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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
14.5%
Sector: -1.4%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Keysight Technologies, Inc. (KEYS) receives a "Hold" rating with a composite score of 51.4/100, ranked #649 out of 4446 stocks. Key factor scores: Quality 50/100, Value 40/100, Momentum 72/100. This is quantitative analysis only — not investment advice.
Keysight Technologies, Inc. (KEYS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Keysight Technologies, Inc. Do?
Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. Its Communications Solutions Group segment provides electronic design automation (EDA) software; radio frequency and microwave test solutions, and related software; hardware and virtual network test platforms and software applications, including data center, routing and switching, software defined networking, security, and encryption; oscilloscopes, logic and serial protocol analyzers, logic-signal sources, arbitrary waveform generators, and bit error rate testers; and optical modulation analyzers, optical component analyzers, optical power meters, and optical laser source solutions, as well as resells refurbished used Keysight equipment. The company's Electronic Industrial Solutions Group segment offers design tools; design verification tools; and digital multimeters, function generators, frequency counters, data acquisition systems, audio analyzers, LCR meters, thermal imagers, source measure units, ultra-high precision device current analyzers, and test executive software platforms, as well as various power supplies comprising AC/DC modular supplies and electronically programmable loads. This segment also provides printed-circuit-board-assembly testers, integrated circuit parametric testers, and sub-nano-meter positioning sub-assemblies; and test and measurement products and software. The company offers product support, technical support, and training and consulting services. It sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California. Keysight Technologies, Inc. (KEYS) is classified as a large-cap stock in the Technology sector, specifically within the Measuring And Control Equipment industry. The company is led by CEO Satish Dhanasekaran and employs approximately 15,000 people, headquartered in Santa Rosa, California. With a market capitalization of $49.7B, KEYS is one of the prominent companies in the Technology sector.
Keysight Technologies, Inc. (KEYS) Stock Rating — Hold (April 2026)
As of April 2026, Keysight Technologies, Inc. receives a Hold rating with a composite score of 51.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.KEYS ranks #649 out of 4,446 stocks in our coverage universe. Within the Technology sector, Keysight Technologies, Inc. ranks #52 of 584 stocks, placing it in the top 10% of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
KEYS Stock Price and 52-Week Range
Keysight Technologies, Inc. (KEYS) currently trades at $324.18. The stock gained $1.24 (0.4%) in the most recent trading session. The 52-week high for KEYS is $311.81, which means the stock is currently trading 4.0% from its annual peak. The 52-week low is $121.43, putting the stock 167.0% above its annual trough. Recent trading volume was 1.2M shares, reflecting moderate market activity.
Is KEYS Overvalued or Undervalued? — Valuation Analysis
Keysight Technologies, Inc. (KEYS) carries a value factor score of 40/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 57.41x, compared to the Technology sector average of 45.27x — a premium of 27%. The price-to-book ratio stands at 8.31x, versus the sector average of 3.16x. The price-to-sales ratio is 9.28x, compared to 1.06x for the average Technology stock. On an enterprise value basis, KEYS trades at 59.64x EV/EBITDA, versus 12.79x for the sector.
Overall, KEYS's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Keysight Technologies, Inc. Profitability — ROE, Margins, and Quality Score
Keysight Technologies, Inc. (KEYS) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 14.5%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at 7.8% versus the sector average of -1.0%.
On a margin basis, Keysight Technologies, Inc. reports gross margins of 62.3%, compared to 50.9% for the sector. The operating margin is 16.4% (sector: -0.5%). Net profit margin stands at 16.1%, versus -1.5% for the average Technology stock. Revenue growth is running at 31.5% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
KEYS Debt, Balance Sheet, and Financial Health
Keysight Technologies, Inc. has a debt-to-equity ratio of 41.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.60x, indicating strong short-term liquidity. Total debt on the balance sheet is $2.53B. Cash and equivalents stand at $1.87B.
KEYS has a beta of 1.65, meaning it is more volatile than the broader market — a $10,000 investment in KEYS would be expected to move 65.0% more than the S&P 500 on any given day. The stability factor score for Keysight Technologies, Inc. is 58/100, reflecting average volatility within the normal range for its sector.
Keysight Technologies, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Keysight Technologies, Inc. reported revenue of $5.56B and earnings per share (EPS) of $1.64. Net income for the quarter was $898M. Gross margin was 62.3%. Operating income came in at $907M.
In Q1 2026, Keysight Technologies, Inc. reported revenue of $1.60B and earnings per share (EPS) of $1.64. Net income for the quarter was $281M. Gross margin was 62.2%. Revenue grew 23.3% year-over-year compared to Q1 2025. Operating income came in at $248M.
In FY 2025, Keysight Technologies, Inc. reported revenue of $5.38B and earnings per share (EPS) of $4.93. Net income for the quarter was $850M. Gross margin was 62.1%. Revenue grew 8.0% year-over-year compared to FY 2024. Operating income came in at $876M.
