Keysight Technologies (KEYS)
Market Price (5/4/2026): $352.45 | Market Cap: $60.6 BilSector: Information Technology | Industry: Electronic Equipment & Instruments
Keysight Technologies (KEYS)
Market Price (5/4/2026): $352.45Market Cap: $60.6 BilSector: Information TechnologyIndustry: Electronic Equipment & Instruments
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 24% Stock buyback supportStock Buyback 3Y Total is 1.5 Bil Low stock price volatilityVol 12M is 38% Megatrend and thematic driversMegatrends include 5G & Advanced Connectivity, Artificial Intelligence, and Electric Vehicles & Autonomous Driving. Themes include Telecom Infrastructure, Show more. | Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% | Stock price has recently run up significantly12M Rtn12 month market price return is 137% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 91% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.5% Key risksKEYS key risks include [1] unpredictable demand and revenue volatility stemming from its dependence on cyclical end markets, Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 24% |
| Stock buyback supportStock Buyback 3Y Total is 1.5 Bil |
| Low stock price volatilityVol 12M is 38% |
| Megatrend and thematic driversMegatrends include 5G & Advanced Connectivity, Artificial Intelligence, and Electric Vehicles & Autonomous Driving. Themes include Telecom Infrastructure, Show more. |
| Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% |
| Stock price has recently run up significantly12M Rtn12 month market price return is 137% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 91% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.5% |
| Key risksKEYS key risks include [1] unpredictable demand and revenue volatility stemming from its dependence on cyclical end markets, Show more. |
Qualitative Assessment
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1. Exceptional Fiscal First Quarter 2026 Financial Performance. Keysight Technologies reported strong first fiscal quarter 2026 results on February 23, 2026, exceeding analyst expectations for both earnings and revenue for the quarter ended January 31, 2026. The company posted an adjusted EPS of $2.17, surpassing the consensus estimate of $2.00 by $0.17. Additionally, revenue reached $1.60 billion, a 23.3% year-over-year increase, and was higher than the $1.54 billion consensus estimate. This solid beat signaled strong operational execution and contributed significantly to investor confidence.
2. Upbeat Fiscal Year 2026 Guidance and Robust Order Growth. Following the impressive Q1 results, Keysight's management provided an optimistic outlook by raising its fiscal year 2026 guidance. The company increased its adjusted EPS growth framework to more than 20% year-over-year, up from a previous projection of over 10%, implying an adjusted EPS of at least $8.59 for FY2026, which exceeded the $8.11 consensus. This positive guidance was underpinned by core orders growing 22% year-over-year in the first quarter, indicating strong future demand and revenue visibility.
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Stock Movement Drivers
Fundamental Drivers
The 62.9% change in KEYS stock from 1/31/2026 to 5/3/2026 was primarily driven by a 43.9% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 5032026 | Change |
|---|---|---|---|
| Stock Price ($) | 216.33 | 352.41 | 62.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,375 | 5,677 | 5.6% |
| Net Income Margin (%) | 15.8% | 16.9% | 7.2% |
| P/E Multiple | 43.8 | 63.0 | 43.9% |
| Shares Outstanding (Mil) | 172 | 172 | 0.0% |
| Cumulative Contribution | 62.9% |
Market Drivers
1/31/2026 to 5/3/2026| Return | Correlation | |
|---|---|---|
| KEYS | 62.9% | |
| Market (SPY) | 3.6% | 47.1% |
| Sector (XLK) | 12.6% | 45.2% |
Fundamental Drivers
The 92.6% change in KEYS stock from 10/31/2025 to 5/3/2026 was primarily driven by a 63.3% change in the company's Net Income Margin (%).| (LTM values as of) | 10312025 | 5032026 | Change |
|---|---|---|---|
| Stock Price ($) | 182.96 | 352.41 | 92.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,243 | 5,677 | 8.3% |
| Net Income Margin (%) | 10.4% | 16.9% | 63.3% |
| P/E Multiple | 57.8 | 63.0 | 8.9% |
| Shares Outstanding (Mil) | 172 | 172 | 0.0% |
| Cumulative Contribution | 92.6% |
Market Drivers
10/31/2025 to 5/3/2026| Return | Correlation | |
|---|---|---|
| KEYS | 92.6% | |
| Market (SPY) | 5.5% | 52.1% |
| Sector (XLK) | 8.0% | 50.2% |
Fundamental Drivers
The 142.4% change in KEYS stock from 4/30/2025 to 5/3/2026 was primarily driven by a 53.0% change in the company's P/E Multiple.| (LTM values as of) | 4302025 | 5032026 | Change |
|---|---|---|---|
| Stock Price ($) | 145.40 | 352.41 | 142.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,018 | 5,677 | 13.1% |
| Net Income Margin (%) | 12.2% | 16.9% | 39.2% |
| P/E Multiple | 41.2 | 63.0 | 53.0% |
| Shares Outstanding (Mil) | 173 | 172 | 0.6% |
| Cumulative Contribution | 142.4% |
Market Drivers
4/30/2025 to 5/3/2026| Return | Correlation | |
|---|---|---|
| KEYS | 142.4% | |
| Market (SPY) | 30.4% | 55.4% |
| Sector (XLK) | 55.1% | 53.3% |
Fundamental Drivers
The 143.6% change in KEYS stock from 4/30/2023 to 5/3/2026 was primarily driven by a 182.7% change in the company's P/E Multiple.| (LTM values as of) | 4302023 | 5032026 | Change |
|---|---|---|---|
