Keysight Technologies, Inc. (KEYS) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Keysight Technologies, Inc. (KEYS) Technology Profile & Competitive Position

Keysight Technologies, Inc. is a leading provider of electronic design and test solutions, serving diverse sectors like communications, aerospace, and semiconductors. With a global presence and a comprehensive portfolio of hardware, software, and services, Keysight enables technological advancements and product innovation, reflected in its high P/E ratio of 44.86.

What Is the Investment Thesis for KEYS?

With a profit margin of 16.9% and a gross margin of 61.9%, the company demonstrates strong profitability and operational efficiency. Keysight's diverse customer base across multiple industries mitigates risk and provides revenue stability. Growth catalysts include the increasing demand for advanced testing solutions in emerging technologies such as 5G, electric vehicles, and IoT. However, the high P/E ratio of 44.86 suggests that the stock may be overvalued, and potential investors should carefully consider this valuation in light of future growth prospects. Keysight's ability to maintain its technological edge and adapt to evolving industry standards will be crucial for sustained success.

Based on FMP financials and quantitative analysis

KEYS Key Highlights

Market Cap of $55.7B reflects strong investor confidence in Keysight's market leadership.

• P/E Ratio of 44.86 indicates a premium valuation, suggesting high growth expectations.
• Profit Margin of 16.9% demonstrates efficient operations and profitability.
• Gross Margin of 61.9% highlights Keysight's ability to command premium pricing.
• Beta of 1.15 suggests slightly higher volatility compared to the overall market.

Who Are KEYS's Competitors?

KEYS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are KEYS's Key Strengths?

Leading market position in electronic design and test solutions.

• Comprehensive product portfolio spanning hardware, software, and services.
• Strong customer relationships across diverse industries.
• Global presence with sales and support operations worldwide.

What Are KEYS's Weaknesses?

High P/E ratio may indicate overvaluation.

• Dependence on specific industries and technologies.
• Exposure to economic cycles and industry downturns.
• Potential for technological obsolescence.

What Could Drive KEYS Stock Higher?

KEYS catalyst: Continued expansion of 5G infrastructure and device testing requirements will drive demand for Keysight's solutions.

• Increasing adoption of electric vehicles and autonomous driving technologies will fuel growth in automotive electronics testing.
• Government investments in aerospace and defense technology will support demand for Keysight's products.
• New product releases in advanced testing solutions for emerging technologies are expected to boost revenue growth in Q3 2026.
• Potential acquisitions to expand product portfolio and market reach by the end of 2026.

What Are the Key Risks for KEYS?

Rich valuation — a P/E of 44.86 runs well above the Technology sector’s ~32.70x, leaving little room for a miss.

• Insider selling — insiders were net sellers of roughly $15.4M recently.
• Intense competition from established and emerging players could erode market share.
• Rapid technological changes and evolving industry standards may require significant investments in R&D.
• Economic slowdowns and reduced capital spending could negatively impact demand for Keysight's products.
• Geopolitical risks and trade tensions could disrupt supply chains and impact international sales.
• High P/E ratio may lead to stock price volatility if growth expectations are not met.

What Are the Growth Opportunities for KEYS?

• Expansion in 5G Testing: The rollout of 5G networks globally presents a significant growth opportunity for Keysight. The company's testing solutions are essential for ensuring the performance and reliability of 5G infrastructure and devices. As 5G adoption accelerates, the demand for Keysight's products is expected to increase, potentially contributing significantly to revenue growth over the next 3-5 years. The 5G test equipment market is projected to reach $3 billion by 2028.
• Automotive Electronics: The automotive industry's shift towards electric vehicles (EVs) and autonomous driving is driving demand for advanced testing solutions. Keysight's products are used to test and validate the performance of EV batteries, power electronics, and autonomous driving systems. This segment offers substantial growth potential as the automotive industry continues to innovate, with the automotive test equipment market expected to grow to $7.7 billion by 2027.
• Aerospace and Defense: Keysight's solutions are critical for testing and validating the performance of aerospace and defense systems, including radar, satellite communications, and electronic warfare equipment. Government investments in defense technology and the increasing complexity of aerospace systems are driving demand for Keysight's products. This market segment provides a stable revenue stream and long-term growth opportunities, with the global aerospace and defense testing market projected to reach $12.4 billion by 2028.
• Semiconductor Testing: The semiconductor industry is a key market for Keysight, with its products used to test and validate the performance of integrated circuits and other semiconductor devices. The increasing complexity of semiconductors and the growing demand for high-performance computing are driving the need for advanced testing solutions. This segment offers significant growth potential, with the semiconductor test equipment market expected to reach $9.8 billion by 2027.
• Software and Services: Keysight is expanding its offerings in software and services, providing customers with comprehensive solutions that go beyond hardware. This includes electronic design automation (EDA) software, test automation software, and consulting services. By offering a broader range of solutions, Keysight can strengthen its customer relationships and generate recurring revenue streams. The global EDA software market is projected to reach $14.6 billion by 2028.

