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1. Company Snapshot

1.a. Company Description

Keysight Technologies, Inc.provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific.Its Communications Solutions Group segment provides electronic design automation (EDA) software; radio frequency and microwave test solutions, and related software; hardware and virtual network test platforms and software applications, including data center, routing and switching, software defined networking, security, and encryption; oscilloscopes, logic and serial protocol analyzers, logic-signal sources, arbitrary waveform generators, and bit error rate testers; and optical modulation analyzers, optical component analyzers, optical power meters, and optical laser source solutions, as well as resells refurbished used Keysight equipment.


The company's Electronic Industrial Solutions Group segment offers design tools; design verification tools; and digital multimeters, function generators, frequency counters, data acquisition systems, audio analyzers, LCR meters, thermal imagers, source measure units, ultra-high precision device current analyzers, and test executive software platforms, as well as various power supplies comprising AC/DC modular supplies and electronically programmable loads.This segment also provides printed-circuit-board-assembly testers, integrated circuit parametric testers, and sub-nano-meter positioning sub-assemblies; and test and measurement products and software.The company offers product support, technical support, and training and consulting services.


It sells its products through direct sales force, distributors, resellers, and manufacturer's representatives.Keysight Technologies, Inc.was founded in 1939 and is headquartered in Santa Rosa, California.

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1.b. Last Insights on KEYS

Keysight Technologies' recent performance was driven by its strong Q4 earnings report, which beat analyst estimates on both top and bottom lines. The company's quarterly earnings of $1.91 per share surpassed the Zacks Consensus Estimate of $1.85 per share. New collaborations, product launches, and acquisitions have driven expectations for revenue and earnings growth. Analysts have increased their forecasts for the company following the better-than-expected Q4 results. The company's position in the electronic design and test solutions industry has been highlighted as a standout.

1.c. Company Highlights

2. Keysight Technologies' Strong FY2025 Results Driven by AI and Accelerated Compute Demand

Keysight Technologies reported a robust fourth quarter, with revenue increasing 10% and EPS rising 16% to $1.91, beating estimates of $1.83. For fiscal 2025, the company saw orders and revenue grow 8%, with EPS increasing 14%. The strong performance was driven by leadership and solutions across markets, particularly in AI, accelerated compute, and defense modernization. The company's record free cash flow of $1.3 billion in fiscal 2025 was a notable highlight, with approximately $375 million returned to shareholders through buybacks.

Publication Date: Nov -25

📋 Highlights
  • Q4 Revenue and EPS Outperformance:: Revenue grew 10% to $1.53B-$1.55B, EPS rose 16%, driven by double-digit order growth across segments and AI/wireline demand.
  • Fiscal 2025 Strong Growth:: Orders and revenue increased 8%, EPS up 14%, with $1.3B record free cash flow funding $375M buybacks and $1.5B share repurchase authorization.
  • Strategic Acquisitions Impact:: Spirent, Synopsys, and ANSYS acquisitions added $375M revenue and $100M in synergies, enhancing AI, automotive, and defense portfolios.
  • Fiscal 2026 Guidance:: Revenue target of $1.53B–$1.55B (19% YoY growth) and EPS growth ≥10%, supported by AI-driven wireline growth and 60–90-day order pipeline.
  • AI and Semiconductor Momentum:: Wireline business grew double-digits, with 50% driven by AI ecosystems, while semiconductor and EISG segments saw sustained order strength.

Segment Performance

The Communication Solutions Group saw orders grow for the sixth straight quarter, with double-digit order growth and high single-digit revenue growth. The Electronic Industrial Solutions Group also reported order and revenue growth in Q4 and for the full year, driven by strength in semiconductor and general electronics. These segments' performance was a key contributor to the company's overall growth, with the wireline business having a record year, growing double digits, and roughly half of it seeing an impact from the AI ecosystem.

Guidance and Outlook

For fiscal 2026, Keysight expects revenue in the range of $1.53 billion to $1.55 billion, representing 19% year-over-year growth at the midpoint, and EPS growth at or above the long-term 10% target. The company expects the recent acquisitions to contribute approximately $375 million of revenue and be accretive to earnings twelve months post-close. With a robust pipeline and visibility into 60 to 90 days, Keysight is well-positioned for continued growth, driven by AI investment wave in wireline and growth in wireless.

Valuation and Metrics

With a P/E Ratio of 36.33 and P/S Ratio of 7.72, Keysight's valuation reflects its strong growth prospects. The company's ROE of 15.24% and Free Cash Flow Yield of 4.93% are also notable. As the company continues to invest in R&D, with R&D intensity approaching 19% of sales, and drive growth through acquisitions, its fundamentals remain intact, with a strong performance in Q4 driven by growth in aerospace and defense, automotive, and wireline businesses.

