📊 KEYS Key Takeaways
Is Keysight Technologies, Inc. (KEYS) a Good Investment?
Keysight demonstrates exceptional financial health with 19% net margins, 26.5% free cash flow conversion, and conservative 0.40x leverage, making it a fundamentally sound business. However, flat revenue growth and moderate returns (10% ROE) indicate a mature, non-expanding operation that warrants investment interest primarily as a cash-generative asset rather than a growth vehicle.
Profitability and cash conversion are strong, with net income and EPS up sharply despite flat revenue, supported by ample liquidity and moderate leverage. Sustained operating discipline and FCF strength position the company to benefit when demand recovers, though low ROE and weak interest coverage limit conviction.
Keysight Technologies, Inc. Key Strengths (KEYS)
- Exceptional free cash flow generation at 26.5% FCF margin with $879M annually from $3.3B revenue
- Strong profitability with 19.7% operating margin and 19.0% net margin demonstrating operational excellence
- Conservative balance sheet with 0.40x debt-to-equity ratio and 6.8x interest coverage providing financial flexibility
- Asset-light business model with CapEx only 1.9% of revenue while generating substantial cash
- 39.9% EPS growth YoY driven by operational efficiency and capital allocation discipline
- Strong liquidity (current 2.60x, quick 2.02x) and sizable cash
- Robust free cash flow (25.4% margin) with low capex
- Earnings growth and healthy margins despite flat revenue
KEYS Stock Risks: Keysight Technologies, Inc. Investment Risks
- Zero revenue growth (0% YoY) suggests business stagnation or cyclical industry headwinds with no organic expansion
- Moderate return on equity of 10% and ROA of 5.4% indicate capital efficiency challenges despite strong margins
- Missing gross margin visibility limits ability to assess underlying product/service profitability trends
- Industrial measurement instruments sector exposure creates cyclicality risk dependent on economic conditions
- Significant insider activity (18 Form 4 filings in 90 days) warrants monitoring for management sentiment shifts
- Flat revenue signals end-market softness and limited near-term growth
- Low returns (ROE 4.5%, ROA 2.4%) indicate capital inefficiency
- Weak interest coverage (2.6x) reduces buffer against rate or profit pressure
Key Metrics to Watch
- Revenue growth rate and segment performance trends
- Gross margin and operating margin sustainability amid cost inflation
- Free cash flow consistency and capital allocation decisions (buybacks vs. debt reduction)
- Return on equity improvement trajectory and organic growth initiatives
- Debt reduction pace given strong FCF generation and current leverage levels
- Revenue growth (YoY)
- Interest coverage
Keysight Technologies, Inc. (KEYS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
KEYS Profit Margin, ROE & Profitability Analysis
KEYS vs Industrial Sector: How Keysight Technologies, Inc. Compares
How Keysight Technologies, Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Keysight Technologies, Inc. Stock Overvalued? KEYS Valuation Analysis 2026
Based on fundamental analysis, Keysight Technologies, Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Keysight Technologies, Inc. Balance Sheet: KEYS Debt, Cash & Liquidity
KEYS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Keysight Technologies, Inc.'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.91 reflects profitable operations.
KEYS Revenue Growth, EPS Growth & YoY Performance
KEYS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.3B | $257.0M | $1.49 |
| Q1 2026 | $1.3B | $169.0M | $0.97 |
| Q3 2025 | $1.2B | $191.0M | $1.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Keysight Technologies, Inc. Dividends, Buybacks & Capital Allocation
KEYS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Keysight Technologies, Inc. (CIK: 0001601046)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KEYS
What is the AI rating for KEYS?
Keysight Technologies, Inc. (KEYS) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KEYS's key strengths?
Claude: Exceptional free cash flow generation at 26.5% FCF margin with $879M annually from $3.3B revenue. Strong profitability with 19.7% operating margin and 19.0% net margin demonstrating operational excellence. ChatGPT: Strong liquidity (current 2.60x, quick 2.02x) and sizable cash. Robust free cash flow (25.4% margin) with low capex.
What are the risks of investing in KEYS?
Claude: Zero revenue growth (0% YoY) suggests business stagnation or cyclical industry headwinds with no organic expansion. Moderate return on equity of 10% and ROA of 5.4% indicate capital efficiency challenges despite strong margins. ChatGPT: Flat revenue signals end-market softness and limited near-term growth. Low returns (ROE 4.5%, ROA 2.4%) indicate capital inefficiency.
What is KEYS's revenue and growth?
Keysight Technologies, Inc. reported revenue of $3.3B.
Does KEYS pay dividends?
Keysight Technologies, Inc. does not currently pay dividends.
Where can I find KEYS SEC filings?
Official SEC filings for Keysight Technologies, Inc. (CIK: 0001601046) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KEYS's EPS?
Keysight Technologies, Inc. has a diluted EPS of $3.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KEYS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Keysight Technologies, Inc. has a A grade with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is KEYS stock overvalued or undervalued?
Valuation metrics for KEYS: ROE of 10.0% (sector avg: 15%), net margin of 19.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is KEYS's AI grade for 2026?
Our dual AI analysis gives Keysight Technologies, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is KEYS's free cash flow?
Keysight Technologies, Inc.'s operating cash flow is $942.0M, with capital expenditures of $63.0M. FCF margin is 26.5%.
How does KEYS compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 19.0% (avg: 10%), ROE 10.0% (avg: 15%), current ratio 1.90 (avg: 1.8).