| Stock Price ($) | 144.64 | 352.41 | 143.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,551 | 5,677 | 2.3% |
| Net Income Margin (%) | 20.8% | 16.9% | -18.6% |
| P/E Multiple | 22.3 | 63.0 | 182.7% |
| Shares Outstanding (Mil) | 178 | 172 | 3.5% |
| Cumulative Contribution | 143.6% |
Market Drivers
4/30/2023 to 5/3/2026| Return | Correlation | |
|---|---|---|
| KEYS | 143.6% | |
| Market (SPY) | 78.7% | 61.0% |
| Sector (XLK) | 119.1% | 58.5% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| KEYS Return | 56% | -17% | -7% | 1% | 26% | 72% | 165% |
| Peers Return | 18% | -32% | 14% | 5% | 38% | 77% | 134% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 5% | 92% |
Monthly Win Rates [3] | |||||||
| KEYS Win Rate | 75% | 50% | 50% | 50% | 67% | 75% | |
| Peers Win Rate | 57% | 37% | 55% | 57% | 60% | 75% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| KEYS Max Drawdown | -1% | -37% | -30% | -25% | -21% | 0% | |
| Peers Max Drawdown | -7% | -43% | -13% | -16% | -25% | -2% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: FTV, TDY, TER, MKSI, VIAV. See KEYS Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/1/2026 (YTD)
How Low Can It Go
| Event | KEYS | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -31.4% | -18.8% |
| % Gain to Breakeven | 45.7% | 23.1% |
| Time to Breakeven | 213 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -12.8% | -7.8% |
| % Gain to Breakeven | 14.7% | 8.5% |
| Time to Breakeven | 12 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -29.5% | -9.5% |
| % Gain to Breakeven | 41.8% | 10.5% |
| Time to Breakeven | 391 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -23.2% | -6.7% |
| % Gain to Breakeven | 30.3% | 7.1% |
| Time to Breakeven | 664 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -35.6% | -24.5% |
| % Gain to Breakeven | 55.2% | 32.4% |
| Time to Breakeven | 1301 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -20.5% | -33.7% |
| % Gain to Breakeven | 25.8% | 50.9% |
| Time to Breakeven | 33 days | 140 days |
In The Past
Keysight Technologies's stock fell -31.4% during the 2025 US Tariff Shock. Such a loss loss requires a 45.7% gain to breakeven.
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Asset Allocation
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| Event | KEYS | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -31.4% | -18.8% |
| % Gain to Breakeven | 45.7% | 23.1% |
| Time to Breakeven | 213 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -29.5% | -9.5% |
| % Gain to Breakeven | 41.8% | 10.5% |
| Time to Breakeven | 391 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -23.2% | -6.7% |
| % Gain to Breakeven | 30.3% | 7.1% |
| Time to Breakeven | 664 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -35.6% | -24.5% |
| % Gain to Breakeven | 55.2% | 32.4% |
| Time to Breakeven | 1301 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -20.5% | -33.7% |
| % Gain to Breakeven | 25.8% | 50.9% |
| Time to Breakeven | 33 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -30.3% | -12.2% |
| % Gain to Breakeven | 43.4% | 13.9% |
| Time to Breakeven | 105 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -25.0% | -6.8% |
| % Gain to Breakeven | 33.4% | 7.3% |
| Time to Breakeven | 101 days | 15 days |
In The Past
Keysight Technologies's stock fell -31.4% during the 2025 US Tariff Shock. Such a loss loss requires a 45.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Keysight Technologies (KEYS)
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Here are 1-2 brief analogies for Keysight Technologies:
- Like Thermo Fisher Scientific, but for the electronics and communication industries. (Keysight provides essential, high-precision tools, software, and services for designing, testing, and verifying electronic products, similar to how Thermo Fisher equips scientific and medical research.)
- Like AWS (Amazon Web Services), but for validating and testing physical electronic products and communication networks. (Keysight provides the critical, complex infrastructure and tools that companies use to ensure their electronic hardware and communication systems work correctly, much like AWS provides cloud infrastructure.)
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- Electronic Design Automation (EDA) Software: Provides software for designing electronic components and systems.
- RF and Microwave Test Solutions: Offers hardware and software for testing radio frequency and microwave devices.
- Network Test Platforms and Software: Supplies platforms and applications for testing data center, routing, switching, SDN, security, and encryption networks.
- General Purpose Test Equipment: Includes oscilloscopes, logic analyzers, signal sources, waveform generators, and bit error rate testers.
- Optical Test Solutions: Provides tools like optical modulation analyzers, component analyzers, power meters, and laser sources.
- Electronic Industrial Design and Verification Tools: Offers software and hardware for designing and verifying electronic industrial products.
- Benchtop Measurement Instruments: Encompasses digital multimeters, function generators, frequency counters, data acquisition systems, and LCR meters.
- Power Supplies and Loads: Manufactures AC/DC modular power supplies and electronically programmable loads.
- Specialized Industrial Testers: Includes printed-circuit-board-assembly testers and integrated circuit parametric testers.
