Keysight Technologies (KEYS)
NYSE:KEYS
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Keysight Technologies
(NYSE:KEYS)
Select Model
Select Model
Rating:74Outperform
Price Target:
$324.00
▲(1.78% Upside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by strong cash flow, a solid balance sheet, and a very constructive earnings call with upbeat near-term guidance and accelerating orders. This is tempered by the financial-statement risk of a sharp TTM revenue decline and a premium P/E valuation that increases execution sensitivity.
Positive Factors
Cash Generation
Sustained free cash flow near net income indicates excellent cash conversion and disciplined spending. That durable cash generation funds R&D, capital allocation (buybacks/acquisitions), and capital expenditure, providing financial flexibility to weather cycles and support strategic investments.
Negative Factors
Recent Revenue Contraction
A ~24% TTM revenue decline is a material structural headwind that weakens visibility into sustained earnings power. Even with resilient margins, a large revenue drop increases sensitivity to demand recovery timing and puts pressure on return profiles if top-line stabilization lags.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained free cash flow near net income indicates excellent cash conversion and disciplined spending. That durable cash generation funds R&D, capital allocation (buybacks/acquisitions), and capital expenditure, providing financial flexibility to weather cycles and support strategic investments.
Read all positive factors
Keysight Technologies (KEYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.59B
Dividend YieldN/A
Average Volume (3M)1.77M
Price to Earnings (P/E)33.1
Beta (1Y)1.62
Revenue Growth7.95%
EPS Growth39.54%
CountryUS
Employees15,400
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.17
Shares Outstanding171,502,500
10 Day Avg. Volume1,028,565
30 Day Avg. Volume1,768,424
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 Cap1.01
Enterprise Value/Revenue9.76
Enterprise Value/Gross Profit15.77
Enterprise Value/Ebitda39.42
Forecast
1Y Price Target
$311.82Price Target Upside-2.05% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)8.88
Revenue Forecast (FY)$6.62B
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,...
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 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 Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call presented strong, broad-based operational and financial outperformance: record revenue, orders, margin expansion, robust cash flow, and upbeat near-term guidance driven by secular tailwinds in AI, wireline, optical, and defense. Risks cited were primarily execution and timing related to recent acquisitions (near-term margin dilution and ERP migration), some regulatory (tariff) uncertainty not yet modeled, and limited visibility beyond a couple of quarters. On balance, the positives (revenue, orders, margins, cash flow, market tailwinds and confident guidance) substantially outweigh the manageable lowlights.Positive Updates
Record Q1 Revenue and EPS
Total company revenue of $1.600 billion, up 23% year-over-year on a reported basis (core revenue +14%). Net income of $376 million and diluted EPS of $2.17, both up 19% year-over-year. Revenue and EPS exceeded the high end of guidance for the quarter.
Negative Updates
Acquisitions Dilutive to Near-Term Margins
Recent acquisitions added ~8 points to reported revenue and have lower operating margins, making them dilutive to consolidated operating margin in the first year; expected >$100M in synergies are heavily weighted to late 2026 (ERP migration timeline).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Q1 Revenue and EPS
Total company revenue of $1.600 billion, up 23% year-over-year on a reported basis (core revenue +14%). Net income of $376 million and diluted EPS of $2.17, both up 19% year-over-year. Revenue and EPS exceeded the high end of guidance for the quarter.
Read all positive updates
Company Guidance
Keysight guided Q2 revenue of $1.690–$1.710 billion (about 30% year‑over‑year growth at the midpoint) and Q2 diluted EPS of $2.27–$2.33 (about 35% YoY at the midpoint) based on a weighted diluted share count of ~173 million, reiterated an expectation of $375 million of acquisition‑related revenue for fiscal 2026 and a >$100 million run‑rate synergy target (realization weighted to late 2026), and said its base case for fiscal 2026 is total annual revenue and earnings growth just above 20%; the guidance does not contemplate any impact from the recent Supreme Court tariff decision. For context, Q1 results that underpin the outlook were: revenue $1.600 billion (+23% reported, +14% core), orders $1.645 billion (+30% reported, +22% core), gross margin 66.7% (+90 bps), operating margin 27.4% (+20 bps), net income $376 million, EPS $2.17 (+19%), cash ~$2.2 billion, and free cash flow $407 million.Keysight Technologies Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.68B | 5.38B | 4.98B | 5.46B | 5.42B | 4.94B |
| Gross Profit | 3.51B | 3.34B | 3.13B | 3.53B | 3.45B | 3.07B |
| EBITDA | 1.41B | 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 | 2.96B | 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 | 1.43B | 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
Positive
318.33
Price Trends
267.83
Positive
234.81
Positive
201.49
Positive
Market Momentum
8.13
Negative
67.70
Neutral
88.49
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 318.33 is above the 20-day moving average (MA) of 287.88, above the 50-day MA of 267.83, and above the 200-day MA of 201.49, indicating a bullish trend. The MACD of 8.13 indicates Negative momentum. The RSI at 67.70 is Neutral, neither overbought nor oversold. The STOCH value of 88.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $30.58B | 27.35 | 8.65% | ― | 7.41% | -12.85% | |
74 Outperform | $54.59B | 33.10 | 16.50% | ― | 7.95% | 39.54% | |
74 Outperform | $26.91B | 23.76 | 16.83% | ― | 0.77% | 0.51% | |
69 Neutral | $30.32B | 31.64 | 58.99% | 0.14% | 13.18% | -38.37% | |
63 Neutral | $15.61B | 43.86 | 7.46% | ― | -0.86% | -75.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $18.28B | 30.16 | 6.90% | 0.43% | -8.96% | -30.29% |
* Technology Sector Average
KEYS
Keysight Technologies
318.33
184.92
138.61%
FLEX
Flex
73.19
43.77
148.78%
JBL
Jabil
287.14
155.31
117.80%
TDY
Teledyne Technologies
660.31
201.38
43.88%
TRMB
Trimble
66.74
8.70
14.99%
FTV
Fortive
59.38
11.56
24.17%
Keysight Technologies Corporate Events
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.