KEYS Stock Risk & Deep Value Analysis
Keysight Technologies Inc
Technology • Scientific & Technical Instruments
DVR Score
out of 10
What You Need to Know About KEYS Stock
We analyzed Keysight Technologies Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran KEYS through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
KEYS Risk Analysis & Red Flags
What Could Go Wrong
The primary risk for Keysight is its premium valuation. If global R&D spending slows significantly or industry competition intensifies, the company's growth could decelerate, leading to multiple contraction and share price decline even if fundamentals remain stable. Furthermore, the provided Q1 2026 numbers are confusing and if they represent the actual consolidated company performance, it would indicate a severe, unannounced deterioration.
Risk Matrix
Overall
Moderate
Financial
Low
Market
Medium
Competitive
Medium
Execution
Low
Regulatory
Low
Red Flags
- ⚠
Significant discrepancy in reported Q1 2026 revenue/margins ($365.6M revenue, 7.9% GM) vs. typical company scale (~$1.6B/quarter, much higher margins), which may indicate a reporting anomaly or error in the research brief's interpretation.
- ⚠
Director Richard P. Hamada sold 870 shares in March 2026 (minor, but still a sale by an insider).
- ⚠
Stock price is near all-time highs and already at median analyst price target, suggesting limited near-term upside.
Upcoming Risk Events
- 📅
Global R&D spending slowdown due to economic recession
- 📅
Increased competition in specific test equipment segments
When to Reconsider
- 🚪
Exit if Q2 2026 reported revenue falls significantly below the $1.69B-$1.71B guidance.
- 🚪
Sell if sustained gross margin (for the overall company, not a specific segment) drops below 60%.
- 🚪
Exit if the global semiconductor or R&D capital expenditure outlook darkens considerably for 2+ consecutive quarters.
Unlock KEYS Risk Analysis & Red Flags
Create a free account to see the full analysis
What Does Keysight Technologies Inc (KEYS) Do?
Market Cap
$56.57B
Sector
Technology
Industry
Scientific & Technical Instruments
Employees
15,500
Keysight Technologies, Inc. provides electronic design and test solutions worldwide. The company operates in two segments, Communications Solutions Group and Electronic Industrial Solutions Group. It offers oscilloscopes; electronic design automation software; instrument measurement and workflow software, application software testing, instrument control software and connectivity, and software testing; modular instruments; digital multimeters, phase noise measurement, power meters and power sensors, counters, LCR meters and impedance measurement products, and electrometers; spectrum, logic, noise figure, and network analyzers; and protocol analyzers and exercisers, bit error ratio testers, AC and DC power analyzers, materials test equipment, device current waveform analyzers, and curve tracers. It also provides signal, waveform, and function generators; arbitrary waveform generators, DC power supplies, and DC electronic loads; wireless drive test, radio access and core network test, wireless analyzers, wireless network emulators, channel emulations, and over-the-air test; application and threat intelligence, cloud test, 5G NR base station test, cyber training simulators, network test hardware, protocol and load test, network security test, and network modeling; bypass switches, cloud visibility and synchronization, network and application monitoring, and network packet brokers and taps; and application-specific test systems, in-circuit test systems, parametric test, laser interferometers and calibration systems, monolithic laser combiners and precision optics, photonic test and measurement products, MMIC millimeter-wave and microwave devices, and accessories. In addition, it offers product support, technical and application support, installation, training, engineering, and integration services. The company was founded in 1939 and is headquartered in Santa Rosa, California.
Visit Keysight Technologies Inc WebsiteInvestment Thesis
Keysight is a well-managed market leader positioned to benefit from long-term secular trends in advanced electronics, 5G/6G, AI, and automotive electrification. Its strong competitive moat, robust balance sheet, and consistent execution make it a reliable compounder for long-term investors, though its large market cap fundamentally limits 10x growth potential.
Is KEYS Stock Undervalued?
Unlock the full AI analysis for KEYS
Get the complete DVR score, risk analysis, and more
Unlock the full report
Create a free account to see the DVR score, risk flags, and AI analysis.
KEYS Price Targets & Strategy
12-Month Target
$350.00
Bull Case
$375.00
Bear Case
$290.00
Valuation Basis
Based on 27x forward P/E (historical average for quality industrial tech) applied to estimated FY26 EPS of $12.96 (blended analyst estimates and company guidance). Note: This EPS differs significantly from the provided Q1 $0.49, reflecting the overall company's expected performance, not the likely segmental Q1 data.
Entry Strategy
Dollar-cost average on dips towards $300-$310, near key moving averages or recent support. Wait for Q2 earnings for clearer picture on full company financials.
Exit Strategy
Take profit above $350. Consider stop-loss at $280 if market conditions deteriorate or Q2 guidance disappoints.
Portfolio Allocation
3-5% for moderate risk tolerance due to stable nature and defensive qualities in a portfolio.
Price Targets & Strategy
Upgrade to Premium for price targets and entry/exit strategies
Is KEYS Financially Healthy?
Valuation
P/E Ratio
58.81
Forward P/E
8.59
EV/EBITDA
39.50
PEG Ratio
0.57
Price/Book
1.39
Price/Sales
8.80
Profitability
Gross Margin
61.86%
Operating Margin
15.96%
Net Margin
16.95%
Return on Equity
16.56%
Revenue Growth
13.13%
EPS
$5.56
Balance Sheet
Current Ratio
2.35
Quick Ratio
1.63
Debt/Equity
0.43
Total Debt
$8.50B
Cash & Equivalents
$2.10B
Cash Flow
Operating Cash Flow
$1.47B
Free Cash Flow
$1.34B
EBITDA
$1.48B
Other
Beta (Volatility)
1.22
Dividend Yield
1.00%
Does KEYS Have a Competitive Moat?
