Keysight Technologies (KEYS) AI Stock Analysis

• Market Cap: $28.85B
• Dividend Yield: N/A
• Average Volume (3M): 993.28K
• Price to Earnings (P/E): 53.5
• Beta (1Y): 1.56
• Revenue Growth: 4.80%
• EPS Growth: -39.55%
• Country: US
• Employees: 15,400
• Sector: Technology
• Sector Strength: 81
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.72
• Shares Outstanding: 171,856,250
• 10 Day Avg. Volume: 961,154
• 30 Day Avg. Volume: 993,277
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 5.29
• Enterprise Value/Gross Profit: 8.48
• Enterprise Value/Ebitda: 21.31
• 1Y Price Target: $189.80
• Price Target Upside: 12.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $185.00 ▲(9.28% Upside)

Keysight Technologies' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust revenue and earnings growth, along with increased guidance, highlight its potential for future success. However, the high P/E ratio and concerns about tariff impacts and mixed segment performance temper the overall score.

Positive Factors

Acquisition

The anticipated closure of the Spirent acquisition enhances Keysight’s leverage to a cyclical recovery, with operational synergies expected to drive margin improvements.

Earnings

Adjusted EPS of $1.72 was $0.05 above consensus, with adjusted operating margin expanding by 50 basis points year-over-year.

Revenue Growth

Management raised the FY25 framework to approximately 7% year-over-year revenue growth and 13% year-over-year adjusted EPS growth.

Negative Factors

Forecasting Challenges

The company's reluctance to explicitly size tailwinds makes it difficult to model growth.

Market Impact

New tariffs announced will not be fully mitigated until the first half of calendar year 2026, which could impact demand.

Tariffs

The August US reciprocal tariffs represent an additional $75 million annualized gross headwind, totaling $150-175 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 multiple streams, primarily by selling test and measurement equipment, software, and services. The company offers a combination of hardware and software solutions, which allows it to provide integrated systems for a wide range of applications. Key revenue streams include product sales, software licenses, and professional services such as training and support. Additionally, Keysight benefits from recurring revenue through subscription-based software and maintenance contracts. Strategic partnerships with major technology companies and participation in industry-standard organizations also enhance its market presence and contribute to its earnings by expanding its customer base and driving innovation in product offerings.

Keysight Technologies Financial Statement Overview

Summary

Keysight Technologies demonstrates strong financial health with solid profitability and cash flow metrics. While revenue growth is modest, the company maintains a stable balance sheet and effective cash management. Continued focus on improving net income and return on equity will be crucial for sustaining long-term growth.

Income Statement

Keysight Technologies shows strong profitability with a consistent gross profit margin around 62-64% and a net profit margin improving to 14.5% in TTM. Revenue growth is modest at 2.6% in TTM, reflecting stable demand. However, the decline in net income from the previous year indicates potential challenges in cost management or market conditions.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.50, indicating a balanced approach to leverage. Return on equity is healthy at 14.1% in TTM, though it has decreased from previous years, suggesting a need for improved efficiency or profitability. The equity ratio remains stable, reflecting a solid capital structure.

Cash Flow

Cash flow performance is robust with a significant free cash flow growth of 11.8% in TTM. The operating cash flow to net income ratio is strong at 0.91, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also high, underscoring effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.24B	4.98B	5.46B	5.42B	4.94B	4.22B
Gross Profit	3.27B	3.13B	3.53B	3.45B	3.07B	2.53B
EBITDA	1.30B	1.22B	1.65B	1.59B	1.38B	1.17B
Net Income	544.00M	614.00M	1.06B	1.12B	894.00M	627.00M
Balance Sheet
Total Assets	10.65B	9.27B	8.68B	8.10B	7.78B	7.22B
Cash, Cash Equivalents and Short-Term Investments	2.64B	1.80B	2.47B	2.04B	2.05B	1.76B
Total Debt	2.76B	2.03B	2.03B	2.02B	2.02B	1.98B
Total Liabilities	4.98B	4.16B	4.03B	3.94B	4.00B	3.92B
Stockholders Equity	5.67B	5.11B	4.65B	4.16B	3.78B	3.30B
Cash Flow
Free Cash Flow	1.50B	898.00M	1.21B	959.00M	1.15B	899.00M
Operating Cash Flow	1.54B	1.05B	1.41B	1.14B	1.32B	1.02B
Investing Cash Flow	-135.00M	-819.00M	-288.00M	-251.00M	-353.00M	-442.00M
Financing Cash Flow	327.00M	-913.00M	-687.00M	-861.00M	-671.00M	-413.00M

Keysight Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.29
• 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 169.29 is above the 20-day moving average (MA) of 164.92, above the 50-day MA of 164.31, and above the 200-day MA of 161.17, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 87.09 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	79 Outperform	$25.74B	30.10	8.72%	―	6.47%	-1.48%
KEYS	74 Outperform	$28.85B	53.49	9.98%	―	4.80%	-39.55%
FLEX	74 Outperform	$20.89B	24.44	17.67%	―	-3.63%	2.26%
TRMB	72 Outperform	$19.21B	69.41	5.06%	―	-3.72%	-80.83%
FTV	72 Outperform	$16.20B	21.61	7.36%	0.56%	-0.12%	-11.27%
JBL	67 Neutral	$22.55B	40.84	32.41%	0.15%	-6.13%	-53.35%
Sector *	61 Neutral	$35.56B	9.00	-10.49%	1.86%	8.45%	-8.32%

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.