- Product Support Services: Provides ongoing assistance and maintenance for its products.
- Technical Support Services: Offers expert help for technical issues and product usage.
- Training and Consulting Services: Delivers educational programs and advisory services related to its solutions.
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Major Customers of Keysight Technologies (KEYS)
Keysight Technologies, Inc. primarily sells its electronic design and test solutions to other companies and organizations, operating on a business-to-business (B2B) model. The provided company description indicates that it serves a broad range of industries and sectors rather than individual consumers.
The background information does not specify individual major customer companies by name or symbol. However, it clearly identifies the following industries and sectors as Keysight's primary customer base:
- Commercial Communications Industry
- Networking Industry
- Aerospace Industry
- Defense and Government Sector
- Automotive Industry
- Energy Industry
- Semiconductor Industry
- Electronic Industry (general)
- Education Industry
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```htmlSatish Dhanasekaran, President and Chief Executive Officer
Satish Dhanasekaran became Keysight's President and Chief Executive Officer in May 2022. He joined Agilent, Keysight's predecessor company, in 2006. During his tenure, he has held multiple leadership roles, including senior vice president and chief operating officer, and president of Keysight's Communications Solutions Group. He has been instrumental in shaping the company's strategy and establishing Keysight's leadership in 5G, as well as making significant contributions to accelerate technology adoptions in areas such as 400G, quantum, and electromagnetic spectrum operations.
Neil Dougherty, Executive Vice President and Chief Financial Officer
Neil Dougherty is the Executive Vice President and Chief Financial Officer of Keysight Technologies, responsible for the company's global finance operations, including tax, treasury, and investor relations. Before Keysight's separation from Agilent Technologies in 2014, he held various roles at Agilent, including assistant treasurer, vice president, and treasurer. He also served as senior director of corporate development, where he was responsible for domestic and international acquisitions and divestitures. Dougherty joined Agilent in 1996 as a Financial Analyst and held numerous finance management positions at Hewlett-Packard, Agilent's predecessor.
Jason Kary, Senior Vice President and President, Electronic Industrial Solutions Group
Jason Kary is the Senior Vice President and President of the Electronic Industrial Solutions Group at Keysight Technologies. He leads a global business valued at approximately $2 billion, which serves the automotive, energy, general electronics, manufacturing, education, and semiconductor industries. Kary brings nearly three decades of industry experience and has held various finance leadership positions in markets including wireless communications, electronic industrial, and life sciences. He previously served as Keysight's treasurer and head of investor relations, and prior to that, was the group chief financial officer for Agilent's Life Sciences Group.
Kailash Narayanan, Senior Vice President and President, Communications Solutions Group
Kailash Narayanan is the Senior Vice President and President of Keysight's Communications Solutions Group. In this role, he leads a multi-billion dollar global business focused on the end-to-end communications industry, encompassing wireless and wireline segments, as well as aerospace and defense. His team has significantly contributed to accelerating technology adoptions in areas such as 5G, 400/800G, electromagnetic spectrum operations, and space and satellite modernization. Narayanan's tenure with Keysight and its predecessors, Agilent and Hewlett-Packard, spans more than 20 years.
Ingrid Estrada, Senior Vice President and Chief Supply Chain and Operations Officer
Ingrid Estrada is the Senior Vice President and Chief Supply Chain and Operations Officer at Keysight Technologies. She leads the global team responsible for Keysight's corporate infrastructure and operations, focusing on aligning supply chain strategies with business objectives to enhance operational efficiency and customer satisfaction. Estrada has held leadership roles in HR, supply chain, manufacturing, and sourcing across HP, Agilent, and Keysight. Her previous roles include senior vice president of Human Resources and vice president and general manager of Global Sourcing and the Remarketing Solutions Division at Agilent.
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Key Risks to Keysight Technologies (KEYS)
- Risk of technological obsolescence due to rapid advancements in served industries. Keysight Technologies operates in dynamic sectors such as commercial communications, networking, semiconductors, and automotive, which are characterized by swift technological evolution. The company's core business of providing electronic design and test solutions, including EDA software, RF/microwave test solutions, and advanced analyzers, necessitates continuous innovation to meet the demands of evolving industry standards (e.g., next-generation wireless technologies, advanced semiconductor designs, complex automotive electronics). A failure to rapidly develop and deliver cutting-edge solutions could render its products and services obsolete, impacting demand.
- Exposure to cyclical capital expenditures of high-tech industries. Keysight Technologies serves a range of industries like aerospace, defense, government, automotive, and semiconductors, which can be sensitive to macroeconomic conditions and investment cycles. Demand for the company's test and measurement equipment and software often correlates with the research and development (R&D) and capital expenditure budgets of its customers. During economic downturns or industry-specific slowdowns, reduced spending by these customers on new projects and infrastructure can directly diminish sales of Keysight's solutions.
- Intense competition in the electronic design and test solutions market. The market for electronic design automation (EDA) software and sophisticated test and measurement equipment is specialized yet competitive. Keysight Technologies faces competition in various segments, including network test platforms, oscilloscopes, signal generators, and optical solutions. Maintaining market share and profitability requires sustained investment in research and development, effective product differentiation, and competitive pricing strategies. Failure to effectively compete on technology, features, or cost could lead to a loss of market position.
