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Keysight Technologies
(NYSE:KEYS)
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Rating:76Outperform
Price Target:
$389.00
▲(16.35% Upside)
Action:Reiterated
Date:05/20/26
KEYS scores well primarily due to strong financial performance (high margins, solid free cash flow, manageable leverage) and an upbeat earnings call featuring raised FY2026 growth expectations and strong AI/wireline momentum. The score is tempered by a premium valuation (P/E ~33) and a mixed near-term technical picture that looks more like consolidation than strong upside momentum.
Positive Factors
Strong cash generation & manageable leverage
Consistent FCF roughly matching net income and strong operating cash flow provide durable internal funding for R&D, manufacturing scale, share repurchases and debt reduction. Manageable leverage (debt/equity ~0.44) cushions downside and preserves financial flexibility over the medium term.
Negative Factors
Uncertainty around sustainability of elevated incremental margins
Elevated incremental margins in the recent period are tied to exceptional top-line acceleration; if growth normalizes, margins may revert toward historical levels. That introduces earnings volatility risk and complicates long-term margin and cash flow forecasting for planning and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & manageable leverage
Consistent FCF roughly matching net income and strong operating cash flow provide durable internal funding for R&D, manufacturing scale, share repurchases and debt reduction. Manageable leverage (debt/equity ~0.44) cushions downside and preserves financial flexibility over the medium term.
Read all positive factors
Keysight Technologies Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes sales performance across various business units, showing which areas are driving growth and contributing most to the top line.
Analyzes sales performance across various business units, showing which areas are driving growth and contributing most to the top line.
Data provided by:
The Fly
The FlyKeysight Technologies (KEYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$53.64B
Dividend YieldN/A
Average Volume (3M)1.75M
Price to Earnings (P/E)51.6
Beta (1Y)1.63
Revenue Growth19.19%
EPS Growth42.75%
CountryUS
Employees15,400
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)6.08
Shares Outstanding170,895,370
10 Day Avg. Volume1,414,293
30 Day Avg. Volume1,751,683
Financial Highlights & Ratios
PEG Ratio0.96
Price to Book (P/B)5.39
Price to Sales (P/S)5.89
P/FCF Ratio24.71
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue9.90
Enterprise Value/Gross Profit15.56
Enterprise Value/Ebitda41.87
Forecast
1Y Price Target
$395.45Price Target Upside18.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)10.18
Revenue Forecast (FY)$6.89B
Keysight Technologies Business Overview & Revenue Model
Company Description
Keysight Technologies, Inc. specializes in providing advanced electronic design and testing solutions to a diverse array of global industries, spanning commercial communications, networking, aerospace, defense, government, automotive, energy, semi...
How the Company Makes Money
Keysight makes money primarily by selling electronic test and measurement products and associated software and services to enterprises and government customers.
Key revenue streams include:
- Test and measurement instruments and systems: Sales of...
Keysight Technologies Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance with record orders, revenue, EPS, and free cash flow coupled with raised full-year revenue expectations and robust AI and wireline momentum. Management highlighted broad-based demand across communications, semiconductors, aerospace/defense and industrial markets, a strong funnel, and progress on acquisition synergies. The main negatives were tariff-related one-time accounting impacts complicating comparability, a modest sequential Q3 midpoint dip, higher near-term CapEx to support ramps, and questions about the sustainability of elevated incremental margins and the timing of acquisition revenue pickup.Positive Updates
Record Quarter & First Half
Keysight reported its best quarter in company history and a record first half: Q2 orders $2.05B (up 56% reported; core +48%), Q2 revenue $1.72B (up 31% reported; core +24%) and reported EPS $2.87 (Satish noted EPS growth of 69%).
Negative Updates
Tariff-Related One-Time Adjustments
Q2 recognized impacts from U.S. Supreme Court decision validating IEBA tariffs: a $40M reduction in reported revenue and a $97M reduction in costs and expenses, complicating quarter comparability and requiring adjusted metrics to reflect underlying performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter & First Half
Keysight reported its best quarter in company history and a record first half: Q2 orders $2.05B (up 56% reported; core +48%), Q2 revenue $1.72B (up 31% reported; core +24%) and reported EPS $2.87 (Satish noted EPS growth of 69%).
