Keysight Technologies (KEYS)
Information Technology · $49.2B market cap · SEC CIK 0001601046
ahead of 47% of the S&P 500 · #42 of 73 in Information Technology
Next reports on Nov 19, 2026, after the close, with analysts expecting $3.44 in earnings per share.
52-week range $167.23 to $389.93. 25% below its 52-week high and 74% above its low.
The case for KEYS
- Revenue up 25.5% on the year.
- Generated $1.3B of free cash flow in FY2025, 24% of revenue.
- Earnings per share up 131.8%.
- Return on equity of 20%.
- Gross margin of 65% absorbs cost shocks.
- Current assets cover the near-term bills 2.0 times over.
The case against
- Pricey for its growth: 39.0× earnings, where 13% a year of growth would justify about 27×.
- Weakest against its peers: price/sales of 7.5× is higher than 65% of Information Technology companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 39 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 56 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 62 |
| Momentumhow the price has behaved lately | 56 |
| Stabilityhow violently it moves, what it owes and what it pays you | 66 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +25.5% |
|---|---|
| Over 5 years | +5.0% a year |
| FY2025 revenue | $5.4B (+8%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $1.3B |
|---|---|
| Of revenue | 24% |
| Of profit | 151% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 65% |
|---|---|
| Operating margin | 20% |
| Net margin, FY24 → FY25 → now | 12.3% → 15.8% → 19.1% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $1.9B |
|---|---|
| Long-term debt | $2.5B |
| Net debt | $661M |
| Years to repay | 1.8 yrs |
Valuation
Is the stock price reasonable? A bit pricey
| P/E | 39.0× |
|---|---|
| Fair P/E for its growth | 27× |
| P/FCF | 38.4× |
| Forward P/E | 25.4× |
| EV / EBITDA | 33.1× |
At 39.0× earnings it trades above the 27× that 13% a year of growth would justify. At 38.4× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Keysight Technologies's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $5.4B | $5.0B | $5.5B | $5.4B | $4.9B |
| Change on the year | +8% | −9% | +1% | +10% | — |
| Free cash flow | |||||
| Free cash flow | $1.3B | $898M | $1.2B | $959M | $1.1B |
| Of revenue | 24% | 18% | 22% | 18% | 23% |
| Profit margins | |||||
| Operating margin | 16.3% | 16.7% | 24.9% | 24.6% | 21.9% |
| Net margin | 15.8% | 12.3% | 19.3% | 20.7% | 18.1% |
| Debt vs. cash | |||||
| Cash | $1.9B | $1.8B | $2.5B | $2.0B | $2.1B |
| Long-term debt | $2.5B | $1.8B | $1.2B | $1.8B | $1.8B |
| Net cash (debt) | −$661M | $6.0M | $1.3B | $249M | $261M |
What Keysight Technologies says it does
Overview Keysight Technologies, Inc. (“we,” “us,” “our,” “Keysight” or “the company”), incorporated in Delaware on December 6, 2013, is a global innovator in the computing, communications and electronics markets, committed to advancing our customers’ business success by helping them solve critical challenges in the development and commercialization of their products and services. Our mission, “accelerating innovation to connect and secure the world,” speaks to the value we provide our customers in a world of ever-increasing technological complexity. We deliver this value through a broad range of design and test solutions that enable our customers to bring their innovations to market on ever-shorter schedules. Keysight’s portfolio of hardware, software, and services enables our customers’ workflows as they design, validate, manufacture, deploy, and optimize their products and solutions. Our revenue is derived primarily from solutions…
Risk factors KEYS lists in its 10-K
- Risks, Uncertainties and Other Factors That May Affect Future Results
- Volatility and uncertainty in general economic conditions may adversely affect our operating results and financial condition
- Economic, political, and other risks associated with international sales and operations could adversely affect our results of operations
- Volatile geopolitical turmoil, including popular uprisings, regional conflicts, terrorism and war could result in market instability, which could negatively impact our business results
- Our operating results and financial condition could be harmed if the markets into which we sell our solutions decline or do not grow as anticipated
- A decreased demand for our customers’ products or trade barriers or restrictions could adversely affect our results of operations
- Our future operating results may fluctuate significantly if our investments in innovative technologies are not as profitable as we anticipate
- Failure to adjust our purchases due to changing market conditions or failure to estimate our customers
- demand could adversely affect our income
- Our operating results may suffer if our manufacturing capacity does not match the demand for our solutions
- Key customers or large orders may expose us to additional business and legal risks that could have a material adverse impact on our operating results and financial condition
- Industry consolidation and consolidation among our customer base may lead to increased competition and may harm our operating results
- Our acquisitions, strategic alliances, joint ventures, internal reorganizations and divestitures may result in financial results that are different than expected
- Any inability to complete acquisitions on acceptable terms could negatively impact our growth rate and financial performance
- We have outstanding debt and may incur other debt in the future, which could adversely affect our financial condition, liquidity and results of operations
- Volatility in currency exchange rates could adversely impact our financial results
- Our effective tax rate may be adversely impacted by changes in our business mix or changes in the tax legislative landscape
- If tax laws or incentives change or cease to be in effect, our income taxes could increase significantly
- If we suffer a loss to our factories, facilities or distribution system due to a catastrophic event, including events caused by the effects of climate change, our operations could be significantly harmed
- Our commitment to net zero emissions in company operations by fiscal year 2040 will be subject to significant costs and regulations, which could impact business operations, processes, revenue, and reputation
- Third parties may claim that we are infringing their intellectual property rights, and we could suffer significant litigation or licensing expenses or be prevented from selling solutions or services
- Third parties may infringe our intellectual property rights, and we may suffer competitive injury or expend significant resources enforcing our intellectual property rights
- If we experience a significant cybersecurity attack or disruption in our IT systems or our products, our business, reputation, and operating results could be adversely affected
- Our business is exposed to risks associated with the use of AI tools
- Our business will suffer if we are not able to retain and hire key personnel
- If we fail to maintain satisfactory compliance with certain regulations, we may be subject to substantial negative financial consequences and civil or criminal penalties
- Failure to comply with anti-corruption laws could adversely affect our business and result in financial penalties
- Our business and financial results may be adversely affected by various legal and regulatory proceedings
- Our internal controls may be determined to be ineffective, which may adversely affect investor confidence in our company, the value of our stock, and our access to capital
- Adverse conditions in the global banking industry and credit markets may adversely impact the value of our cash investments or impair our liquidity
- Future investment returns on pension assets may be lower than expected or interest rates may decline, requiring us to make significant additional cash contributions to our future plans
- Our share price may fluctuate significantly
- We do not currently pay dividends on our common stock
- Certain provisions in our amended and restated certificate of incorporation and bylaws, and of Delaware law, may prevent or delay an acquisition of the company, which could decrease the trading price of our common stock