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Keysight Technologies (symbol: KEYS) operates in several significant addressable markets globally, providing electronic design and test solutions. Here are the estimated market sizes for Keysight's main products and services: * Electronic Design Automation (EDA) Software Market: The global electronic design automation (EDA) tools market was valued at approximately USD 12.72 billion in 2024 and is projected to reach USD 21.93 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 11.88% during the forecast period. Another report estimates the global EDA market at US$ 17.59 billion in 2025, anticipated to rise to US$ 32.88 billion by 2032 with a CAGR of 9.4%. * Test and Measurement Equipment Market (Overall): The global test and measurement equipment market was estimated at USD 35.31 billion in 2025 and is projected to reach USD 50.63 billion by 2033, demonstrating a CAGR of 4.8% from 2026 to 2033. Other estimates place the global market size at USD 37.62 billion in 2025, reaching USD 58.66 billion by 2035 with a CAGR of 4.54%, or USD 38.06 billion in 2025, projected to reach USD 62.55 billion by 2034 with a 5.70% CAGR. * Oscilloscope Market: The global oscilloscope market was valued at approximately USD 2.5 billion in 2025 and is estimated to reach USD 3.5 billion by 2034, with a CAGR of 3.86% from 2026-2034. Another source indicates the global oscilloscope market size was USD 2.68 billion in 2025 and is projected to grow to USD 5.15 billion by 2034, exhibiting a CAGR of 7.6%. The digital storage oscilloscope market, a segment within this, was valued at USD 921.66 million in 2025 and is projected to reach USD 1548.42 million by 2033. * Radio Frequency (RF) Test Equipment Market: The global RF test equipment market was valued at USD 3.9 billion in 2024 and is estimated to grow to USD 7.3 billion by 2034, at a CAGR of 6.5%. Another analysis estimates the RF test equipment market at USD 4.27 billion in 2026, projected to reach USD 5.79 billion by 2031 with a 6.28% CAGR. * Network Monitoring and Performance Monitoring Market: The global network performance monitoring market was valued at USD 2.1 billion in 2021 and is projected to reach USD 4.2 billion by 2031, with a CAGR of 7.1%. More recently, the global network monitoring market was valued at USD 4.13 billion in 2025 and is projected to reach USD 9.52 billion by 2034, exhibiting a CAGR of 9.50%. * Semiconductor Test Equipment Market: The global semiconductor test equipment market size was valued at USD 7.65 billion in 2025 and is projected to grow to USD 14.38 billion by 2034, exhibiting a CAGR of 7.35%. Another report estimated the market size at USD 15.06 billion in 2025, reaching USD 21.59 billion by 2031 with a CAGR of 6.12%. The Semiconductor Automated Test Equipment (ATE) market, a key segment, was valued at USD 5.46 billion in 2024 and is expected to reach USD 8.35 billion by 2032 globally. * Optical Test Equipment Market: The global optical test equipment market size was valued at USD 1.04 billion in 2024 and is expected to reach USD 1.46 billion by 2032, with a CAGR of 4.42%. Within this, the global fiber optic test equipment market is set to be worth USD 2.1 billion in 2026 and reach USD 3.4 billion by 2036, witnessing a 4.9% CAGR.AI Analysis | Feedback
Keysight Technologies (KEYS) is expected to drive future revenue growth over the next 2-3 years through several key areas:
- AI Infrastructure Scaling and High-Speed Connectivity: Keysight anticipates sustained demand fueled by the rapid scaling of AI infrastructure. This includes growth in higher speeds for Ethernet-based AI networking, such as 800G and 1.6T, the increasing adoption of optical interconnects, and the critical need for system-level validation in complex AI clusters.
- Defense Modernization and Aerospace/Defense Sector Growth: Heightened global focus on deterrence and defense modernization priorities is driving record orders and revenue growth in Keysight's Aerospace, Defense, and Government (ADG) segment across all regions. This growth stems from program expansions, production automation, and new system deployments for spectrum operations, space and satellite, and radar applications.
- Next-Generation Connectivity Development: Beyond AI-specific networking, Keysight benefits from advancements in next-generation connectivity. This includes ongoing research and initiatives for 6G technology, as well as demand related to non-terrestrial networks. The company has also seen consistent wireline growth driven by R&D and manufacturing solutions for compute, memory, interconnect, and networking technologies.
- Rising Semiconductor Complexity and General Electronics: Increased complexity in semiconductors continues to drive demand for Keysight's design and test solutions. The Electronic Industrial Solutions Group (EISG) is experiencing growth across its semiconductor, general electronics, and automotive markets.
- Strategic Acquisitions and Expanding Software/Services Portfolio: Recent successful acquisitions, such as Spirent and the Optical Solutions Group, are contributing to Keysight's revenue growth and expanding its communications test and design software capabilities. Additionally, a growing mix of software and services, which accounts for approximately 40% of Keysight's revenue, with annual recurring revenue at 29%, provides a more resilient and higher-margin revenue stream.
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Share Repurchases
- Keysight Technologies authorized a new share repurchase program of up to $1.5 billion of its common stock in November 2025.
- The company repurchased approximately $375 million through buybacks in fiscal year 2025.
