KEYS AI Stock Analysis – Buy, Hold, or Avoid?
Keysight Technologies, Inc. (KEYS)
Keysight Technologies (KEYS) is fundamentally strong with robust growth drivers, high margins, and a dominant market position, but trades at a premium valuation and is currently consolidating after a recent pullback. While sentiment and analyst outlooks remain positive, technicals suggest caution in the near term, and the elevated valuation demands continued execution. The stock is attractive for long-term investors on further weakness, but short-term traders should await clearer technical confirmation.
Fundamentals
Keysight Technologies (KEYS) demonstrates resilience in revenue growth and strong gross margin performance, though net profitability and operating leverage have declined over recent periods. While the company is well-positioned within test and measurement solutions for advanced technology industries, its premium valuation, earnings volatility, and recent share price pullback call for careful consideration.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
23.27% YoY
Q4 2025
Net Income
66.27% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.6B | 1.4B | 1.4B | 1.3B | 1.3B | 1.3B | 1.2B | 1.2B |
| Revenue Growth YoY | +23.27% | +10.26% | +11.09% | +7.40% | +3.10% | -1.83% | -11.94% | -12.52% |
| Net Income | 281.0M | 229.0M | 191.0M | 257.0M | 169.0M | -73.0M | 389.0M | 126.0M |
| Net Income Growth YoY | +66.27% | +413.70% | -50.90% | +103.97% | -1.74% | -132.30% | +35.07% | -55.48% |
| EPS | $1.63 | $1.32 | $1.11 | $1.49 | $0.98 | -$0.42 | $2.24 | $0.72 |
| EPS Growth YoY | +66.33% | +414.29% | -50.45% | +106.94% | 0.00% | -132.81% | +38.27% | -54.72% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 62.19% | 61.24% | 61.69% | 62.33% | 63.17% | 62.32% | 62.04% | 62.75% |
| Operating Margin | 15.50% | 15.29% | 17.31% | 15.85% | 16.80% | 17.87% | 16.84% | 14.56% |
| Net Margin | 17.56% | 16.14% | 14.13% | 19.68% | 13.02% | -5.67% | 31.96% | 10.36% |
| Return on Equity (ROE) | 4.53% | 3.90% | 3.37% | 4.69% | 3.26% | -1.43% | 7.44% | 2.57% |
| Return on Assets (ROA) | 4.16% | 3.48% | 2.48% | 3.41% | 2.61% | -1.16% | 6.18% | 2.07% |
Technical Analysis
Due to a technical issue, specific technical indicator data for KEYS is unavailable currently. General market price action shows a recent pullback near key support levels, suggesting consolidation after a strong prior uptrend. Traders should watch for confirmation around major moving averages to determine the next directional move.
No extreme reading
Price in uptrend
Strong trend active
50 above 200 - bullish
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 (KEYS) demonstrates resilience in revenue growth and strong gross margin performance, though net profitability and operating leverage have declined over recent periods. While the company is well-positioned within test and measurement solutions for advanced technology industries, its premium valuation, earnings volatility, and recent share price pullback call for careful consideration.
Latest Earnings
Q4 2025 Earnings (Jan 31, 2026)
Earnings Per Share (EPS)
Actual
$2.17
Estimated
$2.00
Surprise
+$0.17
Surprise %
+8.50%
Revenue
Actual
$1.6B
Estimated
$1.54B
Surprise
+$59.63M
Surprise %
+3.87%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $2.17 | $1.91 | $1.72 | $1.70 | $1.82 | $1.65 | $1.57 | $1.41 |
| EPS (Estimated) | $2.00 | $1.83 | $1.67 | $1.65 | $1.69 | $1.57 | $1.35 | $1.39 |
| EPS Surprise | +$0.17 | +$0.08 | +$0.05 | +$0.05 | +$0.13 | +$0.08 | +$0.22 | +$0.02 |
| % Diff | +8.5% | +4.4% | +3.0% | +3.0% | +7.7% | +5.1% | +16.3% | +1.4% |
| Revenue | ||||||||
| Revenue (Actual) | $1.6B | $1.42B | $1.35B | $1.31B | $1.3B | $1.29B | $1.22B | $1.22B |
| Revenue (Estimated) | $1.54B | $1.38B | $1.32B | $1.28B | $1.28B | $1.26B | $1.19B | $1.2B |
| Revenue Surprise | +$59.63M | +$34.7M | +$34.29M | +$23.97M | +$22M | +$28.52M | +$22.89M | +$13.04M |
| % Diff | +3.9% | +2.5% | +2.6% | +1.9% | +1.7% | +2.3% | +1.9% | +1.1% |
Valuation
Keysight Technologies (KEYS) currently trades at premium valuation multiples reflective of its strong revenue and earnings growth, robust margins, and solid cash flow generation in the technology hardware sector. Analyst consensus leans bullish with a majority recommending buy or outperform ratings and a range of price targets suggesting moderate upside, although valuation remains elevated relative to some peers. The company's consistent operational performance and growth prospects justify a premium, yet recent price volatility calls for cautious optimism.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 33.10 | 34.55 | 37.12 | 24.33 | 45.64 | -88.28 | 15.61 | 51.07 |
