Keysight Technologies Inc.

KEYS
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$1.6B
Q1 FY2026 · +23.3% YoY
TTM ROIC
11.1%
FY2025 · NOPAT / Invested Capital (Total Equity + Total Debt - Excess Cash); NOPAT = EBIT × (1 - effective tax rate) · WACC ~9% · Moat spread +2.1pp

Financial Snapshot

ticker: KEYS step: 04 generated: 2026-05-12 source: quick-research

Keysight Technologies Inc. (KEYS) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $5.46B $5.46B $4.98B -8.8%
Gross Margin ~60% ~60% ~59% -1pp
Operating Margin ~22% ~21% ~15% -6pp
Net Income ~$0.95B ~$0.90B ~$0.52B -42%
EPS (diluted) $6.18 $5.91 $3.51 -41%

FY2024 net income/EPS depressed by Spirent acquisition costs and integration charges. FY2025 recovery: revenue $5.375B (+7.9%), net margin ~16.2%, EPS recovering toward pre-acquisition levels. TTM (Jan 2026): $5.677B (+13%). FY2026 guidance: revenue growth 5–9%; ongoing Spirent synergy realization ($100M+ target over 3 years).

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$0.95B
Free Cash Flow ~$0.80B
FCF Margin ~15%
Cash & Equivalents ~$1.5B
Total Debt ~$3.2B (post-Spirent acquisition financing)

Key Ratios (approximate, FY2025)

  • P/E: ~25–30x (on recovering earnings) | EV/EBITDA: ~18–20x | FCF Yield: ~2.5–3%
  • Revenue Growth (FY2025): +7.9% | Gross Margin: ~59–60%
  • Net Margin: ~16% | Software/Services ~30%+ of revenue (higher recurring mix)

Growth Profile

Keysight's FY2024 was a cyclical trough: the wireless capex pause (post-5G buildout peak), semiconductor capex digestion, and Spirent acquisition costs combined to depress revenue -8.8% and EPS -41%. FY2025 began the recovery, with AI data center demand (high-speed interconnect validation for 400G/800G/1.6T ethernet) emerging as a new growth driver alongside a resuming semiconductor test cycle. Long-term growth is driven by 5G/6G wireless infrastructure, advanced semiconductor node validation, and the Spirent network test integration expanding recurring software/services revenue.

Forward Estimates

  • FY2026: Revenue growth 5–9%; Spirent synergies contribute ~$30–40M to profitability; EPS recovery toward $7–8 range
  • FY2027+: 6G R&D cycle expected to drive new orders (H2 2027 and beyond); AI data center interconnect testing sustains demand; operating leverage from higher software/services mix drives margin expansion
  • Dividend: Modest; Keysight prioritizes buybacks over dividends; ~0.8% yield

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $KEYS.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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