Keysight Technologies (KEYS) AI Stock Analysis

• Market Cap: $28.12B
• Dividend Yield: N/A
• Average Volume (3M): 806.93K
• Price to Earnings (P/E): 38.6
• Beta (1Y): 1.63
• Revenue Growth: -1.16%
• EPS Growth: -7.04%
• Country: US
• Employees: 15,400
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 172,108,860
• 10 Day Avg. Volume: 867,883
• 30 Day Avg. Volume: 806,930
• 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: 0.88
• Enterprise Value/Revenue: 4.86
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: 18.65
• 1Y Price Target: $189.25
• Price Target Upside: 15.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 79 Outperform
• Price Target: $188.00 ▲(14.33% Upside)

Keysight Technologies receives a strong overall score of 79, driven primarily by its solid financial performance and positive earnings call. The company's robust profitability and cash flow metrics, along with exceeding revenue and EPS guidance, are significant strengths. However, the high P/E ratio and absence of a dividend yield slightly temper the valuation outlook. Technical indicators suggest a neutral to slightly positive trend, supporting the overall favorable assessment.

Positive Factors

Acquisitions

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.

Market Demand

Commercial communications orders have grown double digits, with robust demand in wireline.

Negative Factors

EPS Concerns

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

Growth Challenges

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

Tariff Impact

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 (KEYS) is a leading technology company that specializes in electronic measurement and testing solutions. Operating primarily in the fields of electronic design automation, test and measurement equipment, and software solutions, Keysight serves a diverse range of industries, including telecommunications, aerospace and defense, automotive, and consumer electronics. The company's core products include oscilloscopes, signal analyzers, network testers, and software that enable engineers to design, simulate, and validate their electronic systems.

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 solid financial health with strong profitability and cash flow metrics. The company shows a robust gross profit margin of 62.47% and a net profit margin of 14.53%. Revenue growth is positive, and the company maintains a healthy cash flow with a free cash flow to net income ratio of 1.81. However, the slight decline in EBIT margin and rising 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
EBITDA	1.33B	1.21B	1.65B	1.58B	1.38B	1.16B
Net Income	742.00M	614.00M	1.06B	1.12B	894.00M	627.00M
Balance Sheet
Total Assets	10.54B	9.27B	8.68B	8.10B	7.78B	7.22B
Cash, Cash Equivalents and Short-Term Investments	3.12B	1.80B	2.47B	2.04B	2.05B	1.76B
Total Debt	2.77B	2.03B	2.03B	2.02B	2.02B	1.98B
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: Positive
• Last Price: 164.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 164.43 is below the 20-day moving average (MA) of 164.51, above the 50-day MA of 163.52, and above the 200-day MA of 160.60, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 43.82 is Neutral, 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	79 Outperform	$28.12B	38.62	14.30%	―	-1.16%	-7.04%
TDY	79 Outperform	$25.25B	29.67	8.72%	―	6.47%	-1.48%
MKSI	75 Outperform	$6.73B	25.47	11.12%	0.87%	4.47%	2887.37%
TRMB	72 Outperform	$19.57B	70.22	5.06%	―	-3.72%	-80.83%
FTV	66 Neutral	$16.29B	21.74	7.36%	0.47%	-0.12%	-11.27%
Sector *	61 Neutral	$36.02B	6.70	-7.27%	1.99%	8.63%	-7.76%
COHR	60 Neutral	$14.52B	―	0.63%	―	23.42%	71.17%

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.