- Keysight has repurchased over $1.5 billion of shares since the start of 2023, with $702 million of annual share buybacks in 2023 alone.
Outbound Investments
- In March 2024, Keysight Technologies acquired British telecommunications testing company Spirent for approximately $1.5 billion, although the U.S. Department of Justice required the divestment of three of Spirent's businesses due to antitrust concerns.
- Keysight acquired France-based ESI Group for approximately $1 billion in 2023, enhancing its simulation capabilities in automotive and electronics markets.
- The company completed the acquisitions of Synopsys' Optical Solutions Group and Ansys' PowerArtist in October 2025, expanding its design engineering software portfolio and computer-aided engineering capabilities.
Capital Expenditures
- Capital expenditures were approximately $130 million in fiscal year 2025.
- Capital expenditures were approximately $140 million in fiscal year 2024.
- Capital expenditures were approximately $200 million in fiscal year 2023.
Latest Trefis Analyses
Trade Ideas
Select ideas related to KEYS.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 04302026 | PLTR | Palantir Technologies | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.0% | 0.0% | 0.0% |
| 04102026 | ADSK | Autodesk | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 8.5% | 8.5% | 0.0% |
| 04102026 | BSY | Bentley Systems | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 4.2% | 4.2% | 0.0% |
| 04102026 | ENPH | Enphase Energy | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 5.7% | 5.7% | 0.0% |
| 04102026 | BL | BlackLine | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 3.2% | 3.2% | -3.0% |
| 08312023 | KEYS | Keysight Technologies | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 15.8% | 15.6% | -10.5% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 312.40 |
| Mkt Cap | 24.2 |
| Rev LTM | 4,334 |
| Op Inc LTM | 852 |
| FCF LTM | 791 |
| FCF 3Y Avg | 750 |
| CFO LTM | 927 |
| CFO 3Y Avg | 905 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 11.4% |
| Rev Chg 3Y Avg | 3.8% |
| Rev Chg Q | 16.9% |
| QoQ Delta Rev Chg LTM | 4.1% |
| Op Inc Chg LTM | 10.2% |
| Op Inc Chg 3Y Avg | 1.5% |
| Op Mgn LTM | 16.4% |
| Op Mgn 3Y Avg | 17.6% |
| QoQ Delta Op Mgn LTM | 0.3% |
| CFO/Rev LTM | 19.8% |
| CFO/Rev 3Y Avg | 21.0% |
| FCF/Rev LTM | 15.8% |
| FCF/Rev 3Y Avg | 16.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 24.2 |
| P/S | 7.1 |
| P/Op Inc | 42.9 |
| P/EBIT | 43.3 |
| P/E | 48.3 |
| P/CFO | 35.2 |
| Total Yield | 1.8% |
| Dividend Yield | 0.1% |
| FCF Yield 3Y Avg | 4.0% |
| D/E | 0.1 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 15.3% |
| 3M Rtn | 31.1% |
| 6M Rtn | 91.4% |
| 12M Rtn | 204.2% |
| 3Y Rtn | 194.8% |
| 1M Excs Rtn | 4.6% |
| 3M Excs Rtn | 26.9% |
| 6M Excs Rtn | 93.5% |
| 12M Excs Rtn | 192.0% |
| 3Y Excs Rtn | 124.0% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Communications Solutions Group (CSG) | 3,420 | 3,803 | 3,523 | 3,132 | |
| Electronic Industrial Solutions Group (EISG) | 1,559 | 1,617 | 1,418 | 1,089 | |
| Total | 4,979 | 5,420 | 4,941 | 4,221 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Communications Solutions Group (CSG) | 921 | 1,085 | 932 | 773 | |
| Electronic Industrial Solutions Group (EISG) | 357 | 501 | 444 | 296 | |
| Restructuring and other | -70 | -14 | -9 | -6 | |
| Acquisition and integration costs | -91 | -9 | -9 | -13 | |
| Amortization of acquisition-related balances | -139 | -103 | -174 | -224 | |
| Share-based compensation | -145 | -126 | -104 | -93 | |
| Gain on insurance settlement | 32 | ||||
| Total | 833 | 1,334 | 1,080 | 765 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Communications Solutions Group (CSG) | 4,721 | 4,410 | 4,312 | 4,122 | 3,832 |
| Electronic Industrial Solutions Group (EISG) | 2,952 | 1,920 | 1,715 | 1,523 | 1,334 |
| Cash and cash equivalents | 1,796 | 2,472 | 2,042 | 2,052 | 1,756 |
| Pension and other assets | 540 | 468 | 549 | 449 | 467 |
| Long-term deferred tax assets | 378 | 671 | 667 | 711 | 740 |
| Tax receivables | 249 | ||||
| Long-term investments | 110 | 81 | 62 | 70 | 61 |
| Accumulated amortization of other intangibles | -1,477 | -1,339 | -1,249 | -1,146 | -972 |
