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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 impressive Q1 FY2026 report, which included a significant earnings beat, with EPS of $2.17 per share, surpassing the Zacks Consensus Estimate of $1.99 per share. The company's growth was fueled by rising demand for AI infrastructure, with its stock hitting an all-time high. Strategic moves and strength across segments contributed to revenue growth. Additionally, institutional investors, such as Fenimore Asset Management Inc. and Daiwa Securities Group Inc., have been increasing their stakes in the company.

1.c. Company Highlights

2. Keysight's Q1 FY2026 Earnings: A Strong Start to the Year

Keysight Technologies delivered a robust first quarter, with revenue reaching $1.600 billion, up 23% on a reported basis, and earnings per share (EPS) of $1.62, although slightly below the estimated $2. The company's gross margin expanded to 66.7%, up 90 basis points, driven by a favorable product mix. The revenue growth was fueled by strong demand across various business segments, including Communication Solutions and Electronic Industrial Solutions Group (EISG).

Publication Date: Feb -25

📋 Highlights

Segment Performance

The Communication Solutions segment saw robust order growth, outpacing revenue growth of 27% in the quarter, driven by both commercial communications and aerospace, defense, and government markets. The EISG segment also performed well, with orders growing for the third consecutive quarter and revenue reaching a record high. The strong performance was driven by double-digit growth across all three EISG markets: general electronics, semiconductors, and automotive and energy.

Guidance and Outlook

Keysight expects revenue to be in the range of $1.690 billion to $1.710 billion for the second quarter of 2026, representing 30% year-over-year growth at the midpoint. The company also expects EPS to be in the range of $2.27 to $2.33, representing 35% year-over-year growth at the midpoint. For the full fiscal year, Keysight expects all-in revenue growth of around 20%, with a moderate growth in the second half.

Valuation and Growth Prospects

With a P/E Ratio of 54.13 and an EV/EBITDA of 35.94, Keysight's valuation suggests that the market is pricing in significant growth prospects. Analysts estimate next year's revenue growth at 6.5%, which may be conservative given the company's current momentum. The company's ability to deliver on its growth prospects, particularly in areas such as AI and 5G, will be crucial in justifying its current valuation.

AI and Emerging Technologies

Keysight is well-positioned to benefit from emerging technologies, including AI, 5G, and non-terrestrial networks (NTN). The company's AI-related business saw robust order growth, and it is expanding its presence in the neoclouds segment. As Satish Dhanasekaran noted, "We're seeing concurrent parallel technology waves, with technologies like silicon photonics, optics, and electrical transmission driving innovation." This positions Keysight for long-term growth and potentially justifies its premium valuation.

3. NewsRoom

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Keysight: The Quiet Winner in the AI and Defense Spending Boom

Mar -18

Source: marketbeat.com

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Keysight Launches SBOM Manager to Help Organizations Prepare for Emerging Global Cybersecurity Regulations

Mar -18

Source: businesswire.com

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108,562 Shares in Keysight Technologies Inc. $KEYS Purchased by Danica Pension Livsforsikringsaktieselskab

Mar -18

Source: defenseworld.net

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Keysight Launches AI Inference Emulation Platform to Validate and Optimize AI Infrastructure

Mar -17

Source: businesswire.com

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Aquatic Capital Management LLC Sells 24,507 Shares of Keysight Technologies Inc. $KEYS

Mar -17

Source: defenseworld.net

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Keysight Advances AI Networking with Ultra Ethernet LLR and CBFC Interoperability Demonstration at OFC 2026

Mar -16

Source: businesswire.com

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Buy 3 S&P 500 Stocks Backed by Double-Digit Returns in the Past Month

Mar -16

Source: zacks.com

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Banco Bilbao Vizcaya Argentaria S.A. Acquires 40,492 Shares of Keysight Technologies Inc. $KEYS

Mar -16

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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Quality: 4.8

Yield: 8.0

Momentum: 1.5

Volatility: 6.3

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A-Score: 5.5/10

Value: 3.4

Growth: 5.7

Quality: 7.4

Yield: 5.0

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Corning

A-Score: 4.8/10

Value: 0.9

Growth: 2.6

Quality: 5.2

Yield: 4.0

Momentum: 9.5

Volatility: 6.7

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Keysight Technologies

A-Score: 4.7/10

Value: 1.5

Growth: 5.1

Quality: 7.7

Yield: 0.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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A-Score: 4.6/10

Value: 3.4

Growth: 4.6

Quality: 6.7

Yield: 0.0

Momentum: 4.0

Volatility: 9.0

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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

284.12$

Current Price

284.12$

Potential

-0.00%

Expected Cash-Flows