Read all positive updates
Company Guidance
Keysight guided Q3 FY2026 revenue of $1.73–$1.75 billion (midpoint $1.74B, ~29% year‑over‑year growth at the midpoint) and Q3 EPS of $2.43–$2.49 (midpoint $2.46, ~43% YoY growth at the midpoint) based on a weighted diluted share count of ~173 million shares; for the full year they now expect revenue growth in the high‑20s percent range with a historically typical sequential revenue increase into Q4, increased FY2026 capital expenditures of $200 million, about $375 million of FY2026 revenue contribution from recent acquisitions, more than $100 million of cost synergies and operational efficiencies (with roughly 80% of those synergies expected on a run‑rate basis exiting the fiscal year), and said acquisition integrations remain on track.Keysight Technologies Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.09B | 5.38B | 4.98B | 5.46B | 5.42B | 4.94B |
| Gross Profit | 3.88B | 3.34B | 3.13B | 3.53B | 3.45B | 3.07B |
| EBITDA | 1.44B | 1.43B | 1.22B | 1.65B | 1.59B | 1.38B |
| Net Income | 1.05B | 846.00M | 614.00M | 1.06B | 1.12B | 894.00M |
Balance Sheet | ||||||
| Total Assets | 11.74B | 11.29B | 9.27B | 8.68B | 8.10B | 7.78B |
| Cash, Cash Equivalents and Short-Term Investments | 2.41B | 1.87B | 1.80B | 2.47B | 2.04B | 2.05B |
| Total Debt | 2.76B | 2.97B | 2.03B | 2.03B | 2.02B | 2.02B |
| Total Liabilities | 5.41B | 5.42B | 4.16B | 4.03B | 3.94B | 4.00B |
| Stockholders Equity | 6.33B | 5.88B | 5.11B | 4.65B | 4.16B | 3.78B |
Cash Flow | ||||||
| Free Cash Flow | 1.45B | 1.28B | 898.00M | 1.21B | 959.00M | 1.15B |
| Operating Cash Flow | 1.49B | 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 | -458.00M | 385.00M | -913.00M | -687.00M | -861.00M | -671.00M |
Keysight Technologies Technical Analysis
Negative
334.34
Price Trends
346.58
Negative
316.91
Negative
254.38
Positive
Market Momentum
-2.16
Positive
39.57
Neutral
23.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEYS, the sentiment is Negative. The current price of 334.34 is below the 20-day moving average (MA) of 343.89, below the 50-day MA of 346.58, and above the 200-day MA of 254.38, indicating a neutral trend. The MACD of -2.16 indicates Positive momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KEYS.
Keysight Technologies Risk Analysis
Keysight Technologies disclosed 38 risk factors in its most recent earnings report. Keysight Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Keysight Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $30.21B | 32.80 | 8.85% | ― | 7.74% | 12.76% | |
76 Outperform | $53.64B | 51.62 | 17.44% | ― | 19.19% | 42.75% | |
75 Outperform | $50.14B | 58.74 | 17.26% | ― | 8.14% | 10.64% | |
72 Outperform | $35.76B | 42.14 | 62.42% | 0.14% | 17.80% | 55.75% | |
70 Neutral | $11.46B | 25.27 | 7.95% | ― | 3.25% | -68.85% | |
64 Neutral | $19.10B | 37.07 | 7.39% | 0.43% | -23.36% | -26.77% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
KEYS
Keysight Technologies
313.86
146.81
87.88%
FLEX
Flex
136.86
85.16
164.76%
JBL
Jabil
341.30
115.59
51.21%
TDY
Teledyne Technologies
652.08
134.12
25.89%
TRMB
Trimble
53.04
-25.84
-32.75%
FTV
Fortive
62.65
9.83
18.62%
Keysight Technologies Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Keysight Technologies Establishes New $750 Million Credit Facility
Positive
Apr 23, 2026
On April 21, 2026, Keysight Technologies entered into an amended and restated credit agreement that replaces its July 30, 2021 credit facility and establishes a new $750 million five-year unsecured revolving credit facility expiring April 21, 2031...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Keysight Shareholders Approve Governance Changes at Annual Meeting
Positive
Mar 24, 2026
On March 19, 2026, Keysight Technologies held its Annual Meeting of Stockholders, with approximately 91% of the 171.5 million eligible common shares represented, and shareholders elected three directors, ratified PricewaterhouseCoopers LLP as inde...
Executive/Board Changes
Keysight Technologies Announces Retirement of Senior Services Executive
Neutral
Mar 13, 2026
Keysight Technologies, Inc. said that John Page, senior vice president of Global Services, announced on March 12, 2026, that he intends to step down and retire before the end of the company’s fiscal year on October 31, 2026. Page, who has se...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.