KEYS AI Stock Analysis – Buy, Hold, or Avoid?
Keysight Technologies, Inc. (KEYS)
Keysight Technologies (KEYS) is fundamentally strong with robust growth, margin performance, and a leading industry position, but trades at a premium valuation that embeds high expectations. Technicals are bullish and sentiment is positive, yet valuation and cyclical risks temper the upside, making timing and entry price crucial. The stock is best suited for long-term accumulation on pullbacks, while short-term traders should be cautious of overbought conditions.
Fundamentals
Keysight Technologies continues to demonstrate robust fundamental strength, marked by steady revenue growth, improving earnings, and resilient profitability. The company has consistently exceeded analyst estimates and maintained solid margin performance, positioning it well among technology hardware peers. However, valuation remains stretched, suggesting the need for careful entry points.
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
KEYS is exhibiting a strong bullish technical profile, trading near its 52-week high with price comfortably above key moving averages and a confirmed golden cross. Momentum is solid, though RSI suggests the stock is approaching overbought territory. Recent price action includes a breakout watch above $359.97, signaling potential for continuation higher if the breakout sustains.
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 continues to demonstrate robust fundamental strength, marked by steady revenue growth, improving earnings, and resilient profitability. The company has consistently exceeded analyst estimates and maintained solid margin performance, positioning it well among technology hardware peers. However, valuation remains stretched, suggesting the need for careful entry points.
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 well above its industry peers and historical averages, reflecting strong growth expectations and robust profitability metrics. While the market sentiment remains cautiously optimistic with a general Buy consensus among analysts, valuation stretch and cyclical risks present underlying concerns. Overall, KEYS exhibits strong financial health and growth prospects but at a valuation that may limit upside without further earnings acceleration.
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 broadly positive sentiment, driven by strong recent earnings reports, strategic partnerships in emerging technologies like 6G and electric vehicle testing, and robust institutional buying. Analyst consensus leans moderately bullish with recent price target upgrades supporting momentum near its 52-week high. Despite some insider selling and mixed technical signals, investor confidence remains stable to improving with optimism surrounding future growth catalysts.
Analyst Recommendations
Risk Assessment
Keysight Technologies exhibits a strong liquidity position with robust current and quick ratios, indicating healthy short-term financial flexibility. Its moderate leverage and solid interest coverage suggest manageable long-term debt risk. However, the company faces sector-specific cyclical demand risks, geopolitical trade tensions, and regulatory compliance challenges that could impact future performance, despite growth opportunities in AI, 5G, and cloud software.
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.
Keysight is a fundamentally strong company, but at $360.30 with a P/E of 63.32 and trading near its 52-week high, the stock is overvalued relative to peers and its own history. It's a good long-term buy on pullbacks or gradual accumulation, but short-term entry is risky unless a breakout above $360-$367 is confirmed with volume.
If you already own KEYS, there is no fundamental reason to sell given the company's strong growth, margin expansion, and positive sentiment. However, if you are risk-averse or concerned about valuation compression, trimming into strength near resistance ($367-$370) may be prudent.
The biggest risks are valuation-driven downside if growth slows (P/E 63+), cyclical demand drops in tech hardware, and exposure to geopolitical/regulatory headwinds such as export controls. Sentinel notes moderate leverage (debt/equity ~0.48) and strong liquidity, so financial distress is unlikely.
Technical resistance is at $367-$370, with analyst price targets up to $384. Support zones are $348-$343 on pullbacks. Near-term upside is limited unless a breakout is confirmed, while downside risk increases if momentum fades.
KEYS is overvalued with a P/E of 63.32, EV/EBITDA and P/S ratios more than double sector averages, and trading well above its historical range. The premium reflects high growth expectations, but leaves little margin for error if growth decelerates.
Keysight is fundamentally robust: FY25 revenue grew 8% YoY to $5.38B, net income up 38% YoY, gross margins above 62%, and recurring software revenue provides resilience. The balance sheet is strong with a current ratio above 2.6 and interest coverage above 8.
Technicals are bullish: price is above all major moving averages, golden cross is active, and RSI is at 66.9 (near overbought). A breakout above $359.97 could target $367-$370, but caution is warranted as overextension could lead to a pullback to $348-$343 support.
Key catalysts include the upcoming Q2 FY26 earnings report, continued expansion in AI, 6G, and EV/auto testing, and new strategic partnerships. Macro events like sector rotation or regulatory changes could also impact the stock.
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