| Total | 9,269 | 8,683 | 8,098 | 7,781 | 7,218 |
Price Behavior
| Market Price | $352.41 | |
| Market Cap ($ Bil) | 60.6 | |
| First Trading Date | 10/20/2014 | |
| Distance from 52W High | 0.0% | |
| 50 Days | 200 Days | |
| DMA Price | $304.40 | $216.15 |
| DMA Trend | up | up |
| Distance from DMA | 15.8% | 63.0% |
| 3M | 1YR | |
| Volatility | 59.0% | 38.1% |
| Downside Capture | 0.52 | 0.69 |
| Upside Capture | 274.23 | 195.95 |
| Correlation (SPY) | 46.9% | 55.2% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.11 | 1.63 | 1.85 | 1.80 | 1.67 | 1.38 |
| Up Beta | 1.69 | 1.68 | 1.46 | 1.62 | 1.67 | 1.29 |
| Down Beta | -2.11 | 2.17 | 1.90 | 1.58 | 1.65 | 1.40 |
| Up Capture | 146% | 169% | 340% | 402% | 317% | 333% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 17 | 25 | 39 | 77 | 148 | 402 |
| Down Capture | -318% | 134% | 107% | 113% | 124% | 108% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 5 | 18 | 25 | 48 | 102 | 347 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KEYS | |
|---|---|---|---|---|
| KEYS | 147.8% | 38.0% | 2.47 | - |
| Sector ETF (XLK) | 55.3% | 20.5% | 2.04 | 53.1% |
| Equity (SPY) | 30.6% | 12.5% | 1.88 | 55.2% |
| Gold (GLD) | 39.5% | 27.2% | 1.20 | 7.9% |
| Commodities (DBC) | 51.5% | 17.9% | 2.20 | -6.9% |
| Real Estate (VNQ) | 13.1% | 13.5% | 0.67 | 26.4% |
| Bitcoin (BTCUSD) | -17.1% | 42.2% | -0.33 | 24.2% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KEYS | |
|---|---|---|---|---|
| KEYS | 19.3% | 32.5% | 0.60 | - |
| Sector ETF (XLK) | 18.6% | 24.8% | 0.67 | 65.7% |
| Equity (SPY) | 12.8% | 17.1% | 0.59 | 66.3% |
| Gold (GLD) | 20.5% | 17.9% | 0.94 | 10.8% |
| Commodities (DBC) | 14.3% | 19.1% | 0.61 | 10.9% |
| Real Estate (VNQ) | 3.5% | 18.8% | 0.09 | 46.3% |
| Bitcoin (BTCUSD) | 7.7% | 56.2% | 0.35 | 28.2% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KEYS | |
|---|---|---|---|---|
| KEYS | 29.3% | 32.3% | 0.87 | - |
| Sector ETF (XLK) | 23.6% | 24.4% | 0.88 | 65.6% |
| Equity (SPY) | 14.9% | 17.9% | 0.71 | 64.8% |
| Gold (GLD) | 13.6% | 15.9% | 0.71 | 3.9% |
| Commodities (DBC) | 9.7% | 17.7% | 0.46 | 18.6% |
| Real Estate (VNQ) | 5.7% | 20.7% | 0.24 | 42.7% |
| Bitcoin (BTCUSD) | 67.7% | 66.9% | 1.07 | 16.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 2/23/2026 | 23.1% | 27.9% | 21.9% |
| 11/24/2025 | 10.0% | 16.3% | 16.4% |
| 8/19/2025 | -3.0% | 0.6% | 8.4% |
| 5/20/2025 | -0.2% | -2.6% | -2.1% |
| 2/25/2025 | -6.9% | -11.1% | -9.2% |
| 11/19/2024 | 8.8% | 13.0% | 5.1% |
| 8/20/2024 | 13.9% | 11.2% | 12.1% |
| 5/20/2024 | -8.4% | -10.8% | -15.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 11 | 14 | 12 |
| # Negative | 13 | 10 | 12 |
| Median Positive | 5.9% | 4.7% | 9.9% |
| Median Negative | -4.0% | -6.3% | -5.8% |
| Max Positive | 23.1% | 27.9% | 21.9% |
| Max Negative | -13.8% | -14.9% | -15.4% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 01/31/2026 | 03/05/2026 | 10-Q |
| 10/31/2025 | 12/17/2025 | 10-K |
| 07/31/2025 | 08/29/2025 | 10-Q |
| 04/30/2025 | 06/03/2025 | 10-Q |
| 01/31/2025 | 03/06/2025 | 10-Q |
| 10/31/2024 | 12/17/2024 | 10-K |
| 07/31/2024 | 08/29/2024 | 10-Q |
| 04/30/2024 | 05/31/2024 | 10-Q |
| 01/31/2024 | 03/05/2024 | 10-Q |
| 10/31/2023 | 12/15/2023 | 10-K |
| 07/31/2023 | 08/30/2023 | 10-Q |
| 04/30/2023 | 05/31/2023 | 10-Q |
| 01/31/2023 | 03/03/2023 | 10-Q |
| 10/31/2022 | 12/15/2022 | 10-K |
| 07/31/2022 | 08/30/2022 | 10-Q |
| 04/30/2022 | 06/01/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q1 2026 Earnings Reported 2/23/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 1.69 Bil | 1.70 Bil | 1.71 Bil | 10.4% | Higher New | Guidance: 1.54 Bil for Q1 2026 | |
| Q2 2026 Non-GAAP EPS | 2.27 | 2.3 | 2.33 | 16.2% | Higher New | Guidance: 1.98 for Q1 2026 | |
Prior: Q4 2025 Earnings Reported 11/24/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 1.53 Bil | 1.54 Bil | 1.55 Bil | 11.6% | Higher New | Guidance: 1.38 Bil for Q4 2025 | |
| Q1 2026 Non-GAAP EPS | 1.95 | 1.98 | 2.01 | 8.8% | Higher New | Guidance: 1.82 for Q4 2025 | |
| 2025 Revenue Growth | 7.0% | ||||||
| 2025 Non-GAAP EPS Growth | 13.0% | ||||||
