# Keysight Technologies Inc. (KEYS) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/KEYS/thesis · /stocks/KEYS/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/KEYS/fundamental

## Navigation

- Overview: /stocks/KEYS
- Financials (this page): /stocks/KEYS/financials
- Thesis: /stocks/KEYS/thesis
- Investment Memo: /stocks/KEYS/memo
- Coverage universe: /stocks