Acquisition Synergies and Integration

The acquisition of Spirent is expected to add positioning capabilities, enhancing the portfolio, particularly in automotive, aerospace defense, and wireless markets. Keysight expects $100 million in run-rate synergies from acquisitions, with most coming from synergies during integration, which takes 12 to 18 months. The company's software and services segment is expected to grow, with a target to reach 40% of revenue, driven by acquisitions, including Optical Solutions Group and Spirent.

3. NewsRoom

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Keysight Introduces New Handheld Analyzer Enabling 120-MHz IQ Streaming for Gap-Free Signal Capture

Dec -04

Source: businesswire.com

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Keysight Technologies, Inc. (KEYS) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Up Over 20% in 2025, These 3 Stocks Are Boosting Buyback Capacity

Dec -01

Source: marketbeat.com

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Keysight Technologies Inc. $KEYS Shares Sold by BLI Banque de Luxembourg Investments

Dec -01

Source: defenseworld.net

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Consumer Tech News (Nov 24-28): Lawmakers Target Meta Over Alleged Fraudulent Ads, U.S. Pushes Taiwan To Boost Chipmaking Investment In America & More

Nov -30

Source: feeds.benzinga.com

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Cetera Investment Advisers Trims Stake in Keysight Technologies Inc. $KEYS

Nov -29

Source: defenseworld.net

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Keysight Technologies' Surge: The Market Wakes Up to This AI Play

Nov -27

Source: marketbeat.com

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Keysight Technologies Inc. $KEYS Shares Sold by Bell Asset Management Ltd

Nov -27

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Communications Solutions Group

Expected Growth: 3.0%

The 3.0% growth of Communications Solutions Group from Keysight Technologies, Inc. is driven by increasing demand for 5G and 6G research and development, growing adoption of IoT devices, and rising need for network testing and optimization. Additionally, the segment benefits from Keysight's strong position in the wireless communications market and its ability to provide comprehensive solutions for communication infrastructure and device manufacturers.

Electronic Industrial Solutions Group

Expected Growth: 3.0%

The 3.0% growth of Electronic Industrial Solutions Group from Keysight Technologies, Inc. is driven by increasing demand for 5G and IoT devices, rising adoption of Industry 4.0 technologies, and growing need for electronic design and test solutions in the industrial automation and aerospace industries.

7. Detailed Products

PathWave Design

A software platform that integrates design, simulation, and analysis capabilities for RF, microwave, and high-speed digital design

Vector Network Analyzers

High-performance measurement instruments for characterizing the properties of materials and devices

Signal Generators

High-performance signal sources for generating complex waveforms and signals

Oscilloscopes

High-speed measurement instruments for capturing and analyzing signals

Logic Analyzers

Tools for capturing and analyzing digital signals and protocols

Protocol Analyzers

Tools for capturing and analyzing communication protocols

Automated Test Equipment

Customizable test systems for manufacturing and production testing

5G Test Solutions

Comprehensive test solutions for 5G device and network testing

Aerospace and Defense Solutions

Customized test and measurement solutions for aerospace and defense applications

8. Keysight Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Keysight Technologies, Inc. has a moderate threat of substitutes due to the presence of alternative testing and measurement solutions from competitors.

Bargaining Power Of Customers

Keysight Technologies, Inc. has a low bargaining power of customers due to its strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

Keysight Technologies, Inc. has a moderate bargaining power of suppliers due to its dependence on a few key suppliers for critical components.

Threat Of New Entrants

Keysight Technologies, Inc. has a low threat of new entrants due to the high barriers to entry in the testing and measurement industry.

Intensity Of Rivalry

Keysight Technologies, Inc. operates in a highly competitive industry with intense rivalry among established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.33%
Debt Cost 4.94%
Equity Weight 69.67%
Equity Cost 9.24%
WACC 7.94%
Leverage 43.53%

11. Quality Control: Keysight Technologies, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Amphenol

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Yield: 1.0

Momentum: 9.5

Volatility: 7.3

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A-Score: 5.2/10

Value: 3.4

Growth: 5.8

Quality: 7.2

Yield: 4.0

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Corning

A-Score: 4.9/10

Value: 0.8

Growth: 2.6

Quality: 5.3

Yield: 4.0

Momentum: 9.5

Volatility: 7.3

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A-Score: 4.4/10

Value: 3.4

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Quality: 6.5

Yield: 0.0

Momentum: 3.0

Volatility: 9.0

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Keysight Technologies

A-Score: 4.3/10

Value: 1.2

Growth: 4.0

Quality: 7.3

Yield: 0.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

210.49$

Current Price

210.49$

Potential

-0.00%

Expected Cash-Flows