company's strategic acquisitions and robust growth prospects support a favorable long-term view. Valuation concerns slightly temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue and EPS growth highlight strong market demand and effective business strategies, supporting long-term expansion.

Strategic Acquisitions

These acquisitions enhance Keysight's software solutions, aligning with growth areas like AI and 6G, strengthening competitive position.

Cash Flow Management

Strong cash flow supports operational needs and strategic investments, ensuring financial flexibility and shareholder returns.

Negative Factors

Tariff Impacts

Tariff impacts can increase costs and pressure margins, potentially affecting profitability until mitigation strategies are effective.

Dilution from Acquisitions

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

Free Cash Flow Trends

Negative free cash flow growth could limit future investments and operational flexibility if the trend persists.

Keysight Technologies Business Overview & Revenue Model

Company Description

Keysight Technologies (KEYS) is a leading technology company that specializes in electronic design and test solutions. It operates primarily in the communications, aerospace and defense, automotive, energy, and semiconductor sectors. Keysight provides a comprehensive range of products and services, including software and hardware for electronic design automation (EDA), test and measurement solutions, and simulation tools. The company is known for its innovative solutions that help engineers and organizations optimize their designs and improve the performance of their electronic systems.

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 exhibits strong financial health with consistent revenue growth, robust profitability, and effective cash flow management. Despite minor concerns about recent free cash flow trends, the company's financial position is solid, supporting future growth.

Income Statement

Keysight Technologies has demonstrated consistent revenue growth over the years, with a slight dip in the most recent period. The company maintains strong profitability with a gross profit margin consistently above 60% and a net profit margin improving to 15.7% in the latest year. EBIT and EBITDA margins are robust, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a decreasing debt-to-equity ratio, currently at 0.50, indicating prudent leverage management. Return on equity has been strong, although it showed a decline in the latest period. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Operating cash flow remains strong, with a high free cash flow to net income ratio of 1.0, indicating excellent cash generation relative to earnings. However, recent free cash flow growth has been negative, which could be a concern if it persists. Overall, cash flow management appears effective, supporting operational needs and potential investments.

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

Keysight Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 208.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 208.81 is above the 20-day moving average (MA) of 194.72, above the 50-day MA of 181.57, and above the 200-day MA of 164.66, indicating a bullish trend. The MACD of 9.40 indicates Negative momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 84.84 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	77 Outperform	$36.80B	42.75	15.83%	―	7.95%	39.54%
FLEX	74 Outperform	$26.65B	31.34	17.45%	―	0.77%	0.51%
TRMB	74 Outperform	$19.62B	56.68	6.13%	―	-0.86%	-75.37%
FTV	72 Outperform	$17.05B	30.64	7.79%	0.44%	-8.96%	-30.29%
TDY	71 Outperform	$24.24B	30.31	8.11%	―	7.41%	-12.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JBL	61 Neutral	$24.57B	38.82	40.43%	0.14%	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.