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Hamada, Richard P | Direct | Sell | 4012026 | 275.78 | 870 | 239,929 | 11,627,000 | Form | |
| 2 | Dhanasekaran, Satish | President and CEO | Direct | Sell | 3262026 | 300.00 | 1,667 | 500,100 | 36,719,273 | Form |
| 3 | Li, Jeffrey K | SVP and Secretary | Direct | Sell | 3262026 | 297.19 | 2,000 | 594,380 | 10,252,801 | Form |
| 4 | Dougherty, Neil | EVP and CFO | Direct | Sell | 3262026 | 298.37 | 2,000 | 596,740 | 37,377,493 | Form |
| 5 | Dhanasekaran, Satish | President and CEO | Direct | Sell | 3232026 | 290.00 | 1,667 | 483,430 | 35,978,728 | Form |
KEYS Trade Sentinel
ACCUMULATE (Score 7-8)
CONVICTION RATIONALE
Keysight scores an 8, meriting an 'ACCUMULATE' rating. The company demonstrates exceptional business quality with a widening competitive moat and is a direct beneficiary of powerful secular tailwinds in AI and advanced communications. Leading indicators like order growth are strongly accelerating. The valuation is high but appears justified by the growth trajectory. The primary risk is a specific, monitorable geopolitical event (China export controls), which prevents a higher 'OVERWEIGHT' rating at this time.
STOCK ARCHETYPE
Primary: Quality Compounder / Stalwart, Secondary: Secular CyclicalKEYS exhibits 'Stalwart' traits with #1 market share, high margins, and strong pricing power. However, its revenue is tied to customer R&D capex cycles, making it a 'Secular Cyclical'. The current drivers (AI, 6G) are long-term secular trends, justifying the blended classification (70% Stalwart / 30% Cyclical).
INVESTMENT THESIS
The core thesis is that Keysight is a direct and critical enabler of long-term technology super-cycles, particularly the AI hardware buildout. The increasing complexity of high-speed networking (800G to 3.2T) and next-gen AI semiconductors requires more sophisticated, higher-ASP test solutions, driving accelerating, high-margin revenue growth.
- Record Q1 FY26 Orders of $1.645 billion, representing +30% YoY growth.
- Communications Solutions Group (CSG) revenue accelerated to +27% YoY, driven by a +33% surge in commercial communications.
- Book-to-bill ratio remains positive at 1.03, indicating that demand continues to outpace current revenue recognition.
- Management has raised FY26 guidance, expecting revenue growth just above 20%.
PRIMARY RISK
The primary risk to the thesis is a significant escalation of U.S. export controls on technology to China. The proposed 'MATCH Act' could prohibit the sale and, more critically, the servicing of advanced test equipment to designated Chinese technology firms. Given that the Asia Pacific region accounts for approximately 40% of revenue, such a regulatory change would create a material headwind to both revenue and earnings.
- The bipartisan 'MATCH Act' was introduced in the U.S. Congress in early April 2026, indicating active legislative risk.
- Precedent from June 2025 shows that semiconductor-related stocks react negatively and immediately to news of potential U.S. export control tightening.
| KPI | Threshold | Rationale |
|---|---|---|
| Total Company Orders (YoY Growth) | >20% | This is the primary leading indicator of future revenue. Sustained growth above 20% confirms the durability of the AI-driven demand cycle. |
| Book-to-Bill Ratio | >1.0 | A ratio above 1.0 signals that demand is robust and the company is building backlog, providing high visibility into future quarters. |
| Communications Solutions Group (CSG) Revenue Growth | >20% | As the primary profit and growth engine, the performance of this segment is critical. Sustained high growth validates the core AI thesis. |
Secular AI Growth vs. Geopolitical Headwind
BULL VIEW
The AI hardware buildout is a multi-year super-cycle. Record orders (+30%) and accelerating CSG growth (+27%) confirm Keysight is a critical, high-margin enabler of this trend.
CORE TENSION
Can accelerating AI & 6G demand outrun the material risk of U.S. export controls on China, which represents a significant portion of revenue?
PREVAILING SENTIMENT
The bulls are winning. Q1 FY26 Total Company Orders of $1.645B (+30% YoY) and Communications Solutions Group (CSG) revenue growth of +27% provide concrete evidence of accelerating demand.