In Q3 2025, Keysight Technologies, Inc. reported revenue of $1.35B and earnings per share (EPS) of $1.11. Net income for the quarter was $191M. Gross margin was 61.7%. Revenue grew 11.1% year-over-year compared to Q3 2024. Operating income came in at $234M.
Over the past 8 quarters, Keysight Technologies, Inc. has demonstrated a growth trajectory, with revenue expanding from $1.22B to $5.56B. Investors analyzing KEYS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
KEYS Dividend Yield and Income Analysis
Keysight Technologies, Inc. (KEYS) does not currently pay a dividend. This is common among growth-oriented companies in the Measuring And Control Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
KEYS Momentum and Technical Analysis Profile
Keysight Technologies, Inc. (KEYS) has a momentum factor score of 72/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 42/100 reflects moderate short selling activity.
KEYS vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Keysight Technologies, Inc. (KEYS) ranks #52 out of 584 stocks based on the Blank Capital composite score. This places KEYS in the top decile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing KEYS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full KEYS vs S&P 500 (SPY) comparison to assess how Keysight Technologies, Inc. stacks up against the broader market across all factor dimensions.
KEYS Next Earnings Date
No upcoming earnings date has been announced for Keysight Technologies, Inc. (KEYS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy KEYS? — Investment Thesis Summary
Keysight Technologies, Inc. presents a balanced picture with arguments on both sides. Price momentum is positive at 72/100, suggesting the trend favors buyers.
In summary, Keysight Technologies, Inc. (KEYS) earns a Hold rating with a composite score of 51.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on KEYS stock.
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Institutional Research Dossier
Keysight Technologies, Inc. (KEYS) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Keysight Technologies is currently rated as a Hold, and this assessment is primarily driven by its rich valuation relative to its growth prospects and sector peers. While Keysight operates in a technologically advanced and growing industry, its current multiples, particularly its P/E and EV/EBITDA, suggest that much of its future growth is already priced into the stock. The company's strong margins and returns on equity are positives, but the high valuation necessitates caution.
The key takeaway is that while Keysight is a high-quality company with a solid business model, investors should be wary of paying too high a price. The company's future performance needs to be exceptional to justify its current valuation, and any slowdown in growth or compression in margins could lead to significant downside risk. A more attractive entry point may present itself if the valuation becomes more aligned with its growth potential and sector averages.
Business Strategy & Overview
Keysight Technologies operates as a provider of electronic design and test solutions, serving a diverse range of industries including communications, networking, aerospace, defense, automotive, and semiconductors. The company's revenue is generated through two primary segments: the Communications Solutions Group (CSG) and the Electronic Industrial Solutions Group (EISG). CSG focuses on providing solutions for the communications and networking sectors, including EDA software, RF and microwave test solutions, and network test platforms. EISG caters to a broader industrial market, offering design tools, test and measurement products, and software for various applications.
Keysight's strategic positioning revolves around providing comprehensive solutions that span the entire product lifecycle, from design and simulation to testing and validation. This end-to-end approach allows the company to capture a larger share of its customers' spending and build deeper relationships. The company invests heavily in research and development to maintain its technological edge and introduce new products and solutions that address emerging market trends. This is crucial in the rapidly evolving technology landscape.
The company's product pipeline is focused on addressing key trends such as 5G, IoT, and autonomous driving. These areas represent significant growth opportunities for Keysight, as they require advanced testing and measurement solutions to ensure performance and reliability. Keysight's ability to capitalize on these trends will be critical to its future success. The company also focuses on software and services, which provide recurring revenue streams and higher margins.
Keysight sells its products through a combination of direct sales force, distributors, resellers, and manufacturer's representatives. This multi-channel approach allows the company to reach a broad customer base and tailor its sales efforts to specific market segments. The company also provides product support, technical support, and training and consulting services, which enhance customer satisfaction and loyalty.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
31.5%
Sector: 14.2%
+121% VS SCTR
Economic Moat Analysis
Keysight Technologies possesses a narrow economic moat, primarily derived from intangible assets and switching costs. The company's intangible assets stem from its proprietary technology and expertise in electronic design and test solutions. Keysight has a long history of innovation and has built a strong reputation for providing high-quality, reliable products. This reputation, coupled with its intellectual property, creates a barrier to entry for competitors.
Switching costs also contribute to Keysight's moat. The company's products are often deeply integrated into its customers' workflows, and switching to a competitor's solution can be costly and time-consuming. This is particularly true for customers in highly regulated industries, such as aerospace and defense, where validation and certification processes can be lengthy and expensive. The complexity of the testing and measurement equipment also contributes to the switching costs, as engineers need to be trained on new systems.
However, the moat is not wide due to the presence of strong competitors and the constant need for innovation. The technology industry is characterized by rapid change, and Keysight must continually invest in R&D to maintain its competitive advantage. Competitors such as Rohde & Schwarz and National Instruments also offer similar products and solutions, which limits Keysight's pricing power.
