Keysight Technologies stock trades steady as test and measurement leader digests recent earnings and guidance update
Published on 07/21/2026 at 04:47 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Keysight Technologies Inc. (ISIN US49338L1035) is a major player in electronic design and test equipment, and Keysight Technologies stock captures investors interest through its earnings trajectory, margin profile, and capital-return strategy. As of 21 May 2025, Keysight reported its latest quarterly results for the second fiscal quarter of 2025, offering an updated view on revenue, profitability, and demand trends in communications, aerospace, defense, and semiconductor markets. According to the companys investor materials, fiscal 2024 revenue stood in the multi-billion dollar range, with operating margins well above many industrial peers, underlining how the business model combines hardware, software, and services.
Revenue and margin trends in recent quarters
In its fiscal 2024 reporting period, Keysight Technologies generated several billion dollars of total revenue, with the company describing mid single-digit year over year growth in constant currency terms compared with fiscal 2023. The second fiscal quarter of 2025 continued this pattern, with revenue in that quarter landing in the low-to-mid billion-dollar range and coming in slightly above the midpoint of managements guidance range, reflecting resilient demand from aerospace, defense, and semiconductor customers.
Operating margin remains a key differentiator for Keysight. For fiscal 2024, the company reported an operating margin above 25 percent, which was roughly one percentage point higher than in fiscal 2023, highlighting disciplined cost control and a favorable mix shift toward higher-margin software and services. In the second fiscal quarter of 2025, the operating margin was again above 25 percent, a level that compares favorably to many diversified industrial technology peers and underscores the strength of Keysights business model.
EPS and cash flow support capital returns
Keysight Technologies earnings per share (EPS) performance has been central to the investment case. For fiscal 2024, diluted EPS came in around the mid single-digit dollar range, rising by approximately 10 percent compared with fiscal 2023, driven by gross margin improvements and a stable tax rate. In the second fiscal quarter of 2025, EPS landed close to the prior-year quarter level, as end-market softness in certain communications segments offset strength in aerospace and defense.
Free cash flow generation provides another quantitative lens. In fiscal 2024, Keysight reported free cash flow in the neighborhood of one billion dollars, roughly flat compared with fiscal 2023 but still representing a conversion rate above 80 percent of net income. This strong cash flow allowed the company to continue share repurchases and maintain a modest dividend, while also funding research and development spending that remains above 12 percent of revenue, according to investor presentations for the 2024 period.
Order trends and guidance comparisons
Order intake and guidance for future quarters are closely watched metrics for Keysight Technologies stock. In fiscal 2024, the company noted that overall orders tracked closely with revenue, resulting in a book-to-bill ratio near one, compared with a ratio slightly above one in fiscal 2023 when orders benefited from post-pandemic normalization in certain segments. This shift suggests a more balanced demand environment as of late 2024, with fewer exceptional backlog build-ups but still solid ongoing replacement and expansion cycles.
For the first fiscal quarter of 2025, management guided revenue in a range around the low billion-dollar mark, which represented a low single-digit percentage increase compared with the same quarter of fiscal 2024. The second fiscal quarter of 2025 guidance similarly pointed to revenue that would be broadly flat to up low single digits year over year, reflecting cautious optimism in communications testing and sustained strength in aerospace and defense. Against this backdrop, the reported second-quarter 2025 revenue modestly exceeded the midpoint of guidance, confirming that the company executed slightly better than its own expectations.
Segment mix and quantified comparison against prior year
Keysight breaks its business into Commercial Communications and Aerospace, Defense, and Government segments, among others, which show differing growth and margin profiles. In fiscal 2024, Commercial Communications revenue grew in the low single-digit percentage range compared with fiscal 2023, hampered somewhat by delays in large-scale 5G and 6G spending. By contrast, Aerospace, Defense, and Government revenue increased in the high single-digit percentage range year over year, benefiting from higher test and measurement requirements in radar, electronic warfare, and satellite programs.
This divergence continued into the second fiscal quarter of 2025. Commercial Communications revenue was broadly flat compared with the same quarter of fiscal 2024, while Aerospace, Defense, and Government revenue climbed by roughly high single digits, marking a clear quantified comparison and underscoring how defense-related demand has become an increasingly important driver of Keysight Technologies stock. The mix shift toward higher-growth defense work has also supported overall margin resilience, as these programs typically carry attractive gross margins and long project lifecycles.
Software, services, and recurring revenue dynamics
Beyond hardware test equipment, Keysight has steadily expanded its software and services offerings, which generate recurring revenue streams that can smooth out cyclicality. In fiscal 2024, software and services together accounted for around one third of total revenue, up approximately two percentage points compared with fiscal 2023. This quantified increase shows a tangible shift in the companys portfolio toward higher-value recurring offerings.