BEAR VIEW
The bipartisan 'MATCH Act' is an active legislative threat that could prohibit sales and servicing to China, directly impairing ~40% of regional revenue and breaking the growth story.
| Timeline | Event & Metric To Watch |
|---|---|
Next 6 Months | U.S. Export Control Legislation (MATCH Act) Watch: Watch for the MATCH Act passing a committee vote or the Dept. of Commerce announcing a formal review of test equipment regulations. This is a binary, headline-driven catalyst. |
Late May 2026 | Q2 FY2026 Earnings Call Watch: Total Company Orders YoY Growth. A result above the Q1 baseline of +30% would confirm thesis acceleration. Also watch for any guidance on non-AI semiconductor 'digestion'. |
Late August 2026 | Q3 FY2026 Earnings Call Watch: Communications Solutions Group (CSG) Revenue Growth. Continued growth above the 25% threshold is needed to validate the premium valuation and AI thesis. |
Ongoing (Next 6 months) | Key Macro Data (CPI / Fed Meetings) Watch: 10-Year Treasury Yield. A sustained break above 4.5% could trigger a sector-wide rotation out of high-multiple technology stocks, irrespective of company performance. |
| Date | Event | Stock Impact |
|---|---|---|
Nov 25, 2025 | Q4 FY2025 Earnings Details: Reported strong results demonstrating continued business acceleration. Order growth was +14% YoY and CSG revenue growth was +11% YoY, setting the stage for a strong start to FY26. | Surged +10.0% $177.67 -> $195.46 |
Jan 15, 2026 | Strategic Product Launch Details: Keysight announced a new suite of solutions for 3.2T Ethernet testing, directly targeting the R&D needs of AI data center and hyperscale customers, reinforcing its technology leadership. | Rose significantly by 2.4% $209.40 -> $214.50 |
Feb 23, 2026 | Q1 FY2026 Earnings & Guidance Raise Details: Reported record orders of $1.645B (+30% YoY) and 27% revenue growth in the core CSG segment. Raised FY26 revenue growth guidance to above 20%, signaling strong demand. | Surged +23.1% $245.00 -> $301.48 |
Apr 8, 2026 | Geopolitical Risk Materializes Details: The bipartisan 'MATCH Act' was introduced in Congress, proposing export controls that could impact China revenue. Despite the risk, the stock rose, with the market focusing on strong fundamentals. | Surged +5.9% $300.61 -> $318.33 |
Position Sizing
4% - 6%
NORMAL
Stock is in an Explosive Volatility regime (3.7x S&P) with Spiking near-term fear. While fundamentals are excellent (Bullish, widening moat), this extreme volatility requires capping position size to manage drawdown risk.
Diversification Alternatives
ROP
INDUSTRYRoper is a high-quality, diversified industrial and software compounder. It offers a lower-volatility profile and is not directly exposed to the primary geopolitical (China export) risk facing Keysight.
TER
SECTORTeradyne provides exposure to the semiconductor complexity theme but is more focused on production testing. This offers a different risk profile tied to volumes rather than R&D budgets.
Keysight is re-rating from a cyclical test equipment provider to a secular growth story, driven by its critical role in enabling long-term technology super-cycles like AI data centers, 5G/6G evolution, and defense modernization.
Filter all news through the lens of accelerating, high-complexity R&D spending in AI, communications, and defense.
Order growth outpacing revenue (book-to-bill "> 1.0); revenue growth acceleration in Commercial Communications driven by data center and AI applications; rising software and Annual Recurring Revenue (ARR) as a percentage of total revenue; design wins or partnerships with major AI hardware or cloud players.
Decelerating order growth or a book-to-bill ratio below 1.0 for more than one quarter; specific commentary on a slowdown in R&D spending from semiconductor or hyperscale customers; margin compression due to inability to pass on costs or competitive pricing pressure from Rohde & Schwarz or Anritsu.
Generic commentary on macroeconomic conditions (the business is driven by specific R&D cycles, not general GDP); quarterly fluctuations in specific industrial sub-segments (the core drivers are larger secular trends); single-product announcements from competitors (Keysight's moat is its integrated hardware/software platform).
Repricing Catalyst
The market is repricing Keysight as a direct beneficiary of the AI hardware buildout. The increasing complexity of high-speed networking (800G to 3.2T Ethernet) and next-gen semiconductors for AI workloads requires more sophisticated and expensive test solutions, driving accelerating, high-margin revenue. This was evidenced by record Q1 orders of $1.645 billion, outpacing revenue and driven by wireline demand for the first time.
Communications Test & Measurement Systems (CSG)
$4.5B TTM (70.3% of Total) · 68.5% MarginWhat It Is
Oscilloscopes, network analyzers, signal generators, and PathWave design/test software used for testing 5G/6G, AI data center networking hardware (800G/1.6T/3.2T optics), and aerospace/defense electronics (radar, satellite).
Who Pays & How
Named customers include Alphabet, Nvidia, Microsoft, Samsung, and Boeing. They pay to validate that their multi-billion dollar R&D investments in cutting-edge technologies meet performance specifications before production. Switching costs are high due to deep integration into engineering workflows and the need for metrology-grade precision.
Competition
Electronic Industrial Test Systems (EISG)
$1.9B TTM (29.7% of Total) · 62.4% MarginWhat It Is
Test and measurement solutions for Automotive (EV battery, ADAS), Semiconductor (wafer and device test), and General Electronics manufacturing.
Who Pays & How
Named customers include Ford, Tesla, Infineon, Siemens, and Taiwan Semiconductor. They pay to ensure the reliability and performance of electronic components in industrial applications, from EV powertrains to advanced semiconductor chips.
Competition
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