KEYS AI Stock Analysis – Buy, Hold, or Avoid?
Keysight Technologies, Inc. (KEYS)
Fundamentals
Keysight Technologies has demonstrated robust revenue and earnings growth backed by strong gross margins and sustained operating leverage. The company’s recent quarters show solid quarter-over-quarter and year-over-year expansion, reflecting healthy demand for its electronic measurement hardware and software solutions, complemented by disciplined cost management and improving profitability metrics.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
31.47% YoY
Q1 2026
Net Income
35.80% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.7B | 1.6B | 1.4B | 1.4B | 1.3B | 1.3B | 1.3B | 1.2B |
| Revenue Growth YoY | +31.47% | +23.27% | +10.26% | +11.09% | +7.40% | +3.10% | -1.83% | -11.94% |
| Net Income | 349.0M | 281.0M | 229.0M | 191.0M | 257.0M | 169.0M | -73.0M | 389.0M |
| Net Income Growth YoY | +35.80% | +66.27% | +413.70% | -50.90% | +103.97% | -1.74% | -132.30% | +35.07% |
| EPS | $2.02 | $1.63 | $1.32 | $1.11 | $1.49 | $0.98 | -$0.42 | $2.24 |
| EPS Growth YoY | +35.57% | +66.33% | +414.29% | -50.45% | +106.94% | 0.00% | -132.81% | +38.27% |
Profitability Metrics
Technical Analysis
KEYS is in a constructive technical position evidenced by a Stage 2 uptrend and a golden cross formation, although the current price is slightly below the 50-day SMA, pointing to some short-term consolidation. Momentum indicators suggest a neutral phase, with an RSI near the midpoint and a weak ADX, indicating no strong directional momentum yet. Overall, price action reflects a build-up phase with institutional accumulation.
No extreme reading
Mixed signals
Range-bound market
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Keysight Technologies has demonstrated robust revenue and earnings growth backed by strong gross margins and sustained operating leverage. The company’s recent quarters show solid quarter-over-quarter and year-over-year expansion, reflecting healthy demand for its electronic measurement hardware and software solutions, complemented by disciplined cost management and improving profitability metrics.
Latest Earnings
Q1 2026 Earnings (Apr 30, 2026)
Earnings Per Share (EPS)
Actual
$2.87
Estimated
$2.32
Surprise
+$0.55
Surprise %
+23.71%
Revenue
Actual
$1.72B
Estimated
$1.71B
Surprise
+$11.25M
Surprise %
+0.66%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $2.87 | $2.17 | $1.91 | $1.72 | $1.70 | $1.82 | $1.65 | $1.57 |
| EPS (Estimated) | $2.32 | $2.00 | $1.83 | $1.67 | $1.65 | $1.69 | $1.57 | $1.35 |
| EPS Surprise | +$0.55 | +$0.17 | +$0.08 | +$0.05 | +$0.05 | +$0.13 | +$0.08 | +$0.22 |
| % Diff | +23.7% | +8.5% | +4.4% | +3.0% | +3.0% | +7.7% | +5.1% | +16.3% |
| Revenue | ||||||||
| Revenue (Actual) | $1.72B | $1.6B | $1.42B | $1.35B | $1.31B | $1.3B | $1.29B | $1.22B |
| Revenue (Estimated) | $1.71B | $1.54B | $1.38B | $1.32B | $1.28B | $1.28B | $1.26B | $1.19B |
| Revenue Surprise | +$11.25M | +$59.63M | +$34.7M | +$34.29M | +$23.97M | +$22M | +$28.52M | +$22.89M |
| % Diff | +0.7% | +3.9% | +2.5% | +2.6% | +1.9% | +1.7% | +2.3% | +1.9% |
Valuation
Keysight Technologies (KEYS) is currently trading at a premium valuation, supported by strong revenue and earnings growth, robust margins, and solid business fundamentals. Despite its elevated multiples relative to historical averages and sector peers, positive analyst sentiment and growth prospects underpin a cautiously optimistic view of the stock's valuation.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 43.31 | 33.18 | 34.65 | 36.92 | 24.40 | 45.50 | -88.70 | 15.58 |
| Price to Sales | 35.26 | 23.26 | 22.31 | 20.97 | 19.15 | 23.77 | 20.03 | 19.95 |
| Price to Book | 9.56 | 6.00 | 5.39 | 5.00 | 4.57 | 5.95 | 5.05 | 4.64 |
| Enterprise Value to EBITDA | 137.43 | 143.35 | 82.49 | 85.03 | 60.43 | 108.12 | 76.73 | 82.85 |
| Enterprise Value to Revenue | 35.46 | 23.74 | 23.08 | 21.07 | 18.88 | 23.74 | 20.21 | 20.29 |
Sentiment & Analyst Ratings
Keysight Technologies (KEYS) is currently experiencing broadly positive market sentiment, supported by strong analyst buy/strong buy recommendations and upbeat recent earnings reports. The company benefits from growth drivers in AI, next-gen connectivity, and innovative product developments, fueling bullish outlooks and price targets. Social sentiment is generally favorable, reflecting confidence in KEYS' market positioning and technological leadership.
Analyst Recommendations
Risk Assessment
Keysight Technologies shows a solid financial foundation supported by strong liquidity and moderate leverage. Recent risk factors include exposure to global economic conditions, geopolitical tensions, and regulatory compliance challenges, but the company benefits from robust revenue growth and positive analyst sentiment. While valuation is somewhat demanding, consistent earnings growth and strategic acquisitions support a cautious yet optimistic risk outlook for investors.
Liquidity & Solvency
Frequently Asked Questions about KEYS
AI Answers: Common Questions About KEYS
Get AI-powered answers to the questions investors ask most about Keysight Technologies, Inc.
Yes, KEYS is a good buy for medium to long-term investors due to 32% YoY revenue growth, 35% EPS growth, and expanding margins, despite a premium P/E of 36.8 and short-term technical consolidation.
Not recommended to sell currently; fundamentals and sentiment remain strong. Consider selling only if earnings disappoint or price breaks below key technical supports near $296 (150 SMA).
Key risks include cyclical demand in semiconductor and telecom sectors, supply chain issues, competitive pressures, and valuation sensitivity to growth execution.
Analyst consensus price targets average around $395, implying approximately 23% upside from current levels, with technical resistance near $333 (50 SMA) and $375 (52-week high).
The stock is currently overvalued relative to historical and sector averages, with elevated P/E and EV/EBITDA multiples reflecting high growth expectations but increasing downside risk if growth slows.
Strong fundamentals with accelerating revenue to $1.717B in Q1 2026, gross margins near 69%, operating margins around 24%, and consistent earnings beats demonstrate high-quality growth.
Technically, KEYS is in a bullish long-term uptrend but currently consolidating below the 50-day SMA at $333. Momentum indicators are neutral; a breakout above $333 would signal renewed short-term strength.
Upcoming catalysts include continued 5G/6G infrastructure growth, strategic contracts such as the ESA blockchain satellite project, and potential new product certifications driving revenue expansion.
Want a Personalized Answer?
Get AI-powered insights tailored to your risk tolerance and investment goals.