KEYS AI Stock Analysis – Buy, Hold, or Avoid?
Keysight Technologies, Inc. (KEYS)
Keysight Technologies is fundamentally strong with robust growth, margin expansion, and leadership in advanced test solutions, but trades at a premium valuation near all-time highs. While technical momentum and sentiment are positive, elevated multiples and macro/sector risks temper near-term upside. The stock is best held for compounding by existing investors, with new entries advised to wait for a more attractive valuation or technical pullback.
Fundamentals
Keysight Technologies is exhibiting robust financial performance with consistent top-line growth and margin expansion, underpinned by strong execution evident in consecutive quarterly revenue and earnings beats. The company is well-positioned to capitalize on secular trends in advanced electronics testing, though its elevated valuation warrants a balanced perspective.
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 currently in a strong uptrend, evidenced by price trading well above key moving averages with a golden cross active. Momentum is building moderately with the RSI in a neutral zone and the ADX indicating a developing trend. The stock is close to its 52-week high, suggesting bullish strength but also nearing potential resistance.
No extreme reading
Price in uptrend
Trend developing
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 is exhibiting robust financial performance with consistent top-line growth and margin expansion, underpinned by strong execution evident in consecutive quarterly revenue and earnings beats. The company is well-positioned to capitalize on secular trends in advanced electronics testing, though its elevated valuation warrants a balanced perspective.
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 is currently trading near its 52-week high with solid revenue and earnings growth, reflecting strong underlying fundamentals and favorable market sentiment. Analyst consensus leans toward a moderate buy, supported by optimistic earnings guidance and technical patterns indicating further upside potential.
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) is currently enjoying strong positive momentum, highlighted by record-high earnings, robust revenue growth, and a seven-day consecutive stock price advance hitting a new 52-week high. Analyst sentiment is moderately bullish with a consensus "Moderate Buy" rating and multiple raised price targets, reflecting optimism on AI-driven demand and next-generation communications technologies. Retail investors mirror this positivity, driven by impressive financial results and technical bullishness, though some caution arises from insider selling and tariff-related risks.
Analyst Recommendations
Risk Assessment
Keysight Technologies presents a financially solid profile with strong liquidity and moderate leverage, underscored by its healthy ability to cover short-term obligations and manageable long-term debt levels. However, the stock trades at a premium valuation amid significant market expectations tied to growth in AI, 5G, and software, which adds execution risk especially in a complex geopolitical environment. Ongoing regulatory compliance and competitive pressures further complicate its risk landscape, suggesting cautious optimism for investors.
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 not a compelling buy right now for new investors, as it trades at $324.18—right at its 52-week high and with a P/E of 57.17, reflecting high growth expectations. While fundamentals are strong, the risk of a short-term pullback or valuation compression is elevated. Waiting for a dip or technical consolidation would offer a better entry.
There is no fundamental reason to sell if you already own KEYS, as the company continues to deliver strong earnings and maintain leadership in its sector. However, if you are risk-averse or overweight, trimming at these levels could be justified given the technical overextension and premium valuation.
The biggest risks are the elevated valuation (P/E 57.17, high EV/EBITDA), which could compress if growth disappoints, and exposure to cyclical end-markets like telecom and semiconductors. Additional risks include macroeconomic uncertainty, regulatory changes (especially in AI/cybersecurity), and integration risk from acquisitions, though liquidity and leverage remain well-managed (current ratio 2.6, debt/equity 0.48).
Immediate resistance is at $325.55; a decisive breakout could target $340-$345, as per technical analysis and recent analyst upgrades. Downside support is at $272 (50 SMA) and $203-216 (200/150 SMAs). Analyst targets cluster around $340, but upside is limited unless growth accelerates further.
The stock is fairly valued to slightly overvalued, with a P/E of 57.17 and high P/S and EV/EBITDA multiples compared to sector averages. This premium is justified by strong growth and margins, but leaves little room for error or multiple expansion unless growth outpaces expectations.
Keysight is fundamentally strong, with 8% YoY revenue growth, 38% net income growth, gross margins above 62%, and improving ROE (15%+). The balance sheet is robust, with a current ratio of 2.6 and moderate leverage, supporting continued investment in innovation.
Technically, KEYS is in a strong uptrend above all major moving averages, with a golden cross active and RSI at 69.6 (near overbought). Immediate resistance is at $325.55; a breakout could drive a move to $340-$345, but a pullback or consolidation is likely in the near term.
Key catalysts include upcoming earnings reports, new product launches in AI/6G/automotive testing, and potential macro events affecting tech capex. Watch for a breakout above $325.55 with volume, as well as continued analyst upgrades and raised guidance.
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