Sign in to unlockMoat Rating
🏰 Wide
Moat Trend
Stable
Moat Sources
3 Identified
Keysight's moat is durable due to its specialized and complex technology, which is difficult and expensive for competitors to replicate. Its products are deeply integrated into customer R&D workflows, creating high switching costs. The need for advanced testing equipment in emerging tech (5G/6G, AI, quantum) ensures continued demand for its unique solutions.
Moat Erosion Risks
- •Rapid technological shifts that could render existing platforms obsolete faster than anticipated
- •Competitors developing 'good enough' lower-cost alternatives
KEYS Competitive Moat Analysis
Sign up to see competitive advantages
KEYS Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral. While a quality company, it's not a 'meme stock' or high-growth speculative play attracting significant retail social media buzz.
Institutional Sentiment
Positive. Evidenced by 84.58% institutional ownership and multiple analyst price target raises in April 2026.
Insider Activity (Form 4)
Director Richard P. Hamada sold 870 shares at an average price of $275.78 on March 30, 2026. This is a minor sale relative to holdings and market cap, not indicative of widespread insider bearishness.
Options Flow
Normal options activity. No specific unusual call/put volume or large block trades indicating a strong directional bias was reported in the research.
Earnings Intelligence
Next Earnings
2026-05-19 (after market close)
Surprise Probability
Medium
Historical Earnings Pattern
Keysight typically exhibits stable growth, and stock reactions to earnings are usually moderate unless guidance significantly deviates from expectations. Given recent price strength, any disappointment could lead to profit-taking.
Key Metrics to Watch
Competitive Position
Top Competitor
Rohde & Schwarz (private, but a key competitor)
Market Share Trend
Stable to slightly gaining in key strategic areas (e.g., medical, wireline), leveraging its deep R&D and customer relationships.
Valuation vs Peers
Trading at a slight premium to some industrial tech peers, reflecting its market leadership and consistent profitability. Its P/E multiples are generally higher than more cyclical industrial companies but lower than pure-play software/AI firms.
Competitive Advantages
- •Proprietary technology and extensive IP portfolio
- •Strong brand reputation and deep customer relationships with R&D departments
- •Broad product portfolio across the electronic design & test lifecycle
Market Intelligence
Get sentiment, earnings intel, and peer analysis with Premium
What Could Drive KEYS Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings on May 19, 2026 (after market close)
- •Continued strong wireline and AI-driven demand
Medium-Term (6-18 months)
- •Expansion into new 6G R&D initiatives
- •Strategic partnerships in quantum computing or EV battery testing
Long-Term (18+ months)
- •Leadership in next-generation electronic design and test for AI/ML hardware
- •Market dominance in advanced materials and components testing
Catalysts & Growth Drivers
Upgrade to Premium to see catalysts
What's the Bull Case for KEYS?
- ✓
Continued strong order growth in wireline and AI-related segments
- ✓
Sustained margin expansion and efficient capital allocation
Bull Case Analysis
See what could go right with Premium
Competing with KEYS
See how Keysight Technologies Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Keysight Technologies Inc KEYS | $56.6B | 0.6 | 58.8 | $6.4B | 16.9% | 13.1% | |
Apple Inc AAPL | $3.9T | 1.5 | 33.2 | $391.0B | 27.0% | 10.1% | Compare → |
Alphabet Inc GOOGL | $4.7T | 1.0 | 29.1 | $402.8B | 37.9% | 17.4% | Compare → |
Meta Platforms Inc META | — | 5.1 | 15.7 | — | 30.1% | 22.2% | Compare → |
Microsoft Corp MSFT | — | 0.5 | — | — | — | — | Compare → |
NVIDIA Corp NVDA | $4.4T | 5.3 | 38.5 | $215.9B | 55.6% | 65.0% | Compare → |
📊 Explore More Stock Analysis
Get comprehensive Deep Value Reports for thousands of stocks. Research risk, financial health, and investment potential with our AI-powered analysis.
How Keysight Technologies Inc Makes Money
Keysight Technologies designs, manufactures, and sells electronic design and test solutions, including hardware, software, and services. The company helps engineers and scientists develop, test, and optimize electronic products across various industries like communications, aerospace, defense, automotive, energy, and government. Essentially, it provides the tools that enable innovation in electronics, from R&D to manufacturing.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Keysight Technologies Inc (KEYS)?
As of April 29, 2026, Keysight Technologies Inc has a DVR Score of 0.6 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Keysight Technologies Inc?
Keysight Technologies Inc's market capitalization is approximately $56.6B. The company operates in the Technology sector within the Scientific & Technical Instruments industry.
What ticker symbol does Keysight Technologies Inc use?
KEYS is the ticker symbol for Keysight Technologies Inc. The company trades on the NYQ.
What is the risk level for KEYS stock?
Our analysis rates Keysight Technologies Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of KEYS?
Keysight Technologies Inc currently has a price-to-earnings (P/E) ratio of 58.8. This is above the market average, suggesting the stock may be priced for high growth expectations.
Does Keysight Technologies Inc pay a dividend?
Yes, Keysight Technologies Inc pays a dividend with a current yield of approximately 1.00%.
Is Keysight Technologies Inc's revenue growing?
Keysight Technologies Inc has reported revenue growth of 13.1%. The company is showing strong top-line momentum.
Is KEYS stock profitable?
Keysight Technologies Inc has a profit margin of 16.9%. The company is profitable but margins are modest.
How often is the KEYS DVR analysis updated?
Our AI-powered analysis of Keysight Technologies Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 29, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for KEYS (Keysight Technologies Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.