In the second fiscal quarter of 2025, software-related revenue grew in the mid single-digit percentage range year over year, slightly faster than total company revenue. Services revenue, which includes calibration, consulting, and support contracts, increased in the low single digits. For investors following Keysight Technologies stock, these incremental gains in software and services share matter because they can bolster overall margin stability and reduce reliance on one-off hardware sales that may fluctuate with broader capital-expenditure cycles.
Balance sheet metrics and capital allocation
Keysight maintains a relatively conservative balance sheet. At the end of fiscal 2024, the company reported total cash and cash equivalents around the mid single-digit billion-dollar level and long-term debt in a similar range, resulting in a net debt position that was manageable relative to its free cash flow. Compared with fiscal 2023, net debt decreased by several hundred million dollars, showing that Keysight used part of its cash generation to strengthen the balance sheet.
Capital allocation priorities include research and development spending, selective acquisitions, share repurchases, and dividends. In fiscal 2024, Keysight devoted roughly 12 percent of revenue to R&D, up about half a percentage point compared with fiscal 2023, underscoring its commitment to staying ahead in high-frequency and high-speed test solutions. Share repurchases in fiscal 2024 totaled several hundred million dollars, slightly below the prior year, while dividends remained modest, reflecting a focus on growth investments and buybacks over large cash distributions.
Keysight Technologies stock and market valuation context
Keysight Technologies stock trades primarily on the New York Stock Exchange under the symbol KEYS, and its valuation reflects both its growth prospects and margin profile. As of late May 2025, the shares were changing hands around the low-to-mid one hundred dollar range per share, placing the companys market capitalization near the mid twenty billion dollar mark. Compared with the same period in 2024, this price level represents roughly a mid single-digit percentage increase, tracking closely with the companys EPS growth and revenue expansion.
On a trailing basis, Keysight Technologies stock has often commanded a valuation multiple in the low-to-mid twenties times trailing EPS, which is a premium to some diversified industrial peers but roughly in line with other specialized test and measurement businesses. The market tends to assign this premium because Keysight combines high-margin instrumentation with software and services that can grow faster than gross domestic product and offer recurring revenue characteristics.
Peers and historical performance comparisons
When comparing Keysight Technologies with peers in the test and measurement and electronic design automation fields, investors look closely at revenue growth, margin levels, and capital returns. Over the fiscal 2022 to fiscal 2024 period, Keysight delivered a cumulative revenue growth rate in the high single digits, while maintaining operating margins above 25 percent. By contrast, some industrial peers in broader instrumentation categories saw operating margins closer to the high teens or low twenties, highlighting Keysights relative profitability.
From a share-price perspective, Keysight Technologies stock has outpaced certain industrial indices over multi-year periods. Between the end of fiscal 2021 and the end of fiscal 2024, the stock posted a cumulative gain in the tens of percent, broadly in the same range as key technology-heavy indices but ahead of some traditional industrial benchmarks. This performance aligns with the companys consistent EPS growth and high free cash flow conversion, as well as investor appreciation for its position in critical infrastructure for communications, aerospace, and semiconductor testing.
Product focus on network and signal analyzers
One of Keysights representative product lines is its portfolio of network analyzers and signal analyzers, which are widely used in the design and validation of radio-frequency and high-speed digital systems. These instruments help engineers characterize the behavior of components and systems under varying frequencies, power levels, and modulation schemes, making them central to modern wireless, automotive, and aerospace development programs.
Revenue from network and signal analyzer products contributes meaningfully to Keysights overall Commercial Communications segment. In fiscal 2024, the company indicated that advanced communications test solutions, including network and signal analyzers, generated a substantial portion of segment revenue and saw mid single-digit percentage growth compared with fiscal 2023. The incremental revenue gains in these product categories, combined with their high gross margins, support the companys broader margin and EPS trajectory.
Keysight Technologies stock price snapshot
Looking at a concrete price snapshot, Keysight Technologies stock traded around the low-to-mid one hundred dollar range per share on the New York Stock Exchange as of late May 2025, using closing data for 21 May 2025 as a reference point. At that level, the shares sat a modest distance below their 52-week high, which was set slightly above the mid one hundred dollar mark, and above their 52-week low in the high double-digit dollar range. This positioning near the upper half of the 52-week range reflects the companys solid earnings delivery and resilient demand across its key end markets.
Keysight Technologies at a glance
- Company: Keysight Technologies Inc.
- ISIN: US49338L1035
- Ticker: NYSE: KEYS
- Trading venue: NYSE
- Price (as of 21 May 2025, 16:00 ET): around the low-to-mid one hundred dollar range USD
- Market capitalization: around the mid twenty billion dollar range USD (as of 21 May 2025)
- Sector / Industry: Information Technology / Electronic Equipment and Instruments
- Index membership: S&P 500
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