Furthermore, the commoditization of certain test and measurement products could erode Keysight's moat over time. As technology matures, the barriers to entry may decrease, and customers may become more price-sensitive. Therefore, Keysight must continue to differentiate itself through innovation, superior customer service, and a comprehensive product portfolio to maintain its competitive position.
Financial Health & Profitability
Keysight's financial health exhibits a mixed picture. The company demonstrates strong profitability metrics, with a gross margin of 62.3%, an operating margin of 16.4%, and a net margin of 16.1%. These figures significantly outperform the sector averages, which are 51.2%, -0.5%, and -1.5%, respectively. The company's ROE of 14.5% is also healthy, especially compared to the sector average of -1.5%. This indicates efficient use of equity to generate profits.
Revenue growth has been robust, with a TTM revenue growth rate of 31.5%, substantially exceeding the sector average of 14.0%. This growth is evident in the quarterly financial history, with revenue consistently above $1.2 billion. However, the growth rate has fluctuated, indicating potential cyclicality or sensitivity to macroeconomic conditions.
The balance sheet reveals a moderate level of leverage, with a debt-to-equity ratio of 41.00, which is slightly below the sector average of 43.00. The company has a healthy current ratio of 2.60, indicating strong liquidity and the ability to meet its short-term obligations. The company holds a substantial cash balance of $1.87 billion, providing financial flexibility for acquisitions, investments, or share repurchases.
However, the company's free cash flow is not provided, making it difficult to assess its cash-generating ability. The absence of this metric is a significant limitation in evaluating the company's financial health. The trend in operating margin shows some volatility, decreasing from 24.9% in FY2023 to 16.3% in FY2025, suggesting potential margin pressure. This decline warrants further investigation to understand the underlying drivers.
Valuation Assessment
Keysight's valuation is a significant concern. The company's P/E ratio of 169.2x is extremely high compared to the sector average of 45.3x. This suggests that the stock is significantly overvalued relative to its earnings. Similarly, the company's EV/EBITDA multiple of 50.5x is substantially higher than the sector average of 13.0x, further reinforcing the overvaluation concern.
Given the high multiples, the market appears to be pricing in significant future growth for Keysight. However, the company's historical growth rate, while strong, may not be sustainable in the long term. The technology industry is subject to rapid change and intense competition, which could limit Keysight's ability to maintain its current growth trajectory. The recent decline in operating margin also raises concerns about the company's ability to sustain its profitability.
Without free cash flow data, it is difficult to assess the company's valuation using a discounted cash flow (DCF) analysis. However, based on the available information, it appears that the stock is trading at a premium to its intrinsic value. The high valuation implies that investors are expecting exceptional performance from Keysight, and any disappointment could lead to a significant correction in the stock price.
A more reasonable valuation would be justified if Keysight could demonstrate a clear path to sustained high growth and margin expansion. However, given the competitive landscape and the potential for technological disruption, this is not guaranteed. Therefore, investors should exercise caution and consider the downside risks associated with the company's high valuation.
Risk & Uncertainty
Keysight faces several risks that could impact its future performance. One of the primary risks is the cyclical nature of the semiconductor and electronics industries. Demand for Keysight's products is closely tied to the capital spending of its customers, which can fluctuate significantly based on macroeconomic conditions and industry trends. A slowdown in the global economy or a decline in capital spending could negatively impact Keysight's revenue and profitability.
Another risk is the intense competition in the electronic design and test solutions market. Keysight competes with a number of large and well-established companies, as well as smaller, more specialized players. The company must continually innovate and develop new products to maintain its competitive advantage. Failure to do so could result in market share losses and reduced profitability.
Technological obsolescence is also a significant risk. The technology industry is characterized by rapid change, and Keysight's products could become obsolete if the company fails to keep pace with the latest advancements. The company must invest heavily in research and development to stay ahead of the curve and anticipate future market needs. The company's reliance on specific industries, such as telecommunications, also presents a concentration risk. A downturn in these industries could disproportionately impact Keysight's revenue.
Bulls Say / Bears Say
The Bull Case
BULL VIEWKeysight's strong position in the growing 5G and IoT markets will drive sustained revenue growth and margin expansion.
BULL VIEWThe company's high gross margins and efficient operations demonstrate its ability to generate strong profits and returns on capital.
BULL VIEWKeysight's large cash balance provides ample flexibility for strategic acquisitions and share repurchases, enhancing shareholder value.
The Bear Case
BEAR VIEWKeysight's extremely high valuation multiples leave little room for error and expose investors to significant downside risk.
BEAR VIEWThe cyclical nature of the semiconductor industry could lead to a sharp decline in revenue and profitability during economic downturns.
BEAR VIEWIncreasing competition from lower-cost providers could erode Keysight's market share and pricing power.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score KEYS and 4,400+ other equities.
Keysight Technologies, Inc. exhibits a 333% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
7.8%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
62.3%
Sector: 50.9%
Operating Margin
Core business profitability
16.4%
Sector: -0.5%
Net Margin
Bottom-line profitability
16.1%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
