Keysight Technologies (KEYS) AI Stock Analysis

• Market Cap: $29.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 53.4
• Beta (1Y): 1.63
• Revenue Growth: 4.80%
• EPS Growth: -39.55%
• Country: US
• Employees: 15,400
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.72
• Shares Outstanding: 171,856,250
• 10 Day Avg. Volume: 1,058,678
• 30 Day Avg. Volume: 1,052,970
• 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: 0.95
• Enterprise Value/Revenue: 5.29
• Enterprise Value/Gross Profit: 8.48
• Enterprise Value/Ebitda: 21.31
• 1Y Price Target: $188.17
• Price Target Upside: 10.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $188.00 ▲(10.56% Upside)

Keysight Technologies' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company shows robust revenue and earnings growth, with increased guidance indicating confidence in future performance. However, the high P/E ratio suggests overvaluation, and technical indicators point to a neutral trend, tempering the overall score.

Positive Factors

Revenue Growth

The 11% revenue growth indicates strong demand and effective market penetration, supporting long-term business expansion and stability.

Product Innovation

Innovative product offerings enhance competitive advantage, positioning Keysight as a leader in cutting-edge technology solutions.

Cash Flow Management

Strong cash flow generation supports financial flexibility, enabling strategic investments and shareholder returns.

Negative Factors

Tariff Impact

Increased tariff exposure could pressure margins and require strategic adjustments, impacting profitability and cost management.

Mixed Segment Performance

Uneven growth across segments may indicate challenges in certain markets, potentially affecting overall revenue diversification.

Decline in Net Income

A decline in net income suggests potential inefficiencies or market pressures, which could hinder long-term profitability improvements.

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 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: 170.04
• 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 170.04 is above the 20-day moving average (MA) of 167.89, above the 50-day MA of 168.87, and above the 200-day MA of 161.99, indicating a bullish trend. The MACD of -0.66 indicates Negative momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 79.87 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
FTV	―	$16.63B	22.19	7.36%	0.57%	-0.12%	-11.27%
FLEX	―	$24.13B	28.40	17.67%	―	-3.63%	2.26%
KEYS	―	$29.12B	53.45	9.98%	―	4.80%	-39.55%
TDY	―	$24.67B	30.45	8.11%	―	7.41%	-12.85%
TRMB	―	$19.38B	69.27	5.06%	―	-3.72%	-80.83%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JBL	―	$22.70B	35.86	40.43%	0.15%	3.18%	-46.01%

Keysight Technologies Corporate Events

Keysight Completes Strategic Acquisitions to Boost Growth

On October 20, 2025, Keysight Technologies announced the completion of its acquisitions of Spirent, Optical Solutions Group, and PowerArtist, enhancing its software-centric solutions strategy. These acquisitions, valued at approximately $1.7 billion, are expected to expand Keysight’s design engineering software portfolio and strengthen its position in system-level simulation and emulation, particularly in high-performance and multi-physics workflows. The acquisitions are aligned with long-term growth drivers such as AI, 6G, space and satellite, and automotive, and are anticipated to be accretive to gross and operating margins, as well as EPS within 12 months post-close.

The most recent analyst rating on (KEYS) stock is a Hold with a $172.00 price target. To see the full list of analyst forecasts on Keysight Technologies stock, see the KEYS Stock Forecast page.

Keysight Technologies Advances Acquisition of Spirent Communications

Keysight Technologies has confirmed the satisfaction of all regulatory conditions related to its acquisition of Spirent Communications, a move that is set to enhance its market position in the communications sector. The acquisition, which has received conditional approval from the State Administration for Market Regulation of China, is progressing towards final court approval, marking a significant step in Keysight’s strategic expansion.

Keysight Technologies Secures Extension for Spirent Acquisition

Keysight Technologies has announced the approval of an extension for the Long Stop Date concerning its acquisition of Spirent Communications. This extension, sanctioned by the Court, allows more time for the completion of the acquisition process, which is expected to enhance Keysight’s market position in the communications sector. The acquisition is still subject to certain conditions, including a court sanction, but the company remains optimistic about receiving the necessary clearances soon.

Keysight Extends Acquisition Timeline for Spirent Communications

Keysight Technologies has announced an extension of the Long Stop Date for its acquisition of Spirent Communications, pending regulatory clearance from China’s State Administration for Market Regulation. The acquisition, structured as a scheme of arrangement, is awaiting final approval, and Keysight remains optimistic about receiving the necessary clearance soon, which will further solidify its position in the communications testing market.

Keysight Technologies Extends Deadline for Spirent Acquisition Amid Regulatory Review

Keysight Technologies Inc. has announced an update regarding its acquisition of Spirent Communications plc, which is being executed through a court-sanctioned scheme of arrangement. The final regulatory clearance from China’s State Administration for Market Regulation (SAMR) is pending, and the company is working diligently to secure it. As a precaution, Keysight and Spirent have agreed to extend the Long Stop Date for the acquisition to become unconditional and effective from 29 September 2025 to 27 October 2025. This extension allows more time to obtain the necessary clearance, ensuring the acquisition can proceed smoothly, which is crucial for both companies’ strategic positioning in the market.

Keysight Technologies Reports Strong Earnings and Growth

Keysight Technologies recently held its earnings call, which was marked by a generally positive sentiment. The company reported strong revenue and earnings growth, driven by robust demand across key segments. Despite the positive outlook, there were some concerns about new tariffs and mixed performances in certain segments.

Keysight Technologies Surpasses Q3 Expectations, Raises Outlook

Keysight Technologies Inc., a leader in design, emulation, and test solutions, serves industries such as communications, aerospace, and electronics, helping engineers innovate and deploy technologies efficiently.

Keysight Technologies Advances Spirent Acquisition Amid Regulatory Review

Keysight Technologies has announced an update on its proposed acquisition of Spirent Communications PLC, highlighting ongoing constructive engagement with the State Administration for Market Regulation of China for regulatory clearance. The acquisition, which is expected to be completed by September 29, 2025, is significant for Keysight’s strategic positioning in the communications sector, potentially enhancing its market reach and operational capabilities.