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Keysight Technologies
(NYSE:KEYS)
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Rating:75Outperform
Price Target:
$384.00
▲(20.50% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by solid financial quality (strong margins and free cash flow with manageable leverage) and an upbeat earnings call with raised guidance and strong order momentum. These positives are tempered by expensive valuation (high P/E with no dividend yield provided) and only moderately supportive technicals (positive trend/ MACD but elevated stochastic).
Positive Factors
Recurring software and services mix
A growing software, services, and recurring-revenue mix can improve revenue visibility, customer retention, and margin durability. It also reduces reliance on one-time hardware purchases and strengthens Keysight’s long-term customer relationships.
Negative Factors
Supply constraints may limit revenue conversion
Persistent component constraints could prevent Keysight from converting strong orders and backlog into reported revenue. This may extend delivery cycles, create customer execution risk, and limit the durability of near-term growth even with healthy underlying demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring software and services mix
A growing software, services, and recurring-revenue mix can improve revenue visibility, customer retention, and margin durability. It also reduces reliance on one-time hardware purchases and strengthens Keysight’s long-term customer relationships.
Read all positive factors
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 (KEYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.28B
Dividend YieldN/A
Average Volume (3M)1.46M
Price to Earnings (P/E)44.0
Beta (1Y)1.56
Revenue Growth25.54%
EPS Growth131.92%
CountryUS
Employees16,500
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)7.26
Shares Outstanding170,895,370
10 Day Avg. Volume1,275,009
30 Day Avg. Volume1,461,606
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$422.60Price Target Upside32.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)10.17
Revenue Forecast (FY)$6.89B
Keysight Technologies Business Overview & Revenue Model
Company Description
Keysight Technologies, Inc. specializes in providing advanced electronic design and testing solutions to a diverse array of global industries, spanning commercial communications, networking, aerospace, defense, government, automotive, energy, semi...
How the Company Makes Money
Keysight primarily makes money by selling electronic test-and-measurement solutions to engineers and manufacturers, with revenue generated through a mix of hardware, software, and services. Key revenue streams include: (1) Instrument and system sa...
Keysight Technologies Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 23, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive performance: record orders, revenue, EPS and margins, robust cash generation, accelerated synergy realization, and an upgraded outlook. Key growth engines (AI-related wireline, communications, semiconductor, and defense) showed broad-based strength and pipeline metrics hit all-time highs. Risks flagged by management include non-repeatable tariff-related margin benefits, ongoing incoming parts supply constraints that may limit near-term revenue conversion, and normal quarter-to-quarter variability in government-driven defense spending. Management signaled confidence in sustaining momentum and expects continued strong performance into FY27 while actively addressing supply constraints.Positive Updates
Record top-line and orders growth
Orders of $2.091 billion, up 56% year-over-year (core orders +52% excluding acquisitions/currency). Revenue of $1.846 billion, up 36% year-over-year (core revenue +31%).
Negative Updates
Supply-chain constraints remain a governor
Management noted incoming parts are under high demand and that the supply environment is less flexible than a year ago. Supply limitations are expected to be a nonlinear governor on converting demand to revenue for the next several quarters.
Read all updates
Q3-2026 Updates
Positive
Negative
Record top-line and orders growth
Orders of $2.091 billion, up 56% year-over-year (core orders +52% excluding acquisitions/currency). Revenue of $1.846 billion, up 36% year-over-year (core revenue +31%).
Read all positive updates
Company Guidance
Keysight raised its outlook for Q4 and FY2026: Q4 revenue is guided to $1.930–$1.950 billion (about 37% year‑over‑year growth at the midpoint) and Q4 EPS to $3.34–$3.40 (≈76% YoY growth at the midpoint), based on a weighted diluted share count of ~172 million; on a full‑year basis management expects FY2026 revenue growth of 32% and EPS growth of roughly 60% at the midpoint. They also expect to realize 80%–90% of the $100 million in acquisition cost synergies on a run‑rate basis exiting the year and said cash flow is on track for record operating cash flow in fiscal 2026.Keysight Technologies Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.58B | 5.38B | 4.98B | 5.46B | 5.42B | 4.94B |
| Gross Profit | 4.26B | 3.34B | 3.13B | 3.53B | 3.45B | 3.07B |
| EBITDA | 1.71B | 1.43B | 1.22B | 1.65B | 1.59B | 1.38B |
| Net Income | 1.26B | 846.00M | 614.00M | 1.06B | 1.12B | 894.00M |
Balance Sheet | ||||||
| Total Assets | 11.92B | 11.29B | 9.27B | 8.68B | 8.10B | 7.78B |
| Cash, Cash Equivalents and Short-Term Investments | 2.60B | 1.87B | 1.80B | 2.47B | 2.04B | 2.05B |
| Total Debt | 2.75B | 2.97B | 2.03B | 2.03B | 2.02B | 2.02B |
| Total Liabilities | 5.35B | 5.42B | 4.16B | 4.03B | 3.94B | 4.00B |
| Stockholders Equity | 6.57B | 5.88B | 5.11B | 4.65B | 4.16B | 3.78B |
Cash Flow | ||||||
| Free Cash Flow | 1.57B | 1.28B | 898.00M | 1.21B | 959.00M | 1.15B |
| Operating Cash Flow | 1.60B | 1.41B | 1.05B | 1.41B | 1.14B | 1.32B |
| Investing Cash Flow | -1.77B | -1.73B | -819.00M | -288.00M | -251.00M | -353.00M |
| Financing Cash Flow | -618.00M | 385.00M | -913.00M | -687.00M | -861.00M | -671.00M |
Keysight Technologies Technical Analysis
Negative
318.67
Price Trends
333.33
Negative
334.18
Negative
280.21
Positive
Market Momentum
4.61
Negative
42.95
Neutral
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEYS, the sentiment is Negative. The current price of 318.67 is below the 20-day moving average (MA) of 331.75, below the 50-day MA of 333.33, and above the 200-day MA of 280.21, indicating a neutral trend. The MACD of 4.61 indicates Negative momentum. The RSI at 42.95 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $30.83B | 31.23 | 9.13% | ― | 7.70% | 13.95% | |
75 Outperform | $58.28B | 44.00 | 20.11% | ― | 25.54% | 131.92% | |
72 Outperform | $35.48B | 39.85 | 62.42% | 0.10% | 17.80% | 55.75% | |
70 Outperform | $44.42B | 43.64 | 18.71% | ― | 12.25% | 14.09% | |
70 Outperform | $17.95B | 34.24 | 8.52% | 0.39% | -29.80% | -23.46% | |
66 Neutral | $13.29B | -126.06 | -1.87% | ― | 5.80% | -140.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
KEYS
Keysight Technologies
319.45
160.94
101.53%
FLEX
Flex
113.03
63.93
130.20%
JBL
Jabil
322.77
118.96
58.36%
TDY
Teledyne Technologies
648.63
106.82
19.72%
TRMB
Trimble
59.25
-20.95
-26.12%
FTV
Fortive
58.90
11.07
23.15%
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.