Keysight Technologies (KEYS) AI Stock Analysis

• Market Cap: $27.23B
• Dividend Yield: N/A
• Average Volume (3M): 912.95K
• Price to Earnings (P/E): 37.2
• Beta (1Y): 1.63
• Revenue Growth: -1.16%
• EPS Growth: -7.04%
• Country: US
• Employees: 15,400
• Sector: Technology
• Sector Strength: 79
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.70
• Shares Outstanding: 172,108,860
• 10 Day Avg. Volume: 681,230
• 30 Day Avg. Volume: 912,946
• PEG Ratio: 0.96
• Price to Book (P/B): 7.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.69
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 6.00
• Enterprise Value/Ebitda: 3.90
• 1Y Price Target: $184.25
• Price Target Upside: 16.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: $185.00 ▲(16.95%Upside)

Keysight Technologies' overall stock score is driven by its strong financial performance and positive earnings call results, indicating resilience and strategic growth initiatives. Technical analysis suggests stable market positioning, but high valuation remains a concern.

Positive Factors

Acquisition

The anticipated Spirent acquisition is expected to enhance Keysight’s leverage to market recovery, with operational synergies driving margin improvements.

Earnings

Management raised its FY25 revenue growth forecast to ~6% and adjusted EPS growth to >10%, suggesting confidence in future performance.

Order Growth

Keysight saw core orders grow +8% y/y in 2QF25 despite tariff headwinds, indicating resilience in demand.

Negative Factors

Earnings Guidance

The 3QF25 adjusted EPS guidance was below prior consensus, reflecting challenges due to tariff expenses.

Tariffs

Tariffs have created an unexpected cost headwind for Keysight, with an annualized impact estimated at $75-$100 million.

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 the sale of its electronic measurement instruments and related software and services. The company's primary revenue streams include the sale of hardware products like oscilloscopes, signal analyzers, and network analyzers, which are essential for testing and validating electronic components and systems. Additionally, Keysight offers software solutions that enhance the functionality and performance of its hardware products, allowing customers to achieve greater precision and efficiency in their testing processes. Service revenue also plays a significant role, as Keysight provides calibration, repair, and consulting services to ensure optimal performance and compliance with industry standards. The company also benefits from strategic partnerships and collaborations with other industry players, which help expand its market reach and drive technological advancements.

Keysight Technologies Financial Statement Overview

Summary

Keysight Technologies displays strong financial health with solid profitability and cash flow metrics. The company shows a robust gross profit margin and efficient cash management, though increasing debt levels warrant monitoring.

Income Statement

Keysight Technologies shows strong financial performance with a gross profit margin of 62.47% and net profit margin of 14.53% for TTM (Trailing-Twelve-Months). Revenue growth is positive, with a TTM growth of 2.59% from the previous year. EBITDA margin is robust at 26.04%, indicating efficient operating performance. However, the EBIT margin slightly declined to 16.84%, which might warrant monitoring.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.50, indicating manageable leverage. The return on equity (ROE) is strong at 13.55% for TTM, showcasing effective equity utilization. The equity ratio stands at 51.99%, reflecting a solid capital structure. However, the increase in total debt over the past periods may pose potential risk if not managed properly.

Cash Flow

Keysight Technologies maintains healthy cash flow with a free cash flow to net income ratio of 1.81 for TTM, indicating strong cash generation relative to profit. The operating cash flow to net income ratio is 1.99, further emphasizing robust cash management. Free cash flow grew by 49.89% year-over-year, signaling strong liquidity and operational efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.11B	4.98B	5.46B	5.42B	4.94B	4.22B
	Gross Profit
3.19B	3.13B	3.53B	3.45B	3.07B	2.53B
	EBIT
860.00M	833.00M	1.36B	1.33B	1.08B	765.00M
	EBITDA
1.33B	1.21B	1.65B	1.58B	1.38B	1.16B
	Net Income Common Stockholders
742.00M	614.00M	1.06B	1.12B	894.00M	627.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.12B	1.80B	2.47B	2.04B	2.05B	1.76B
	Total Assets
10.54B	9.27B	8.68B	8.10B	7.78B	7.22B
	Total Debt
2.77B	2.03B	2.03B	2.02B	2.02B	1.98B
	Net Debt
-353.00M	234.00M	-446.00M	-24.00M	-29.00M	225.00M
	Total Liabilities
5.06B	4.16B	4.03B	3.94B	4.00B	3.92B
	Stockholders Equity
5.48B	5.11B	4.65B	4.16B	3.78B	3.30B
Cash Flow		Free Cash Flow
1.35B	898.00M	1.21B	959.00M	1.15B	899.00M
	Operating Cash Flow
1.48B	1.05B	1.41B	1.14B	1.32B	1.02B
	Investing Cash Flow
-254.00M	-819.00M	-288.00M	-251.00M	-353.00M	-442.00M
	Financing Cash Flow
223.00M	-913.00M	-687.00M	-861.00M	-671.00M	-413.00M

Keysight Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 158.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEYS, the sentiment is Neutral. The current price of 158.19 is below the 20-day moving average (MA) of 161.13, above the 50-day MA of 150.46, and below the 200-day MA of 158.40, indicating a neutral trend. The MACD of 2.05 indicates Positive momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 56.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KEYS.

Keysight Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYS	78 Outperform	$27.23B	37.15	14.30%	―	-1.16%	-7.04%
TDY	77 Outperform	$22.84B	27.87	8.61%	―	2.98%	-5.64%
TRMB	77 Outperform	$16.96B	11.57	31.00%	―	-6.93%	537.94%
FTV	74 Outperform	$23.60B	30.48	7.70%	0.46%	0.85%	-10.01%
MKSI	74 Outperform	$5.99B	26.63	9.50%	0.98%	-1.14%	―
COHR	66 Neutral	$12.03B	―	1.25%	―	21.68%	92.07%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%

Keysight Technologies Corporate Events

Keysight Technologies Announces Leadership Transition

On May 26, 2025, Keysight Technologies announced that Soon Chai Gooi, Senior Vice President of Order Fulfillment and Digital Operations, will step down and retire by the end of October 2025. Ingrid Estrada will succeed him as Senior Vice President, Chief Supply Chain and Operations, transitioning from her current role as Chief People and Administrative Officer.

The most recent analyst rating on (KEYS) stock is a Sell with a $165.00 price target. To see the full list of analyst forecasts on Keysight Technologies stock, see the KEYS Stock Forecast page.