What Opportunities Does KEYS Have?

• Expansion in emerging technologies such as 5G, electric vehicles, and IoT.
• Growth in software and services offerings.
• Penetration of new geographic markets.
• Strategic acquisitions to expand product portfolio and market reach.

What Are KEYS's Competitive Advantages?

• Technological Expertise: Keysight possesses deep technological expertise in electronic design and test solutions, developed over decades of innovation.
• Comprehensive Product Portfolio: The company offers a broad range of hardware, software, and services, providing customers with complete solutions.
• Established Customer Relationships: Keysight has long-standing relationships with leading companies in various industries.
• Global Presence: The company has a global presence, with sales and support operations in key markets around the world.

What Does KEYS Do?

Keysight Technologies, Inc., founded in 1939 and headquartered in Santa Rosa, California, is a prominent player in the electronic design and test solutions industry. Originating as a part of Hewlett-Packard, Keysight spun off as an independent company in 2014, inheriting a rich legacy of innovation and technological expertise. The company's core business revolves around providing solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries across the Americas, Europe, and the Asia Pacific regions. Keysight operates through two primary segments: the Communications Solutions Group and the Electronic Industrial Solutions Group. The Communications Solutions Group offers electronic design automation (EDA) software, radio frequency and microwave test solutions, and hardware and virtual network test platforms. The Electronic Industrial Solutions Group provides design tools, design verification tools, and a range of test and measurement products, including digital multimeters, function generators, and data acquisition systems. Keysight's products and services support the entire technology lifecycle, from design and simulation to testing and optimization. Keysight distinguishes itself through its focus on precision and accuracy, catering to industries where reliability and performance are critical. The company's global presence is supported by a direct sales force, distributors, resellers, and manufacturer's representatives, ensuring broad market coverage and customer support.

What Products and Services Does KEYS Offer?

• Provides electronic design automation (EDA) software.
• Offers radio frequency and microwave test solutions.
• Develops hardware and virtual network test platforms.
• Creates software applications for data centers and networking.
• Manufactures oscilloscopes, logic analyzers, and signal sources.
• Provides optical modulation and component analyzers.
• Offers product support, technical support, and training services.

How Does KEYS Make Money?

• Sells electronic design and test solutions to various industries.
• Generates revenue from hardware, software, and services.
• Utilizes a direct sales force, distributors, and resellers.
• Offers product support, technical support, and training and consulting services.

What Industry Does KEYS Operate In?

Keysight Technologies operates in the electronic test and measurement equipment industry, which is experiencing growth driven by technological advancements in areas like 5G, IoT, and automotive electronics. The industry is characterized by intense competition and rapid innovation. Keysight holds a strong position due to its comprehensive product portfolio and established customer relationships. Competitors include Telefonaktiebolaget LM Ericsson (publ) and Garmin Ltd., but Keysight differentiates itself through its focus on high-precision solutions and broad industry coverage.

Who Are KEYS's Key Customers?

• Commercial communications companies.
• Networking equipment manufacturers.
• Aerospace and defense contractors.
• Automotive companies.
• Semiconductor manufacturers.

Over the past six months, Keysight Technologies, Inc. insiders filed 26 SEC Form 4 transactions — 15 sales and 11 purchases. On net that is roughly 42K shares disposed (about $15.4M), a signal worth weighing alongside the fundamentals.

Keysight Technologies, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 9.9% above estimates on average.

Keysight Technologies, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 8.42 places it in the safe zone, indicating low near-term bankruptcy risk.

Return on equity for Keysight Technologies, Inc. stands at 17.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 8.9%, showing how much profit it generates from its asset base. KEYS trades at a trailing price-to-earnings ratio of 44.86, above the Technology sector average of ~32.70x. Its free cash flow yield is 2.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.90 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.7%, the inverse of the P/E and a quick read on earnings relative to price.

Keysight Technologies, Inc. (KEYS) Valuation Context

Valued at $55.7B, KEYS is classified as a large-cap stock. Analyst price targets span from $384.00 to $440.00, with a consensus of $416.63. At the current price of $325.65, that implies approximately 28% upside potential. Relative to its peer group, KEYS's quantitative score of 77/100 is roughly in line with the peer average of 71/100.

KEYS Revenue & Earnings Trend

In Q3 FY2026, KEYS generated $1.85B in top-line revenue, marking a sequential increase of 7.5%. The company recorded net income of $397.0M, with diluted EPS of $2.29. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Technology company. Across the four most recent quarters, KEYS averaged $1.82 in diluted EPS.

Company Profile

Keysight Technologies, Inc. operates in the Hardware, Equipment & Parts industry within the Technology sector. It is headquartered in Santa Rosa, US. The company is led by CEO Satish C. Dhanasekaran. KEYS has traded publicly since 2014.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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