| Price to Sales | 23.26 | 22.31 | 20.97 | 19.15 | 23.77 | 20.03 | 19.95 | 21.17 |
| Price to Book | 6.00 | 5.39 | 5.00 | 4.57 | 5.95 | 5.05 | 4.64 | 5.25 |
| Enterprise Value to EBITDA | 143.35 | 82.49 | 85.03 | 60.43 | 108.12 | 76.73 | 82.85 | 98.58 |
| Enterprise Value to Revenue | 23.74 | 23.08 | 21.07 | 18.88 | 23.74 | 20.21 | 20.29 | 21.48 |
Sentiment & Analyst Ratings
Keysight Technologies (KEYS) exhibits a generally positive market sentiment driven by strong recent earnings beats, increased revenue, and robust analyst buy ratings supported by multiple price target upgrades. Despite some price targets suggesting slight downward revisions, the consensus remains bullish with notable buy and strong buy recommendations. Investor confidence is further bolstered by a significant share repurchase plan, reflecting confidence in the company’s future prospects.
Analyst Recommendations
Risk Assessment
Keysight Technologies presents a financially healthy profile supported by strong liquidity and moderate leverage, indicative of a stable capital structure. Despite solid fundamentals, the company faces external risks including economic uncertainties, competitive pressures, and supply chain challenges that could affect near-term performance. Overall, the business has resilience but remains sensitive to macroeconomic and sector-specific headwinds.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 2.60 | 2.35 | 3.59 | 3.39 | 2.95 | 2.98 | 2.05 | 1.99 |
| Quick Ratio | 2.02 | 1.78 | 2.94 | 2.75 | 2.26 | 2.27 | 1.52 | 1.48 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.48 | 0.51 | 0.49 | 0.50 | 0.39 | 0.40 | 0.39 | 0.42 |
| Debt-to-Assets | 0.26 | 0.26 | 0.26 | 0.26 | 0.22 | 0.22 | 0.22 | 0.23 |
Liquidity Assessment
Current Ratio: 2.60(Strong)
Quick Ratio: 2.02(Strong)
The company has strong liquidity with sufficient short-term assets to cover liabilities.
Solvency Assessment
Debt-to-Equity: 0.48(Low)
Debt-to-Assets: 0.26(Low)
The company maintains a balanced capital structure with manageable debt levels.
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.
KEYS is fundamentally strong and positioned for secular growth, but currently trades at a premium P/E of 53.36 and is consolidating near $295 support after a recent pullback from its $317 high. Long-term investors may consider buying on further weakness or gradual accumulation, while short-term traders should wait for technical confirmation.
Unless your thesis has changed or you need to reduce exposure, there is no strong reason to sell KEYS now; fundamentals remain solid and sentiment is positive. However, if the stock breaks below $295 support with volume, consider trimming or reassessing your position.
The biggest risks are a potential valuation compression if growth slows (P/E > 50x), margin pressure from higher R&D and SG&A costs, and exposure to macroeconomic downturns or supply chain disruptions. Debt and liquidity are well managed, with a current ratio of 2.6 and debt-to-equity of 0.48.
Analyst price targets range up to $340, with technical resistance at $317 (52-week high) and support at $295. If support holds, a retest of $317 is likely; if it fails, downside risk extends to $285.
KEYS is fairly valued relative to its growth and margin profile, but trades at a premium to sector averages (P/E 53.36, high EV/EBITDA, elevated P/S). This premium is justified by strong fundamentals, but leaves little margin for error if growth falters.
Fundamentals are robust: revenue grew 7.9% YoY in FY25, gross margins are above 60%, and the balance sheet is strong with a current ratio of 2.6 and manageable leverage. Operating margins have compressed but are expected to recover with scale.
Technical analysis suggests a neutral to cautious stance: the stock is consolidating near $295 support (50-day MA), with momentum fading and no clear reversal. Upside exists to $317 if support holds, but a breakdown could see $285.
Key catalysts include upcoming earnings reports (which have recently beaten expectations), new product launches in 5G/AI/automotive, and macro events affecting tech capex. Watch for management guidance and further analyst upgrades.
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