Company Overview
Keysight Technologies Inc. (NYSE: KEYS) is a leading provider of electronic design and test solutions, serving industries such as aerospace, defense, automotive, energy, and telecommunications. The company offers a broad portfolio of hardware and software products, including oscilloscopes, signal analyzers, network emulators, and design automation tools. Headquartered in Santa Rosa, California, Keysight operates globally, with a significant presence in North America, Europe, and Asia. The company was formed in 2014 as a spin-off from Agilent Technologies, inheriting a legacy of innovation dating back to the original Hewlett-Packard Company. Keysight continues to focus on enabling customers to accelerate innovation to connect and secure the world.
Recent Earnings Performance
On May 20, 2025, Keysight reported its fiscal Q2 2025 results, showcasing strong financial performance. The company achieved revenue of $1.31 billion, a 7% increase year-over-year, surpassing the consensus estimate of $1.28 billion. Non-GAAP net income was $295 million, or $1.70 per share, exceeding the analyst expectation of $1.65 per share. GAAP net income stood at $257 million, or $1.49 per share, compared to $126 million, or $0.72 per share, in the same quarter last year. For the upcoming quarter, Keysight provided guidance with expected revenue between $1.305 billion and $1.325 billion and non-GAAP EPS ranging from $1.63 to $1.69. The company also raised its full-year outlook, reflecting confidence in continued growth.
Founding and Evolution
Keysight’s origins trace back to 1939 when Bill Hewlett and Dave Packard founded Hewlett-Packard (HP) in a garage in Palo Alto, California. This garage is famously known as the “Birthplace of Silicon Valley.” HP’s initial focus was on electronic test and measurement equipment, with their first product being the 200A Audio Oscillator. In 1999, HP spun off its test and measurement division into a new company, Agilent Technologies. Subsequently, in 2014, Agilent further spun off its electronic measurement business to form Keysight Technologies. This lineage positions Keysight as a company with over 80 years of expertise in electronic measurement.
Product Portfolio and Headquarters
Keysight offers a comprehensive range of products and solutions, including oscilloscopes, signal analyzers, network emulators, and design automation tools. These products cater to various industries, enabling customers to design, simulate, and test electronic systems efficiently. The company’s headquarters is located in Santa Rosa, California, serving as the central hub for its global operations.
Market Landscape
Keysight operates within the global test and measurement equipment market, which is experiencing steady growth. The market size was estimated at $38.91 billion in 2024 and is projected to reach $47.01 billion by 2029, growing at a CAGR of 3.9%. Another report forecasts the market to grow from $37.62 billion in 2025 to approximately $56.30 billion by 2034, with a CAGR of 4.58%. This growth is driven by increasing demand for advanced testing solutions in sectors like telecommunications, automotive, and aerospace.
Competitive Landscape
Keysight faces competition from several companies in the test and measurement industry. Notable competitors include Teledyne Technologies, Rohde & Schwarz, Anritsu, National Instruments, and Teradyne. These companies offer a range of products and solutions that overlap with Keysight’s offerings. Despite the competitive landscape, Keysight maintains a strong market position due to its comprehensive product portfolio and focus on innovation.
Differentiation and Competitive Advantage
Keysight differentiates itself through its integrated hardware and software solutions, enabling customers to accelerate innovation across various industries. The company’s emphasis on providing end-to-end design and test solutions allows for seamless workflows, reducing time-to-market for customers. Additionally, Keysight’s investments in emerging technologies, such as 5G and automotive Ethernet, position it as a leader in addressing future industry needs.
Management Team
Satish Dhanasekaran serves as the President and CEO of Keysight Technologies. He has been instrumental in driving the company’s strategic vision and growth initiatives. Neil Dougherty holds the position of Executive Vice President and Chief Financial Officer, overseeing the company’s financial operations. Ingrid Estrada is the Senior Vice President, Chief People and Administrative Officer, and Chief of Staff, playing a key role in organizational development and administrative functions.
Financial Performance Overview
Over the past five years, Keysight has demonstrated consistent financial growth. The company’s revenue has grown at a 5-year CAGR of 3.46%, reaching $5.42 billion in 2022. In fiscal year 2024, Keysight reported revenue of $4.98 billion, compared to $5.46 billion in the previous year. GAAP net income was $0.61 billion, or $3.51 per share, down from $1.06 billion, or $5.91 per share, in fiscal 2023. Non-GAAP net income stood at $1.10 billion, or $6.27 per share, compared to $1.49 billion, or $8.33 per share, in the prior year. The company’s balance sheet remains strong, with cash flow from operations at $1.05 billion and free cash flow at $0.91 billion in fiscal 2024.
Bull Case for Keysight Technologies
- Strong market position with a comprehensive product portfolio catering to high-growth industries like 5G, automotive, and aerospace.
- Consistent financial performance with a solid balance sheet and strong cash flow generation.
- Strategic investments in emerging technologies and markets position the company for long-term growth.
Bear Case for Keysight Technologies
- Exposure to cyclical industries may lead to revenue volatility during economic downturns.
- Intense competition from established players could pressure margins and market share.
- Dependence on global supply chains may pose risks related to geopolitical tensions and trade policies.
The stock is in a stage 4 decline (bearish) on the monthly chart and consolidating stage 1 (neutral) on the weekly chart. The daily chart is in as stage 2 markup (bullish) and the stock should get to the resistance in the $187 range.
